HomeMy WebLinkAboutCC RES 97-008_ �
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RESOLUTION NO. 97-8
A RESOI,UTION OF THF, CITY COUNCII, OF THF,
CITY OF PALM DESERT, CALIFORNIA, AMENDING THE POLICY
FOR THE INVESTMENT OF CITY OF PALM DESERT FUNDS.
WHEREAS, Section 53646 of the State of California Government Code has been
amended to require the annual review and adoption of an inveshnent policy statement; and
WHEREAS, said investment policy has been written in compliance with all applicable
laws and in accordance with guidelines provided by the Municipal Treasurers' Association of the
United States and Canada; and
WHEREAS, the City of Palm Desert Finance Investment Committee comprised of the
Mayor, Mayor Pro-Tempore, City Managcr, City Attorncy, Financc Director, Invcshnent
Manager, other members of City Staff and citizens at large, have revie�ved and approvcd the
proposed policy.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Desert,
California, as follows:
That the policy statement attached hereto as Exhibit "A" is adopted; and
2. That the policy be examined and considered for readoption each January.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the
City of Palm Desert, California, held this 23rd day of January, 1997, by the following vote, to
wit:
AYES: Benson, Crites, Snyder, Spiegel, Kelly
NOES: None
ABSENT: Nonc
ABSTAIN: Nonc
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i
SHEILA R. G1L�IGAN, �I'�' CLERK
CITY OF PALM DESER'I�CALIFORNiA
�r � - g
CITY OF PALM DESERT
and
PALM DESERT REDEVELOPMENT AGENCY
S�'ATEMENT OF INVESTMENT POLIC
ADOPTED BY RESOLUTION: January 23, 1997
CITY OF PALM DESERTlPALM DESERT REDEVELOPMENT AGENCY
Statement of Investment Policy
TABLE OF CONTENTS
P�
Introduction..................................................................1
Scope........................................................................1
InvestmentObjectives ..........................................................1
A. Safety ............................................................1
B. Liquidity ..........................................................2
C. Yield .............................................................2
AuthoritytoInvest Funds .......................................................2
InvestmentiFinance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
InternalControl ...............................................................3
Ethics and Conflict of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Evaluation of Investment Officer Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Authorized Financial Dealers & Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
AuthorizedInvestments .........................................................4
InvestmentPools ..............................................................6
Safekeeping af Securities ........................................................6
Diversification................................................................6
MaximumMaturities ...........................................................7
BondProceeds ................................................................7
ReportingRequirements ........................................................7
InvestmentPolicy Adoption .....................................................7
InvestmentPoGcy Review .......................................................7
Policy Statement on Collateralized Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule I
Policy Criteria for Entering Into a Money Market Fund . . . .. . . . . . . . . . . . . . . . . Schedule II
Policy Criteria for Selecting BrokerlDealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule III
Firms Authorized to Cooduct Investment Transactions . . . . . . . . . . . . . . . . . . . . Schedule IV
Chart of Authorized Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule V
Glossary
CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
. Statement of Investment Policy
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The policy and practices of the City of Palm Desert and the Palm Desert Redevelopment Agency are
based upon state law, ciry ordinances, prudent money management and the "prudent person "
standards. The primary goals of this policy are to invest public funds to:
Meet the daily cash flow needs of the City and the Redevelopment Agency.
2. Comply with all laws of the State of Calrfornia regarding the investment of public
funds.
3. Achieve a reasonable rate of return while minimizing the potential for capital losses
arising from market changes or issuer default.
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The investment policy applies to all funds under the control of the Finance Director/City Treasurer
of the City of Palm Desert and the Palm Desert Redevelopment Agency, including but not limited to
the general revenues of the City/Agency, enterprise fund revenues, proceeds of bond sales and debt
service revenues, trust funds in the custody of the Finance Director/Treasurer and any other funds
under his control. These funds are accounted for in the comprehensive annual financial reports of the
City of Palm Desert and the Palm Desert Redevelopment Agency.
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A. �afety of Princi�al
Safety of principal is the City/Agency's foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure that capital losses resulting
from institution default, broker-dealer default, or the erosion of mazket value are avoided. The
City/Agency shall seek to preserve principal by mitigating the two types of risk: credit risk
and market risk.
1. Credit risk, defined as the risk af loss due io failure of the issuer of a security, shall be
mitigated by investing in only the tughest quality securities (see authorized
im�estrnents) and by diversifying the investinent portfolio so that the failure of any one
issuer would not unduly harm the City/Agency's cash flow.
2. Market risk, defined as the risk of market vatue fluctuations due to overall changes in
the general level of interest rates, shall be mitigated by structuring the portfolio so that
Rev: O1 /97
need to sell securities prior to maturity; and by prohibiting the taking of short
positions, that is, selling securities that the City/Agency dces not own. It is explicitly
recognized, however, that in a diversified portfolio, occasional measured losses may
occur, and must be considered within the context of overall investment return.
B. i u' '
Liquidity is the second most important objective of the investment program. The investment
portfolio shall remain sufficiently liquid to enable the City/Agency to meet all operating
requirements. At all times, at least 50% of the total portfolio shall be invested for periods of
three yeazs or less; at least 30% of the total portfolio shall be invested for two years or less;
at least 20% of the total portfolio shall be invested for one year or less. At no time will a
security in the portfolio mature in more than five years except bond reserve funds, bond
escrow funds and any funds approved by the Finance Committee or City Council to be
appropriate for a longer period.
C. Yield
The City/Agency portfolio shall be invested to attain a market average rate of return through
economic cycles, as long as it does not diminish the objectives of Safety and Liquidity. The
market rate of return is defined as the average retum on the one-year U.S. Treasury Bill.
