HomeMy WebLinkAboutCC RES 85-0440
m
RESOLUTION N0. 85- 44
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA, ADOPTING
A POLICY FOR THE INVEST1�iE'NT OF CITY OF
PALM DESERT FU:�1DS
WHEREAS, Section 53646 of the State of California ��overnment
Code has been amended to require the annual review and adoption of
an investment policy statement; and
LVHEREAS, said investment policy has been written in compliance
with all applicable la.ws and in accordance with �uidelines provided
by the California rJiunicipal Treasurers Association; and
�9HEREAS, the City of Palm Desert Finance Committee, comprised
of the �Iayor, City b7anager and Finance Director, has reviewed the
proposed policy;
NOVJ, THEREFORE, BE IT RESOLVED by the City Council of the City
of Palm Desert, California, as follows:
1. That the policy statement attached hereto as Exhibit "A"
is adopted; and
2. That the policy will be examined and considered for
readoption each January.
PASSED, APPROVED, and ADOPTED at a regular meetin� of the Palm
Desert Ci.ty Council held �n this 13th day of June , I985, by
the following vote, to wit:
AYES: BENSON, JACKSON, KELLY, �h'ILSON AND S�VYDER
NOES : NOI3E
A$SENT: NONE
ABSTAIN: NONE
�- ,
C G � � � � C, � �GC� -c. � �� � --,�
�UALTER H. SNYDER, '�4AY0
ATTEST:
�� /'�,/�/9
SHEILA R.
CITY CLERK
G
mf
�
CITY OF PALM DESERT
INVESTMENT POLICY
1. PURPOSE
Exhibit A
This Statement is intended to provide direction for the investment of the City's
temporary idle cash. The City's ultimate investment goal is to enhance the
economic condition of the City while insuring the safety of funds invested and
assuring that money is always available when needed.
2. OBJECTIVES
The City strives to maintain the level of investment of all idle funds as near
100� as possible, through the optimum operation of its cash management system
which is designated to accurately monitor and forecast expenditures and revenue.
The City attempts to obtain the highest yield on its' investments consistant with
preservation of principal and liquidity.
3. DELEGATION OF AUTHORITY
The City invests in the spectrum of instruments allowable under the Government
Code Section 53600 et seq. of the State of California. The City Council delegated
the authority to invest to the City Treasurer, or his delegate, in Chapter 3.08
section .010 of the Palm Desert Municipal Code.
4. INVESTMENT INSTRUMENTS
The City invests in the following investment instruments as approved by the Calif-
ornia Government Code:
- Securities of the U.S. Government or its Agencies
- Local Agency Investment Fund (L.A.I.F.)
- Certificates of Deposit (Time Deposits, C.D.'s)
- Negotiable Certificates of Deposit
- Other investments that are, or may become, legal investments
through the State of California Government Code and with prior
approval of the City Council.
5. POLICY CRITERIA FOR SELECTING INVESTMENTS, IN ORDER OF PRIORITY
A) SAFETY
Safety and the minimizing of risk associated with investing refers to attempts
to reduce the potential for loss of principal, interest or a combination of the
two. The first level of risk control is found in state law which restricts the
particular type of investments permissable for municipalities. The second level
of risk control is reduction of default risk by investing in instruments that
appear upon examination to be the most credit worthy. The third level of risk
control is reduction of market risk by investing in instruments that have
maturities coinciding with dates of disbursement, thereby eliminating risk of
loss from a forced sa1e. The City only invests in those instruments that are
considered very safe.
(1)
Exhibit A � ' ,
B) LI UIDITY
The City utilizes Local Agency Investment Fund for such purposes whereby the
City may liquidate all or any portion of the funds invested within 24 hours
with no penalty. The City invests in Time Certificates of Oeposits issued by
banks and savings and Toan companies, whose maturities are selected in antici-
pation of disbursement needs, thereby obviating the need for forced liquida-
iion or lost interest penalties.
C) YIELD
Yield is the potential dollar earnings an investment can provide, and also is
sometimes described as the rate of return. The City attempts to obtain the
highest yield possible when selecting an investment.
6. SELECTION OF INVESTMENT CONTACTS
The City maintains a'Bid List' which contains various banks, savings and loans
and brokers. When the City has funds available, letters are sent requesting bids
from institutions on the List, each bidding institution is reviewed by the
Treasurer for their relative strength and safety features.
1. INVESTMENT CONTROLS
The City Treasurer oversees all the City's investments.
8. INVESTMENT REPORTS
A) The Treasurer annually renders a Statement of Inves':�ent Policy to the City
Council for their approval.
6) The 7reasurer renders a monthly investment report to the City Manager and
City Council showing the type of investment, institution, date of maturity,
amount of deposit and interest earnable.
9. INVESTMENT AUDITS
Annaully, there is an external audit of the City's investment activity to assure
compliance with all applicable laws and policies.
10. INVESTMENT/FINANCE COMMITTEE
The City utilizes a Finance Committee, comprised of the Mayor, City Manager and
Finance Director, to insure stability and constant information flow as it relates
to investments and other finance activities.
i2)