HomeMy Public PortalAboutResolution 94-3337RESOLUTION NO. 94 -3337
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
1994 -95
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.
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 invest, _-nt incc+-re. the City of Temple City uses all available, economically feasible
investment aids. Econ z z various money markets are monitored in order to assess
RESOLUTION NO. 94 -3337 PAGE 2
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 1994 -95 In compliance with Section 53646 (A) of the Government Code
of the State of California.
APPROVED AND ADOPTED this 21st day of June 1994
MAYOR
ATTEST:
I, hereby certify that the foregoing Resolution, Resolution No. 94 -3337 was duly adopted by the
City Council of the City of Temple City at a regular meeting held on the 21st day of June, 1994, by the
following vote:
AYES: Councilmember- Gillanders, Souder, Wilson, Breazeal, Buda.
's
Councilmember -None
ABSENT: Councilmember -None
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