HomeMy Public PortalAbout95-125 (08-15-95)RESOLUTION NO. 95 -125
A RESOLUTION OF THE CITY COUNCIL Or THE CITY OF
LYNWOOD APPROVING THE TREASURER'S STATEMENT
OF INVESTMENT POLICY
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WHEREAS, the Lynwood City Treasurer is responsible for the City's cash
flow whereby funds are transferrred from various accounts to meet operating
obligations; and
WHEREAS, the Treasurer is also responsible for the investment of idle cash;
and
WHEREAS, the City Treasurer has prepared guidelines for a prudent
investment policy; and
WHEREAS, the policy contains certain investment criteria; and
WHEREAS, the basic premise of the policy is to ensure the safety of funds and
assure that the City's cash needs are met.
NOW, THEREFORE, the City Council do hereby find, proclaim, order and
resolve as follows:
Section 1. That the City Treasurer's Statement of Investment Policy is hereby
approved.
Section 2. This resolution shall go into effect immediately upon its adoption.
PASSED, APPROVED
August 1995.
and ADOPTED this 15th day of
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ATTEST:
a , - eitzA-_ , X4 F- eL,"
ANDREA L. HOOPER
City Clerk
STATE OF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood,
do hereby certify that the foregoing resolution was passed and
adopted by tha City Council of the City of Lynwood at a regular
meeting held on the 15th day of August , 1995.
AYES: COUNCILMEMBER HEINE, HENNING, REA, RICHARDS, BYRD
NOES: NONE
ABSENT: NONE
67�'x,
City Clerk, City of Lynwo
STATE OF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood,
and Clerk of the City Council of said City, do hereby certify that
the above and foregoing is a full, true and correct copy of
Resolution No. 95 -125 on file in my office and that said resolution
was adopted on the date and by the vote therein stated.
Dated this 15th day of August 1995
City Clerk
STATEMENT OF INVESTMENT POLICY
As a General Law City, Lynwood will place its pooled idle cash in investments
which are prudent and allowable under the current legislation of the State of
California.
' The City Treasurer of the City of Lynwood will maintain the level of investment of
all idle funds, less required reserve, through daily and future projected cash flow
determinations. Idle cash management and investment transactions are allowed in
the following types of investments:
1) Securities of the US Government
2) Certificates of Deposits
3) Bankers Acceptances
4) Negotiable Certificates of Deposits
5) Repurchase Agreements
6) Local Agency Investment Fund (LAIF)
7) Savings Accounts
The criteria for selecting the City's investments and the order of selection priority
are :
1) Safety
2) Liquidity
3) Yield
Government Securities are the highest quality investments available, in terms of
safety and liquidity. However, the City Treasurer may invest idle cash in insured
or collateralized accounts such as Certificates of Deposits, Savings Accounts, and
Bankers Acceptances.
Although most investments are highly liquid, with the exception of collateralized
certificates of deposits held by banks and savings & loans, maturities will be
selected to anticipate cash needs, thereby obviating the need for forced liquidation.
The Treasurer's Office will attempt to obtain the highest yield in selecting
investments, provided that the criteria for safety and liquidity are met. Although
investments normally carry a positive yield curve (i.e. long -term maturity rates are
higher than short -term maturities), the Treasurer will attempt to ladder its
maturities to meet anticipated cash needs in such a way that new investment money
can be placed in maturities carrying a higher rate than is available in the extremely
short market of 30 days or less.
The Treasurer's Office will operate the City's investment pool under both the State
of California and the City of Lynwood investment guidelines. The City's portfolio
will not include the following investments:
1) Stocks
2) Speculations
3) Futures or Options
4) Commercial Paper
The portfolio will be carefully monitored to assure the prudent management of the
City's investments.
The majority of the City's portfolio will contain investments with maturities of one
year or less. Longer term investments are allowable, but generally will not exceed
fifteen percent (15 %) of the total portfolio.
In insuring the investment of monies to the fullest extent possible, the cash
management system of the City of Lynwood will be structured to monitor and
forecast revenues and expenditures.
The basic premise of the City's Statement of Investment Policy is to ensure the
safety of funds and assure that cash needs are met.