Whenever possible and in a manner consistent with the objectives of safety of principal and
liquidity, a yield higher than the market rate of retum shall be sought.
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The City Council and Redevelopment Agency Board have appointed the City Finance Director as City
Treasurer responsible for undertaking investment transactions on behalf of the City/Agency. Unless
specifically designated by the City Council and Agency Board, the only officials authorized to
undertake investment transactions on behalf of the City/Agency are the Director of Financeffreasurer
and his/her designee. The Finance Director/Treasurer and Investment Manager will observe, review
and react to the changing conditions that affect the investrnent portfolio. They will meet on a regular
basis to discuss current market conditions, future trends and how each of these affects the investment
portfolio and the City/Agency. The Finance Director/Treasurer and Investment Manager shall
establish a system of controls to ensure compliance with the CityJAgency's investment policy.
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The City utilizes a Finance Committee, composed of the Mayor, Mayor Pro-Tempore, City Manager,
Redevelopment Agency..Executive Director, Finance Director, Investment Manager, City Attomey
and Citizen(s) appointed by the City Council, to insure stability and constant information flow as it
relates to investment and other finance activities. They will meet monthly to discuss issues relating
to the City/Agency's investment portfolio. Items may include the suitability of current investment
policies and procedures, current and proposed strategies, investment transactions since the last
meeting as well as other topics affecting the sources and uses of funds in the portfolio.
Rev: O l /97 2
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The Finance Director, is responsible for ensuring compliance with the City/Agency investment
policies as well as establishing intemal controls designed to prevent losses due to fraud, employee
error, misrepresenting by third parties, or unanticipated changes in financial markets. A written policy
on the specific internal controls will be reviewed by the Finance Committee.
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Officer and employees involved in the investment process shall refrain from personal business activity
that could conflict with proper execution of the investment program, or which could impair their
ability to make impartial investment decisions. Employees and investment officers shall disclose any
material financial interests in financial institutions that conduct business within this jurisdiction, and
they shall further disclose any large personal financiaUinvestment positions that could be related to
the performance of the City/Agency's portfolio. Employees and officers shall subordinate their
personal investment transactions to those of the City/Agency, particularly with regard to the timing
of purchases and sales, and shall avoid transactions that might impair public co�dence in the City's
ability to govem effectively.
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The actions of City/Agency investment officers in the performance of their duties as managers of
public funds shall be evaluated using the following "prudent person" standazd applied in the context
of managing the overall portfolio:
Investments shall be made with j�dgment and care, under circumstances then
prevailing, which persons of prudence, discretion, and intelligence exercise in the
professional management of their business a�airs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived.
City/Agency investment officers acting in accordance with written policies and the "prudent person"
standard and exercising due diligence shall be relieved of personal responsibility for an individual
security's credit risk or market price changes, provided that substantial deviations from expectations
are reported by the Treasurer to City Manager and the Finance Committee within three days of
discovery. Mutually agreeable remedial action will be taken by the Treasurer and reported to the next
Finance Committee meeting.
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The City/Agency shall �ansact business only with banks and savings and loans, and with investment
secwities dealers which/who comply with Schedule III (Policy Criteria for Selecting Broker/Dealers)
attached. The Finance Director/Treasurer will maintain a list of financial institutions authorized to
provide investment services. He will also maintain a list of approved security brokers/dealers selected
Rev: O l /97 3
by credit worthiness who are authorized to provide investment services to the City/Agency. The
dealers must be primary dealers regularly reporting to the Federal Reserve Bank. Exceptions to the
primary dealer rule may be made with the approval of the Investment/Finance Committee, provided
they are consistent with California Government Code Section 53601.5.
All primary financial institutions and broker/dealers who desire to become qualified bidders for
investment transactions must supply an audited financial statement, and U4 Form for the broker,
completed broker/dealer questionnaire (see Schedule III) and certification of having read the
CityiAgency's investment policy. All secondary financial institutions and broker/dealers who desire
to become qualified bidders for investment transactions must supply an audited financial statement,
proof of National Association of Securities Dealers certification, trading resolution, proof of state
registration, completed broker/dealer questionnaire (see Schedule 1II), U4 Form for the broker and
certification of having read the City/Agency's investment policy. The Finance Director/Treasurer
shall determine if they are adequately capitalized, make mazkets on securities appropriate to the
City/Agency's needs and are recommended by managers of portfolios similar to the Ciry/Agency.
The Finance Director/Treasurer shall submit his findings and recommendations to the
Investment/Finance Committee. The committee will determine which broker/dealers will be
authorized to trade with the City/Agency.
An annual review of the financial condition and registration of qualified bidders will be conducted.
A current audited financial statement is required to be on file for each financial institution and
broker/dealer in which the City/Agency invests.
The City/Agency shall at least annually send a copy of the current investment policy to all financial
institutions and broker/dealers approved to do business with the City/Agency. Confumation of receipt
of this policy shall be considered evidence that the dealer has read and understands the CitylAgency's
investment policy and will recommend and execute only transactions suitable for and in compliance
with the City/Agency's investment policy.
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The City/Agency is authorized by California Government Code Section 53600, et. seq. to invest in
specific types of securities. The City/Agency has further limited the types of securities in which we
may invest. Any securiry not listed, is not a valid investment for the City/Agency. The concise list
of approved securities is as follows:
A. United States Treasury Bills, Bonds, and Notes, or those for which the full faith and
credit of the United States are pledged for payment of principal and interest. There is
no limitation as to the percentage of the portfolio which can be invested in this
category.
