HomeMy WebLinkAboutCC Res 3459 1985-02-25
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RESOLUTION NUMBER ~~~
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 1985
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
WHEREAS, the California State Legislature passed legislation during
the 1984 session requiring the filing of an annual Statement
of Investment Policy by local public agencies; 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.
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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
conjunctiQn with the City Treasurer. The City of Seal
Beach strives to maintain the level of investment of
idle.funds as near.to 100% as possible. Consistent with
this factor, 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
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.
Resolution Number ~~~7f
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.
The City of Seal Beach operates its investment program
with many Federal, State and self-imposed constraints.
It does not buy stocks; it does not speculate; it does
not deal in futures, options or security loan agreements.
Longer term investments (over one year) are generally
limited to maturities of five years or less,
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.
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The final 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 calendar year 1985 in compliance with Section 53646(A)
of the Government Code of the State of California.
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PASSED, APPROVED AND ADOPTED by the City Council of the Ci~ of
Sea 1 Beach at a meeting th reof held on the - day of~ ,1/ut01 '
1985, by the following vot : _J
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AYES: Councilmembe
NOES: councilmembers~
ABSENT: councilmembers~~ ,
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ayor
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STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SEAL BEACH
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ATTEST:
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I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California,
do hereby certify that the f~~Oing resolution is the original
copy of Resolution Number ~ ~ on file in the office of the City
Clerk, passed, approved and ad ted by the City Council of the 'A'~
City of 1 Beach at a regular meeting thereof held on the ~~ ~
day of , 1985.
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