HomeMy WebLinkAbout1987-5015
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RESOLUTION NO. 5015
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO ACKNOWLEDGING THE RECEIPT AND FILING OF THE ANNUAL
STATEMENT OF INVESTMENT POLICY OF THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO FOR THE YEAR 1987.
BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Recitals.
A. The California State Legislature passed legislation 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 legislation
into law effective January 1, 1985 (Chapter 1226).
C. The Executive Director of the Redevelopment Agency of the
13 City of San Bernardino declares the annual Statement of Investment
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Policy is as set forth in Exhibit "A", 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 Redevelopment Agency of the City of San Bernardino has
been filed by the Executive Director for calendar year 1987 in
compliance with Section 53646(a) of the Government Code of the State
of California.
AYES: Members Estrada, Flores, Maudsley, Quiel
Frazier, Strickler.
Approved as to form:
NOES: None.
Agency Counsel
ABSTAIN OR
ABSENT: Absent: Member Reilly
By
May 11, 1987
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Redevelopment Agency of the City of San Bernardino
Statement of Investment Policy
PURPOSE:
This Statement of Investment Policy is to be rendered annually to the
legislative body of the Redevelopment Agency in accordance with the provisions
of Government Code Section 53646. A monthly report to the Chief Executive
Officer and legislative body shall also be filed showing the type of
investment, institution, date of maturity, amount of deposit, current market
value of all securities with a maturity of more than twelve months, rate of
interest, and other such data as may be required by the local agency.
OBJECTIVE:
This statement is to be used as a guideline for the efficient placement and
monitoring of investments of the Redevelopment Agency's cash. The Agency's
cash management system is designed to invest all funds, as near as 100% as
possible, through accurate monitoring and forecasting of expenditures and
revenues, thus enabling the Redevelopment Agency to maximize all investments.
POLICY:
The Redevelopment Agency's investments are placed according to the forecast of
needed funds, and are invested to attain the highest possible yield based on
that forecast. The Agency chooses only those investments that are prudent and
allowable under current legislation of the State of California and other
imposed legal requirements.
All investments are placed, and mature, on a weekly bases, unless large sums
of cash are received or there is a need for funds to be disbursed more
frequently according to the forecast. In these cases, the investments may be
placed and mature more frequently than once a week. The same day that
investments mature, any idle cash remaining after disbursements for
expenditures is placed immediately for investment.
The minimization of risk of investment is the most important factor in the
placing of investments. State law restricts the municipalities to certain
types of investment instruments, which is one type of risk control.
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All investments are analyzed so that there will be no loss of principal or
interest. Prudent investing so that the maturity dates of investments
coincide with the dates of disbursement of funds reduces the risk of such a
loss.
The Redevelopment Agency invests its funds in collateralized time certificates
of deposit issued by local banks. The Agency is able to anticipate its cash
needs and reduce the need for forced liquidation of these certificates of
deposit.
Investments by the Redevelopment Agency, besides the time certificates of
deposits issued by local banks, may be in the form of collateralized or
insured savings accounts or repurchase agreements. The Agency does not buy
stocks, or deal in futures, options. or security loan agreements.
The selection and placement of all investments of the Redevelopment Agency is
based on the highest possible yield at a local bank which reflects the
maturity date that will best coincide with the disbursement of funds.
The Agency does use all feasible investment aids in the selection and
monitoring of interest rates, thus 'enabling the Agency to maximize investment
income, which along with the ,reduction of risk is the prime objective of the
Redevelopment Agency.
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