B. Obligations issued by United States Govemment Agencies such as, but not limited to,
the Government National Mortgage Association (GNMA), the Federal Farm Credit
Bank System (FFCB), the Federal Home Loan Bank (FHLB), the Federal National
Mortgage Association (FI�iMA), the Federal Home Mortgage Corporation (FHLMC),
the Student Loan Marketing Association (SLMA), and the Tennessee Valley Authority
Rev: O 1/97
4
(TVA). Although there is no percentage limitation of the dollaz amount that can be
invested in these issuers, the "prudent person" rule shall apply for any single agency
name.
C. Bills of exchange or time drafts drawn on and accepted by a commercial bank,
otherwise known as bankers acceptances which are eligible for purchase by the
Federal Reserve System, may not exceed 270 days to maturity or 40% of the market
value of the portfolio. No more than 30% of the mazket value of the portfolio may be
invested in banker's acceptances issued by any one bank.
D. Commercial paper of prime quality and ranked P 1 by Moody's Investor Services and
A1 by Standard and Poor's and issued by a domestic corporation having assets in
excess of $500 million and having an"A" or better rating on its long term debt as
provided by Moody's or Standard and poor's. Purchases of eligible commercial paper
may not exceed 180 days to maturity. Purchases of commercial paper may not exceed
15% of the market value of the portfolio. No more than 5% of the market value of the
portfolio, or $5,000,000 or 10% of the issuers' outstanding paper may be invested in
commercial paper issued by any one corporation.
E. Medium Term Notes (MTNs) issued by corporations organized and operating within
the United States. MTNs eligible for pwchase shall be rated "A" or better by Standard
and Poor's or by Moody's rating services. MTNs with an"A" rating shall be limited
to 24 months maximum maturity; "AA" rated MTNs shall be limited to 36 months.
The aggregate total of all purchased MTNs may not exceed 30% of the mazket value
of the investment portfolio. No more than 5% of the market value of the portfolio may
be invested in notes issued by any one corporation. Commercial paper holdings shall
be considered when calculating the maximum percentage of any issuer name.
F. The Loca] Agency Investment Fund (LAIF), established by the State Treasurer for the
benefit of local agencies and identified under Govemment Code Section 16429.1, is
authorized up to the maximum amount permitted by State Law.
G. The City/Agency may invest in "shares of beneficial interest" issued by diversified
management companies which invest only in direct oblitations in United States
Treasury bills, notes and bonds, and repurchase agreements with a weighted average
of 60 days or less. They must be rated in the highest-rating category of at least two
nationally-recognized rating services (e.g., Moody's P-1 or Standard and Poor's
AAA), and have a minimum of $500 million in assets under management, and comply
with Schedule II (Policy Criteria for Entering Into a Diversified Management
Company) attached. Ihe purchase price may not include commissions.
H. T'he City/Agency may place funds in inactive deposits with Banks and Savings and
Loans with a branch within California that have a rating of at least "A-1" from the
Financial Directnry or an equivalent rating from another generally recognized
authority on ratings, and have an Equity to Total Assets ratio of at least 4%. No more
than 15% of the City/Agency portfolio, exclusive of investments in government
Rev: O l /97 5
agency issues and the State Treasurer's Local Agency Investment Fund, shall be
placed with any one financial institution. All deposits shall be secured in accordance
with Sections 53651 and 53652 of the Califomia Govemment Code and comply with
Schedule I(Policy Statement of Collateralized Time Deposits) attached. If deposits
aze not collateralized, the maximum placed at any one institution will be $100,000.
The maximum amount of collateralized inactive deposits placed at any one institution
shall not constitute more than 15% of the total assets of the institution or $5,000,000,
whichever is less, and shall not exceed the total shareholders' equity of the issuing
institution.
INVESTMENT POOLS
The City/Agency will investigate all local government investrnent pools (LGP) and money market
mutual funds prior to investing and periodically thereafter while the City/Agency is invested in the
pool. '
All money mazket mutual funds and LGP's, except the Local Agency Investment Fund (LAIF) of the
State of California, must meet the criteria in Schedule II of this policy which includes providing a
written statement that it meets the requirements in Sections 53601 and 53635 of the Califomia
Government Code and have the highest rating from two national rating agencies. The fund must
maintain a daily principal per share value of $1.00 per share and distribute interest tnonthly. The
fund's investments shall be limited to direct obligations in United States Treasury bills notes and
bonds, and repurchase agreements.
LAIF is authorized under provisions in Section 16429.1 of the California Govemment Code. The
City/Agency's participation in the pool was approved by the City Council and the Redevelopment
Agency Board on December 12, 1981, by Resolution 81-161. It is a permitted investment of the
City/Agency even though it does not comply with all of the items listed in Schedule II, "Criteria for
Entering Into a Money Mazket Fund."
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To protect against potential losses by the collapse of individual securities dealers, all securities owned
by the City/Agency shall be held in safekeeping by a third party bank trust department acting as agent
for the City/Agency under the terms of a custody agreement executed by the bank and the
City/Agency. All secwities will be received and delivered using standard delivery-versus-payment
(DVP) procedures. The third party bank wstee agreement must comply with Section 53608 of the
Califomia Government Code. No outside brokerldealer or advisor may have access to City/Agency
funds, accounts or investments, and any transfer of funds to or through an outside broker/dealer must
be approved by the Finance Director/Treasurer.
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The City/Agency will diversify its investments by security type and investment. With the exception
of bond reserve funds, bond escrow funds, and any other funds approved by the Finance Committee
or the City Council, at all times at least 50% of the total portfolio shall mature in three yeazs or less;
Rev: O 1 /97 6
at least 30% of the total portfolio shall mature in two years or less; at least 20% of the portfolio shall
mature in one year or less.
