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Home My WebLink About1986-111 ".... 1 2 3 4 5 6 RESOLUTION NO. 86-111 RESOLUTION OF THE CITY OF SAN BERNARDINO ACKNOWLEDGING THE RECEIPT AND FILING OF THE ANNUAL STATEMENT OF INVESTMENT POLICY FOR THE YEAR 1986. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. A. The California State Legislature passed legislation 7 during the 1984 session requiring the filing of an annual Statement of Investment Policy by local public agencies. B. The Governor of the State of California signed such 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 legislation into law effective January 1, 1985 (Chapter 1226). C. The City Treasurer of the City of San Bernardino declares the annual Statement of Investment Policy is as set forth in Exhibit "An, attached hereto and incorporated herein by reference as though fully set forth at length. SECTION 2. Implementation. An annual Statement of Investment Policy for the City of San Bernardino has been filed by the City Treasurer for calendar year 1986 in compliance with Section 53646(a) of the Government Code of the State of California. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a rAgll1nr meeting thereof, held on the , 1986, by the following vote, to day of Apr i 1 7th wit: / / / / / / / / / / 1 2 3 4 5 6 AYES: Council Members Estrada, Reilly, Marks, Quiel, Frazier, Strickler NAY S : None ABSENT: Council Member Uernandez The foregoing resolution is hereby approved this ~i ,>-<:,.~" 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of April , 1986. Approved as to form: ~ ~;~ ' .... tJl?h"./?tZt//'~ / ./ ~ City Clerk /;, /' { day J? -r' e City of' San\~~rnardino 2 ( CI~Y OF SAN BERNARDINO Stateme~t.~f.~~v~~t~~ntP61icy .PURPOSE This statement is intended to provi~e guidelines for the prudent investment of the City's temporary idle cash, and outline' the policies for maximizing the efficiency of the City's cash manage~ent system. The ultimate 00al is to . enhance the economic status of the City while protecting ~ its pooled cash. ' ."(.... , . OBJECTIVE The City's cash management system is oesigned to accurately monitor and forecast expenditures anf{l.revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as investmenfs meet the criteria .established for safety and liquidity. POLICY The City of San Bernardino orerates its temporary pooled idle cash investments urider the prudent man rule' (Civil Code Seclion 2261, et sequl) (copy attached). This affords a broad spectrum of investment opportunities so long as the investment is deemed prudent and is allowable under current legislation of the State of California and other imposed legal restrictions. ~ . , The City of San Bernardino strives to maintain the level of investment of idle funds as near to 100% as possible, .through daily and projected cash flow determination. Idle: cash.management and investment transactions are.the re~ponsi- bility of the City Treasurer. Investments are made under the terms and conditions of Sections 53600-53683 of the Government C~de of California. Criteria for selecting investments and the order of priority are: EXHIBIT A 1) SAFETY Safety and the minimizing of risks associated with investments refers to attempts to reduce the potential loss of principal, interest, or a combination of the two. The first level of control is in State law which restricts municipalities to certain investment instruments. The second level of ris~ control is the investment in instru- ments that appear on'examination to be the most credit worthy. The third level of- control is in the reduction of market risk by investing in sufficient instruments that have maturities coinciding with dates of disburse- ment. San Bernardino only invests in those instruments that are considered very safe. 2) LIQUIDITY Liquidity is the ability to easily sell at any time with the minimal risk of losing some portion of principal..or ;' interest. Liquidity is an extremely important qualrfy , as the City may have an unexpected need for funds to be disbursed occasionally. Most investments are highly 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 eliminating the need for forced liquidation. " "3) YIELD Yield is the potential dollar earning an investment can provide or "rate of return". San Bernardino attempts to obtain the highest yield possible when selecting an investment, provided that the criteria stated in the Investment Policy for safety and liquidity are met and the investment guideline and strategy are adherred to. Investments are made in the following: Securities of the U. S. Government~and obligations of its agencies; Registered treasury notes, bonds, or legal -obligations of the state of California; bonds, notes, warrants or legal obligations of any local agency with the State of California; Certificates of Deposit, placed with commercial banks and savings and.loans; Bankers Acceptances; Repurchase Agreements; Commercial Paper; negotiable Certificates of Deposit; Local Agency Investment Fund Demand Deposits; Passbook Savings Account Demand Deposits. Government and agency securities are the highest quality investments available in terms of sa~ety and liquidity. Certificates of Deposit, savings accounts, repurchase agreements, and bankers acceptances 'are insured 'or collateralized. Only commerical paper with both A-I Moody's and P-l.Standard and Poor's ratings are purchased. .; The City of San Bernardino operates its investment program with many Federal and State, and self-imposed constraints. It does not buy stocks, or deal in futures, options, or security loan agreements. To maximize investment income, the City of San Bernardino 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 final basic premise underlying the City of San Bernardino's investment philosophy is to insure the safety of existing funds and insure that they are always readily available when needed. .,.- . , . : _. - 1. - -.- 'T-- ~..... - '" . .. .. . ,". . .., CIVIL CODE i 2261. [Investment of funds) (1) In investing, reinvesting. purchasing, acquiring, exchanging, selling and managing propeny for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevail.. ing, which men of prJdence, discretion and intelligence exercise in the management of their own affairs, not in regard to specu latlon, but in regard to the permanent disposition of their funds, considering th~.~_ probable income, as well as the probable safery of their capita1.. '\Vithin the limitations of the foregoing standard, and subject to any express provisions. or limitations contained in any particular trust instrument, a trustee is authorized to Acquire every kind of proptrty, real, personal or mixed, and every kind of investment, specifically including, but not by way of Jimitation, co~ratc obligations of every kind, and stocks. preferred or common. which men of pnldcfJcc, discretion and inteJJigence acquire for their own account. " . - .. .. Resolution No. 4041 Attachment . -