HomeMy WebLinkAboutCC Res 3891 1989-11-13
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RESOLUTION NUMBER 3/111
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEAL BEACH, CALIFORNIA, ACKNOWLEDGING THE
RECEIPT AND FILING OF THE ANNUAL STATEMENT OF
INVESTMENT POLICY FOR THE YEAR 1989/90
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
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WHEREAS, the California State Legislature passed legislation
during the 1984 session requiring the filing of an
annual Statement of Investment Policy by local public
. agenc i es; and
WHEREAS, the Governor of the State of California signed such
legislation into law effective January 1, 1985 (Chapter
1226); and
WHEREAS, the City Treasurer, in conjunction with the City
Manager of the City of Seal Beach, declares the annual
Statement of Investment Policy to be as follows:
PURPOSE: This statement is intended to provide a
guideline for the prudent investment of temporary idle
cash, trust funds and restricted monies and to outline
a policy for maximizing the efficiency of the cash
management system, Ultimate investment goals include
the enhancement of economic status and the protection
of pooled cash investments.
OBJECTIVE: The cash management system of the City of
Seal Beach is designed to accurately monitor and
forecast expenditures and revenues, thus insuring the
investment of monies to the fullest extent possible.
Attempts to obtain highest interest yields possible are
a statement of fact as long as investments meet the
criteria required for safety and liquidity,
POLICY: The City of Seal Beach operates its pooled
idle cash investments under the Prudent Man Rule, which
requires a standard of care and diligence in investing
City assets at least equal to the standard used to
invest City Treasurer's personal assets, This affords
a broad spectrum of investment opportunities so long as
the investment is deemed prudent and is permissible
under currently effective legislation of the State of
California and other imposed legal restrictions, and is
approved by the City Manager or his designee in
conjunction with the City Treasurer, The City of Seal
Beach strives to maintain the level of investment of
its idle funds as near to 100S as possible, Consistent
with this precept, investments are made under the terms
and conditions of Sections 53600.53683 of the
Government Code of California. Criteria for selecting
investments and the absolute order of priority are:
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1. Safety
2. Liquidity
3. Yield
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Government securities and debt obligations by
Governmental agencies whose obligations carry the full
faith and credit of the Federal Government, and
repurchase agreements of the same stature, are the
highest quality investments available in the terms of
safety and liquidity,
Certificates of deposit, savings accounts and interest
bearing active deposits are insured or collateralized
to the degree consistent with or exceeding existing law
or regulation.
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':l1 Resolution Number 31J?/
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All City investments are liquid, with the exception of
collateralized or insured term certificates of deposit
issued by banks and savings and loans, Certificate
maturities are selected to anticipate cash needs,
thereby obviating the need for forced liquidation and
the accompanying loss of interest payment.
To maximize investment income, the City of Seal Beach
uses all available, economically feasible investment
aids. Economic conditions and various money markets
are monitored in order to assess the probable course of
interest rates.
.The basic premise underlying the City of Seal Beach
investment philosophy is to insure the safety of
principal and to provide money when needed. A high
dollar yield on investments, though important, ranks
third in the priority of investment strategy,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Seal Beach, California, as follows:
That an annual statement of investment policy for the
City of Seal Beach has been filed by the City Treasurer
for year 1989/90 in compliance with Section 53646(A) of
the Government Code of the state of California.
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AYES:
NOES:
Councilmembers
,
'~
Councilmembers
ABSENT: Councilmembers
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STATE OF CALIFORNIA)
COUNTY OF ORANGE ) 55
CITY OF SEAL BEACH )
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ATTEST:
I, Joanne, M. Yeo, City Clerk of Seal Beach, California, do
hereby certify that the foregoing resolution is the original copy
of Resolution Number ~J?ol on file in the office of the City
Clerk, passed, a prov~ adopted y the City Council of the
C~~:~ Seal Be t reg ar eting thereof held on the
~ day of , 1989,