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The Ciry/Agency will attempt to match its investments with anticipated cash flow requirements.
Unless matched to a specific cash flow, as approved by the Finance Committee, the City/Agency will
not directly invest in securities maturing more than five years from the date of purchase. Bond reserve
funds, bond escrow funds, and any other funds approved by the Finance Committee or the City
Council may be invested in securities exceeding five years if the maturities of such investments are
made to coincide as neazly as possible with the expected use of the funds.
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The City/Agency will direct the investment of proceeds on bonds issued as instructed in the bond
indenture. Securities authorized by the bond indenture that are not authorized by the City/Agency's
investment policy will only be used if they are specificially approved by the Finance Committee. All
securities will be held in third-party safekeeping with the bond trustee, and all delivery-versus-
payment rules will apply. Fees will be collected annually to compensate for administration costs.
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The Finance Director/Treasurer shall render a report of investment activity to the City Council,
Agency Board and the Finance Committee quarterly within 30 days following the end of the quarter.
The report will include the type of investment, issuer, date of maturity, and par and dollar amount
invested, on all securities, investments and monies held by the City/Agency. The report shall state
market value and the source of the valuation, and state that the portfolio is in compliance with the
policy or the manner in which it is not in compliance. The report will also include a statement
denoting the ability to meet the City/Agency's expected expenditure requirements for the next six
months or provide an explanation as to why sufficient money is not available. The report date will
be the actual month-end date unless the last day of the month falls on a weekend or legal holiday. If
the last day of the month is a weekend or legal holiday, the date of month-end report will be the last
business day prior to the end of the month. '
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The Finance Director/Treasurer shall submit an annual Statement of Investrnent Policy to the Finance
Committee and then the City Council and Redevelopment Agency Board for their approval. This
statement shall be filed with the Finance Committee by January 31 of each year.
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The City/Agency's independent Certified Public Accountant shall annually review and make
recommendations regarding the City/Agency investment policies to the extent considered necessary
as required by generally accepted auditing standards as they relate to the annual financial audit which
includes cash and investments.
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CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
POLICY STATEMENT ON COLLATERALIZED TIME DEPOSITS
SCHEDiJLE� I
Before the Treasury can place a time deposit with a local bank or savings and loan, the following
criteria must be met:
The bank must provide us with an executed copy of the "Contract for Deposit for Moneys"
as specified in Section 53649 of the California Government Code.
2. The interest rate on the Time Certificate of Deposit must be competirive with rates offered by
other banks and savings and loans residing in Riverside County and must exceed the interest
rate for treasury bills for a similar maturity period.
3. For investments less than $100,000, FDIC insurance will be su�cient without requiring any
collateral to be pledged with the Federal Reserve to secure the public fund deposit.
4. For investments exceeding $100,000, there may be a waiver of collateral for the first
$ l 00,000 deposited, and all of the funds placed on deposit must be collateralized by 105% of
U.S. Treasury or Federal Agency securities, or by 150% of mortgages having maturities less
than five years in accordance with Section 53652 of the California Government Code. The
City/Agency must receive confirmation that these securities have been pledged in repayment
of the time deposit. The securities pledged must be maintained at a ciurent market value 10%
greater than the dollaz amount of the deposit.
5. The Ciry/Agency must be given a current audited financial statement for the financial yeaz just
ended as well as the most recent quarterly statement of financial condition. The financial
reports must both include a"statement of financial condition" as well as an"income
statement" depicting current and prior year operations.
6. The City/Agency will not place a fund deposit for more than $5,000,000, or 10% of the assets
of the institution, whichever is less.
7. The City/Agency must receive a certificate of deposit which specifically expresses the terms
governing the transaction, (i.e., the period of time, name of depositor, interest rate, etc.).
8. All time certificates must have a maturity period not exceeding one year from the date of
deposit with quarterly payments.of interest based upon the stated interest rate.
9. The City/Agency must also receive a letter from the comptroller and/or treasurer of the bank
at the time the deposit is made, that there is no known pending financial disclosure or public
announcement of an adverse financial event involving the bank or savings and loan, nor is
there any knowledge that a conflict of interest situation exists with any City/Agency official,
officer or employee at the time the bank is receiving this deposit. The City/Agency has a
Rev: O1l97 Schedule I
fiduciary responsibility to make prudent investment of public funds, and to assure our
investment practices aze absent of any financial inducement or conflict in interest whatsoever.
10. Time deposits will only be made with qualified banks and savings and loans having branch
office locations within Riverside County. However, time deposits with a bank or savings and
loan must be centralized at one designated office location rather than making separate deposits
with each branch office.
Rev: 01/97 Schedule I
CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
POLICY CRITERIA FOR ENTERING INTD A DIVERSIFIED MANAGEMENT COMPANY
SCHEDULEII
The firm must meet all requirements set forth in the Californa Government Code Sections
53601 and 53635.
2. The firm must provide in writing a statement on the fund's letterhead that the fund meets the
statutory requirements of Califomia law (i.e., Sections 53601 and 53635 of the California
Government Code).
3. The fund must provide evidence that it has been registered with SEC and has "AAA" ratings
from Standard & Poor's and Moody's.
4. The fund's invest�nents shall be limited to direct obligations in U.S. Treasury bills, bonds or
notes and repurchase agreements, to the extent allowed by law, and shall maintain weighted
average maturities within their portfolio of less than 60 days.
5. The fund must provide us copies of their portfolio reports and newsletters and shall provide,
at least month-end, a complete listing of securities within the fund's portfolio.
