HomeMy Public PortalAboutResolution 90-29701
RESOLUTION NO. 90 -2970
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 1990 -91
WHEREAS, the California State Legislature passed legislation
during the 1984 session requiring the filing of an annual State-
ment of Investment Policy by local public agencies: and
WHEREAS, 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
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
funds and restricted monies and to outline a policy for
maximizing the efficiency of the cash management system.
Ultimate investment goal is the protection of cash invest-
ments.
OBJECTIVE: The cash management system of the City of Temple
City is designed to accurately monitor and forecast expendi-
tures 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 li-
quidity.
POLICY: The City of Temple City operates its pooled idle
cash investments under the Prudent Man Rule (Civil Code
2261). This affords a broad spectrum of investment opportu-
nities so long as the investment is deemed prudent and is
permissible 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. Con-
sistent with this factor, investments are made under the
terms and conditions of Sections 53600 -53684 of the Govern-
ment 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.
Resolution No. 90 -2970 Page 2
Certificates of deposit, savings accounts and interest
bearing active deposits are insured or collateralized to the
degree consistent with or exceeding existing law or regula-
tion.
Most investments are highly liquid, with the exception of
collateralized or insured term certificates of deposit
issued by banks and savings and loans. Certificate maturi-
ties are selected to anticipate cash needs, thereby obvia-
ting 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 limited to maturities of one year or less.
To maximize investment income, the City of Temple City uses
all available, economically feasible investment aids. Eco-
nomic 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 Fiscal Year 1990 -91 in compliance with Section
53646 (A) of the Government Code of the State of California.
APPROVED AND ADOPTED this 3rd day of July, 1990.
J ..r‘e���
Mayor
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Resolution No. 90 -2970 Page 3
I, hereby certify that the foregoing Resolution, Resolu-
tion No. 90 -2970 was duly adopted by the City Council of the
City of Temple City at a regular meeting held on the 3rd day of
July, 1990, by the following vote:
AYES: Councilmember- Froehle,Manning,Wilson,Breazeal
NOES: Councilmember -None
ABSENT: Councilmember- McGowan