HomeMy Public PortalAboutResolution 85-2365RESOLUTION NO. 85 -2365
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY ACKNOWLEDGING THE RECEIPT AND FILING
OF THE ANNUAL STATEMENT OF INVESTMENT POLICY FOR
THE YEAR 1985.
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 of the City of Temple City de-
clares 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.
OBJECTIVE: The cash management system of the City
of Temple City is designed to accurately monitor
and forecast expenditures and revenues, thus insur-
ing 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 Temple City operates its pooled
ale cash investments under the Prudent Man Rule
(Civil Code §2261). This affords abroad spectrum
of investment opportunities so long as the invest-
ment is deemed prudent and is permissable under
currently effective legislation of the State of
California and other imposed legal restrictions.
The City of Temple City strives to maintain the
level of investment of idle funds as near to 100%
as possible. Consistent with this factor, invest-
ments 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:
1. Safety
2. Liquidity
3. Yield
Government securities and debt obligations by Gov-
ernmental agencies whose obligations carry the full
faith and credit of the Federal Government, and re-
purchase 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.
Most investments are highly liquid, with the excep-
tion 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.
RESOLUTION NO. 85 -2365, Page 2
The City of Temple City operates its investment pro-
gram with many Federal, State and self- imposed con-
straints. It does not buy stocks; it does not specu-
late; it does not deal in futures, options or security
loan agreements. Investments are generally limited
to maturities of one year or less.
To maximize investment income, the City of Temple City
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 Temple
City 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 that the City Council of the
City of Temple City claims that an annual Statement of Investment
Policy for the City of Temple City has been filed by the City
Treasurer for the calendar year 1985 in compliance with Section
53646 (A) of the Government Code of the State of California.
APPROVED AND ADOPTED this 13th day of June, 1985.
ATTEST:
Chief De uty City
MAYOR
I hereby certify that the foregoing Resolution No. 85 -2365
was adopted at a regular meeting of the City Council held on the
18th day of June, 1985, by the following vote:
AYES: Councilmen- Atkins, Gillanders, Swain, Tyrell, Dennis
NOES: Councilmen -None
ABSENT: Councilmen-
None
Chief D uty City % erk