6. The fund shall provide us a current prospectus before our participation in the fund.
7. The fund cannot engage in hedging strategies, WI purchases, options, future, reverse-
repurchase agreements, or security lending.
8. The fund must maintain daily, a principal per shate value of $1.00 per share.
9. The fund shall provide information on who serves as their custodial bank.
10. The fund shall provide us at least annual financial statements on the fund's financial condition
and performance.
I 1. The fund shall provide us wire instructions for the purchase and redemption of shares and
must be able to distribute interest earnings to us on a monthly basis.
12. Unless the fund is more than five years old, the CityJAgency is to be given its performance
history since the inception of the fund.
Rev: O1/97 Schedule II
13. The City/Agency is also to be given the date the fund was established, the total assets
currently under management, the recent 12 months' history as to either the growth or decline
in assets under management, and whether or not the fund is assessing 12B-1 management fees.
It would also be beneficial if the fund could provide us performance histories on competitor
funds, should they be available.
Rev: O1/97 Schedule II
CITY OF PALM DESERT �
PALM DESERT REDEVELOPMENT AGENCY
POLICY CRITERIA FOR SELECTING BROKER/DEALERS
SCHEDULE III
1. All primary financial institurions and broker/dealers who desire to become qualified bidders
for investment transactions must supply an audited financial statement, and U4 Form for the
broker, completed broker/dealer questionnaire (made a part of this Schedule) and certification
of having read the City/Agency's investment policy. All secondary financial institutions and
broker/dealers who desire to become qualified bidders for investment transactions must supply
an audited financial statement, proof of National Association of Securities Dealers
certification, trading resolution, proof of state registration, completed brokeridealer
questionnaire (made a part of this Schedule), U4 Form for the broker and certification of
having read the CitylAgency's investment policy.
2. The net capital position of the firm shall be in excess of $100 million.
3. The Finance Director/Treasurer's intent is to enter into a long-term relationship. Therefore,
the integrity of the firm and the personnel assigned to our account is of primary importance.
4. The firm must state in writing its willingness to be bound by the City/Agency's written
Investment Policy Guidelines.
�. The firm must provide an active secondary market for the securities it sells.
6. The firm must specify the types of securities it specializes in and will be made available for
our account.
7. It is important that the firm provide related services that will enhance the account relationship
which could include:
a) An active secondary mazket for its securities.
b) Internal credit reseazch analysis on commercial paper, banker's acceptances and other
securities it offers for sale.
c) Be willing to trade securities on our portfolio.
d) Be capable of providing market analysis, economic projections, newsletters.
e) Provide market education on new investment products, security spread relationships,
graphs, etc.
8. The firm must be willing to provide us annual financial statements.
9. If requested, the firm must be willing to provide us a list of local govemment clients or other
references, particularly those client relationships established within the State of California.
Rev: O1/97 Schedule III
10. The City/Agency is prohibited from the establishment of a broker/dealer account for the
purpose of holding the City/Agency's securities. All securities must be subject to delivery at
the City/Agency's custodial bank.
11. Without exception, all transactions are to be conducted on a"delivery vs. payment" basis.
12. The broker/dealer shall be headquartered or have a branch office in California. Except for the
above, the CitylAgency will not conduct security transactions with any firm located out of
state.
13. The broker/dealer must have been in operation for more than 5 years, and must have net
capital in excess of $ l 00 million.
14. No business relationship shall be established with firms engaging in the sale of "exotic"
products. Exotic meaning "unusually high yields," no ready secondary market, "high price
volatility" on the security.
15. The firm must be registered with the State of California's regulatory agency.
16. No broker/dealer or security firm shall be selected who has, within any consecutive 48-month
period, made a political contribution in an amount exceeding the limitations contained in Rule
G-37 of the Municipal Securities Rulemaking Board, to the local treasurer or any member of
the City Council or the Redevelopment Agency governing board or to any candidate for these
offices.
Rev: O1/97 Schedule III
[TEXT OF COVER LETTER FOR BROKER/DEALER QUESTIONNAIRE]
Thank you for your interest in becoming a qualified broker/dealer for the City of Palm
DesertlPalm Desert Redevelopment agency.
Along with this letter you will find a copy of the Investment Policy for the City/Agency and our
"Broker/Dealer Questionnaire and Certification" form. Please read the Investment Policy and
completely fill out the questionnaire and certification. ffyour firm is a primary dealer return the
questionnaire along with an audited financial statement, and a copy af the U4 form for the broker
or brokers who will be trading with us. ff your firm is a secondary financial institution, please
submit all of the above plus proof of National Association of Securities Dealers certification,
trading resolution and proof of state registration.
The documeats submitted will be reviewed, the firm will checked for adequate capitalization,
appropriate services for the city's needs and the recommendation of other government agencies.
Then the application will be submitted to the Finance and Investment Committee for approval.
If you have any questions, please give me a call at (619) 346-0611 extension 320, or call Jean
Ruth at extension 383.
Sincerely,
Paul S. Gibson
Finance Director/Treasurer
enclosure
Rev: O1/97 Schedule IIZ
City of Palm Desert
Palm Desert Redevelopment Agency
BROKER DEALER QUESTIONNAIRE AND CERTIFICATION
PLEASE NOTE: Completion of this questionnaire and certification dces not guarantee that the
applicant will be approved to do business wiih the City of Pa(m Desert or the Palm Desert
Redevelopment Agency. It is merely the first step in the selection process.
1. Name of Firm
2. Address
3. Telephone Local ( 1 National Headquarters� .�
4. Primary representative:
Name
Title
Manager.
