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RESOLUTION NO. 92 -3163
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 1992 -93
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, 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 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.
POLICY: The City of Temple City operates its pooled idle cash
investments under the Prudent Man Rule (Probate Code 16040).
This affords a broad spectrum of investment opportunities 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. Consistent with this
factor, investments are made under the terms and conditions of
Sections 53600 -53684 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.
RESOLUTION NO. 92 -3163 PAGE 2
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
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 Fiscal Year 1992 -93 in compliance with Section
53646 (A) of the Government Code of the State of California.
APPROVED AND ADOPTED this 16th day of June, 1992
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RESOLUTION NO. 92 -3163
PAGE 3
I, hereby certify that the foregoing Resolution, Resolution
No. 92 -3163 was duly adopted by the City Council of the City of
Temple City at a regular meeting held on the 16th day of June,
1992, by the following vote:
AYES: Councilmember- Breazeal, Budds, Manning, McGowan
NOES: Councilmember -None
ABSENT: Councilmember- Wilson