HomeMy Public PortalAboutResolution 86-2446RESOLUTION NO. 86 -2446
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 1986 -87.
WHEREAS, the California State Legislature passed legislation during the 1984
session requiring the filing of an annual Statement of Investment Policy by local
IIIublic agencies: and
WHEREAS, the Governor of the State of California signed such legislation into
aw effective January 1, 1985 .(Chapter 1226); and
WHEREAS, the City Treasurer of the City of Temple City declares 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 fund's and restricted
monies and to outline a policy for maximizing the efficiency of the
cash management system. Ultimate investment goals include the enhance-
ment 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 insuring 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.
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POLICY: The City of Temple City operates its pooled idle cash in-
vestments under the Prudent Man Rule (Civil Code 2261). This affords a
broad spectrum of investment opportunities so long as the investment
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, in-
vestments 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 Governmental agencies whose
obligations carry the full faith and credit of the Federal Government, and
repurchase 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 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
obviating the 'need for forced liquidation and the accompanying loss of
interest payment.
The City of Temple City operates its investment program with many Federal,
State and self - imposed constraints. It does not buy stocks; it does not
speculate; it does not deal in futures, options or security loan agreements.
Investments are generally limited to maturities of one year or less,
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RESOLUTION NO. 86_2446
, Page 2
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 1986 -87
in compliance with Section 53646 (A) of the Government Code of the State of
California.
APPROVED AND ADOPTED this 1st day of July, 1986.
ATTEST:
CL-C-"4-7
Chief Deputy City Clerk
i91AA,
MAYOR
I hereby certify that the foregoing Resolution No. 86 -2446 was adopted
at a regular meeting of the City Council held on the 1st day of July, 1986, by
the following vote:
AYES: Councilmen- Gillanders, Swain, Atkins
NOES: Councilmen-None
ABSENT: Councilmen - Dennis, Froehle