Name
Title
Telephone1 1 Telephone � }
5. Are you a recognized primary dealer in Government Securities? [ ]yes [ ]no
If yes, how long has your firm been a primary dealer?
(years)
6. What was your ficm's total volume in U.S. Government treasury and agency securities trading
last year?
Firm-wide $
Your office $
Number of transactions from your office
7. Which of the following instruments are offered regularly by your trading desk?
[ ] T-bills
[ ] T-notes/bonds
[ ] Mutual Funds
[ ] Agencies (specify)
[ j Banker's Acceptances
[ ] Commercial Paper
[ J Medium Term Notes
[ ] Certificate of Deposits
Rev: O1/97 Schedule III
City of Palm DesertlPalm Desert Redevelopment Agency
Broker Dealer Questionaire and Certification 12/20/96
Page 2
Name of Firm:
8. Identify all personnel who will be trading with or quoting levels to the City.
Name Title # of years in # of years Telephone
Institutional Sales with Firm
9. Which of the above persannel have read the City's urvestment policy?
10. Please identify your most closely comparable governmental local agency clients in our
geogaphical area.
Entity
Contact Person Telephone Client since
11. Are you a Broker [] or a Dealer []?
12. What makes you the best broker/dealer for the City of Palm Desertl Palm Desert
Redevelopment Agency? Why should we want to deal with you?
(You may use an additional sheet of paper if necessary.)
13. Describe the capital line and trading limits of the office that would conduct business with the
City of Palm Desert/Palm Desert Redevelopment Agency.
14. Have any of your public sector clients ever sustained a loss on a securities transaction arising
from a misunderstanding or misrepresentation of the risk characteristic of a particular instrument?
If yes, please explain.
Rev: O1J97 Schedule III
City of Palm DesertlPalm Desert Redevelopment Agency
Broker Dealer Questionaire and Certificati�n 12/20/96
Page 3
Name of Firm:
15. Has any public-sector clierrt ever claimed in writing that your firm was responsible for
investment Iosses? If yes, p[ease explain.
16. Has your firm, or local office, ever been subject to a regulatory or statelfederal agency
investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale
of securities? If yes, please explain.
17. Has your firm consistently complied with the Federal Reserve Bank's capital adeyuacy
guidelines? Include certificated documentation of your curtent capital adequacy as measured by
the Federal Reserve Standards.
18. Does your firm participate in the S.I.P.C. insurance program or any other insurance programs
that will cover a municipality which invests in the investments listed in question 7 using D. V.P.
settlement? If yes, please explain coverage.
19. How many and what percentage of your transactions failed last month / last year7
20. What portfolio information do you require from your clients?
21. Please provide certified financial statements regarding your firm's capitalization.
22. Please provide samples of reseazch reports that yow firm regulariy supplies to public sector
clients.
23. What trade documentation will the City receive? (transaction information, confirmations,
statements, etc.) Please provide examples of each.
24. What training information will you provide to our employees?
Rev: 01/97 Schedule III
City of Palm DesertlPalm Desert Redevelopment Agency
Broker Dealer Questionaire and Certification 12/20/96
Page 4
Name of Firm:
CERTIFICATION
I hereby certify that I have personally read t6e City of Palm Desert/Palm Desert
Redevelopment Agency Investment Policy and the California Government Codes
pertaining to the investments of the City of Palm Desert/Paim Desert Redevelopment
Agency, and have implemented reasonable procedure� and a system of controls designed to
preclude imprudent investment activities arising out of t6e transactions conducted between
our firm and the City of Pelm Desert/Palm Desert Redevelopment Agency. All sales
personnel will be routinely informed of the City of Palm Desert/Palm Desert
Redevelopment Agency investment objectives, strategies and risk constraints whenever we
are so advised. We pledge to eiercise due diligence in informing the City Treasurer and
Inveshnent Manager of all foreseeable risks associates with financial transactions
conducted by our firm, I attest to the accuracy of our responses to yoar questionnaire.
Signed
Tide
Firm
Date
This certificatiQn must be counteraigned by the Company president or the senior person in
the govemment securities operations section.
Signed
Title
Firm
Date
Rev: O1f97 Schedule III
CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
FIRMS AUTHORIZED TO CONDUCT INVESTMENT TRANSACTIONS
SCHEDULE IV
The City/Agency is authorized to conduct investment security transactions with the following
investment firms and broker/dealers, many of which aze designated by the Federal Reserve Bank as
primary government dealers. Security transactions with firms, other than those appearing on this list,
are prohibited.
A. Firms designated by the Federal Reserve Banlc as Primary Government Dealers:
Bank of America NT & SA
Chase Securities, Inc.
Chemical Securities, Inc.
Citicorp Securities Markets, Inc.
Dean Witter Reynolds, Inc.
Merrill Lynch Government Securities, Inc.
Paine Webber, Inc.
Prudential Bache Securities, Inc,.
Lehman Government Securities, Inc.
Smith Bamey, Inc.
B. Other authorized firms:
Union Bank of California
The Bank of New York
Great Western Bank
Home Savings of America
Downey Savings
Glendale Federal Bank
Wells Fargo Banlc
Rev: O1/97 Schedule IV
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GLOSSARY
AGENCIES: Federal agency securities.
ASKED: The price at which securities are
offered. (The price at which a firm will sell a
security to an investor.)
BANKERS' ACCEPTANCE (BA): A draft
or bill or exchange accepted by a bank or trust
company. The accepting institution guarantees
payment of the bill, as well as the issuer.
BASIS POINT: One one-hundredth of a
percent (i.e., 0.01 %).
