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HomeMy WebLinkAboutCC AG PKT 2003-07-14 #N ti AGENDA REPORT 6i/ e 0 'I DATE: July 14, 2003 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Pamela Arends -King, Director of Administrative Services/Treasurer SUBJECT: 2003/2004 Investment Policy and Investment Guidelines SUMMARY OF REQUEST: Approve the 2003/2004 City of Seal Beach Investment Policy and Investment Guidelines for investing public funds. BACKGROUND: The City of Seal Beach adopted a Budget and Fiscal Policy June 25, 2001 which compliments' the annual Investment Policy that is adopted annually due to AB 1073, which the State Assembly adopted in 1987. AB 1073 mandates that cities adopt an Investment Policy Resolution outlining the type of investments into which a city may place its idle funds. Additionally, as a result of the Orange County bankruptcy, legislation in the form of Senate Bills 564 and 866 reinforces that a local agency treasurer must file an annual investment policy with the governing body, and requires the treasurer to file a quarterly report on investments. The City of Seal Beach has elected to prepare Investment Reports on a monthly basis and will continue to do so. Senate Bill 566 says that the treasurer investing public funds is a trustee and has a fiduciary responsibility to the Prudent Man Rule which states "Investment shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." The Resolution for Council approval has been prepared in accordance with Government Code Sections 53646(a) and 53600, 53600.5, 53601, and 53635 and guidelines published by the California Municipal Treasurer's Association. The Resolution provides for safety and liquidity in maximizing the City's investment portfolio. Agenda Item /V P July 14, 2003 2003/2004 Investment Policy and Investment Guidelines RECOMMENDATION: Approve a Resolution adopting the 2003/2004 Investment Policy and Investment Guidelines pursuant to Senate Bills 564 and 866. atztzz,41 -- Pamela Arends -King Director of Administrative Services/Treasurer NOTED AND' ROVED: ` ' 6 John :. • l e rski City Ma . ger /