BID: The price offered by a buyer of
securities. (When you are selling securities,
you ask for a bid.)
BROKER: A bmker brings buyers and sellers
together for a commission. He does not take a
position.
CERTIFICATE OF DEPOSIT (CD): A time
deposit with a specific maturity evidenced by
a certificate. Large-denomination CD's are
typically negotiable.
COLLATERAL: Securities, evidence of
deposit or oiher property which a borrower
pledges to secure repayment of a loan. Also
refers to securities pledged by a bank to secure
deposits of public monies.
COUPON: a) The annual rate of interest that
a bond's issuer promises to pay the bondholder
on the bond's face value. b) A certificate
attached to a bond evidencing interest due on
a payment date.
DEALER: A dealer, as opposed to a broker,
acts as a principal in all transactions, buying
and selling for his own account.
DEBENTIJRE: A bond secured only by the
general credit of the issuer.
DELIVERY VERSUS PAYMENT: There
are two methods of delivery of securities:
delivery versus payment and delivery versus
receipt. Delivery versus payment is delivery of
secvrities with an exchange of money for the
securities. Delivery versus receipt is delivery
of securities with an exchange of a signed
receipt for the securities.
DISCOUNT:The difference between the cost
price of a security and its maturity when
quoted at lower than face value. A security
selling below original offering price shortly
after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest
bearing money mazket instruments that aze
issued at a discount and redeemed at maturity
for full face value (e.g., U.S. Treasury Bills).
DIVERSIFICATION: Dividing investment
funds among a variety of securities offering
independent retums.
FEDERAL CREDIT AGENCIES: Agencies
of the Federal government set up to supply
credit to various classes of institutions (e. g.
S&L's, Small business firms, students,
farmers, farm cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC): A Federal agency
that insures bank deposits, currently up to
$ l 00,000 per deposit.
FEDERAL FUNDS RATE: The rate of
interest at which Fed funds are traded. This
rate is currently pegged by the Federal Reserve
through open-market operations.
FEDERAL HOME LOAN BANKS
(FHLB): The institutions that regulate and
lend to savings and loan associations. The
Federal Home Loan Banks play a role
analogous to that played by the Federal
Rev: 01197
Glossary
Reserve Banks vis-a-vis member commercial
banks.
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA): FNMA, like
GNMA was chartered under the Federal
National MoRgage Association Act in 1938.
FNMA is a Federal corporation working under
the auspices of the Department of Housing and
Urban Development (HtID). It is the largest
single provider of residential mortgage funds
in the United States. Fannie Mae, as the
corporation is called, is a private stockholder-
owned corporation. The corporation's
purchases include a variety of adjustable
mortgages and second loans, in addition to
fixed-rate mortgages. FNMA's securities are
also highly liquid and aze widely accepted.
FNMA assumes and guarantees that all
security holders will receive timely payment of
principal and interest.
FEDERAL OPEN MARKET
COMMITTEE (FOMC): Consists of seven
members of the Federal Reserve Boazd and
five of the twelve Federal Reserve Bank
Presidents. The President of the New York
Federal Reserve Bank is a permanent member,
while the other presidents serve on a rotating
basis. The Committee periodically meets to
set Federal Reserve guidelines regarding
purchases and sales of Govemment Securities
in the open mazket as a means of influencing
the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The
central bank of the United States created by
Congress and consisting of a seven-member
Board of Governors in Washington, D.C.; l2
regional banks and about 5,700 commercial
banlcs aze members of the system.
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (GNMA or
Ginnie Mae): Securities influencing the
volume of bank credit guaranteed by GNMA
and issued by mortgage bankers, commercial
banks, savings and loan associations, and other
institutions. Security holder is protected by
full faith and credit of the U.S. Government.
Ginnie Mae securities are backed by the FHA,
VA or FMHM mortgages. The term "pass-
throughs" is often used to describe Ginnie
Maes.
LIQLTIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without
a substantial loss of value. In the money
mazket, a security is said to be liquid if the
spread between bid and asked prices is narrow
and reasonable size can be done at those
quotes.
LOCAL GOVERNMENT INVESTMENT
POOL (LGIP): The aggregate of all funds
from political subdivisions that are placed in
the custody of the State Treasurer for
investment and reinvesiment.
MARKET VALUE: The price at which a
security is trading and could presumably be
purchased or sold.
MARKET REPURCHASE AGREEMENT:
A written contract covering all future
transactions between the parties to repurchase-
reverse repurchase agreements that establish
each party's rights in the transactions. A
master agreement will often specify, among
other things, the right of the buyer-lender to
liquidate the underlying securities in the event
of default by the seller-borrower.
MATURITY: The date upon which the
principal or stated value of an investment
becomes due and payable.
OFFER: The price asked by a seller of
securities. (When you aze buying securities,
you ask for an offer.) See "Asked" and "Bid".
OPEN MARKET OPERATIONS:
Purchases and sales of govemment and certain
other securities in the open mazket by the New
Rev: O1l97 Glossary
York Federal Reserve Bank as directed by the
FOMC in order to influence the volume of
money and credit in the economy. Purchases
inject reserves into the bank system and
stimulate growth of money and credit: Sales
have the opposite effect. Open market
operations are the Federal Reserve's most
important and most flexible monetary policy
tool.
PORTFOLIO: Collection of securiites held
bv an investor.
PRIMARY DEALER: A group of
govemment securities dealers who submit
daily reports of mazket activity and positions
and monthly financial statements to the
Federal Reserva Bank of New York and are
subject to its informal oversight. Primary
dealers include Securities and Exchange
Commission (SEC)-registered securities
broker/dealers, banks and a few unregulated
firms.
PRUDENT PERSON RULE: An investment
standard. In some states, the law requires that
a fiduciary, such as a trustee, may invest
money only in a list of securities selected by
the custody state--the so-called "legal list". ln
other states, the trustee may invest in a security
if it is one which would be bought by a prudent
person of discretion and intelligence who is
seeking a reasonable income and preservation
of capital.
RATE OF RETURN: The yield obtainable on
a security based on its parchase price or its
current market price. This may be the
amortized yield to maturity; on a bond, the
current income return.
REPURCHASE AGREEMENT (RP or
REPO): A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed date. The security
"buyer" in effect lends the "seller" money for
the period of the agreement, and the terms of
Rev: 01/97
the agreement aze structured to compensate
him for this. Dealers use RP extensively to
fmance their positions. Exception: When the
Fed is said to be doing RP, it is lending money,
that is, increasing bank reserves.
SAFEKEEPING: A service to customers
rendered by banks for a fee whereby securities
and valuables of all types and descriptions are
held in the bank's vaults for protection.
SECONDARY MARKET: A market made
for the purchase and sale of ouutanding issues
following the initial distribution.
SECURITIES & EXCHANGE
COMMISSION: Agency created by Congress
to protect investors in securities transactions
by administering securities legislation.
SEC RULE 15C3-1: See "Uniform Net
Capital Rule".
TREASURY BILLS: A non-interest bearing
discount security issued by the U.S. Treasury
to finance the national debt. Most bills are
issued to mature in three months, six months,
or one year.
TREASURY BOND: Long-term U.S.
Treasury securities having initial maturities of
more than 10 years.
TREASURY NOTES: Intermediate-term
coupon bearing U.S. Treasury securities
having initial maturities of from one year to
ten years.
UNIFORM NET CAPITAL RULE:
Securiiies and Exchange Commission
requirement that member firms as well as
nonmember broker/dealers in securities
maintain a maximum ratio of indebtedness to
liquid capital of 15 to 1; also called net capital
rule and net capital ratio. Indebtedness covers
all money owed to a firm, including margin
loans and commitments to purchase securities,
Glossary
one reason new public issues are spread among
members of underwriting syndicates. Liquid
capital includes cash and assets easily
converted into cash.
YIELD: The rate of annual income return on
an investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the
current dollaz income by the current market
price for the security. (b) NET YIELD or
YIELD TO MATURITY is the current
income yield minus any premium above paz or
plus any discount from par in purchase price,
with the adjustment spread over the period
from the date of purchase to the date of
maturity of the bond.
Re��: O 1 /97 Glossary
RESOLUTION N0. 81- 161
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A RESDLUTION OF THE CITY COUNCIL OF THE CITY OF PALM OESERT.
CALIFORNIA. AUTHORIZING INYESTMENT OF CITY OF PALM OESERT
MONIES IN LOCAL AGENCY INVESTMENT F11N0.
NHEREAS. pursuant to Chapter 730 of the Statutes of 1976 Section
16429.1 was added to the Californla.Government Code to create a Local Agency
Investment Fund in the State T�easury for the deposit of money of a local agency
for purposes of investment by the State Treasurer; and.
_ NHEREAS� the City Councll does hereby find that the deposit and
withdrawal of money in the Local Agency Investment Fund tn accordance wlth the
pravisions of Sectlon 16429.1 of the Government Code for the purposes of invest-
ment as stated therein as tn the best interests of the Ctty of Palm Desert.
NOW TNEREFORE. BE IT RESOLVED that the City Council of the City �of
Palm Desert. California� does hereby authorize the deposit and withdrawal of City
of Palm Desert monies in the Local Agency Investment Fund in the State Treasury
in accordance with the provisions of Section 16429.1 of the Government Cade for
the purPose of investment as stated therein.
��;>.
BE IT FURTHER RESOLVED that the following City afficers or their
successors in office shall be authorized to order the deposit or withdrawal of
' monies in the Local Agency Investment Fund:
Pau1 E. B ers
Name�-
Diane L. Thornbur
Hame
Cit Treasurer
Title
De ut Cit Treasurer
• Title
PASSED� APPROVED and ADOPTED this 17„ �� day of December �
1981� by the following vote� to wit:
AYES: ticPhersen, Newbrander� Puluqi� Snyder 6 Wilson
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CITY OF PALM DESERT, CALII
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S.'g WILSON� MAYOR
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To: Honorable Mayor � �, �
City Council Members � o �
From: Paul S. Gibson, Director of Finance
Subject: dt�tPndmeret to Investment Policv
Date: Augvst 22, 1996
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I3ECOMMENDATION;
Staff/Investment Committee recommend approval of an amendment to the current City of Palm
Desert/Palm Desert Redevelopment Agency Investment Policy allowing the limit of the current
normal operating porlfolio percentage investment in mutual funds be increased from the present
Fifteen Percent (15%) to Twenty Percent (20%); and remove the limit on bond proceeds
invesunent in mutual funds effective immediately per Califomia Government Code Sections
53601 and 53605. This amendment would remain in effect until annual investrnent policy
review in January 1997, then subject to the recommendations of the review.
BACKGROLTND:
At its monthly meeting on August 14, 1996, the City of Palm Desert Investrnent Committee
discussed the recent announcement of the California Government Code changes to Sections
53601 and 53605 which state that there is a 20% limit of normal portfolio operating capital
available to investment in mutual funds and no arbitrary limit mandated for bond proceeds
investment in mutual funds.
As the City/RDA wishes their policy to comply with the California Government Code, and since
the City/R.DA issues new bonds frequendy, it would be very beneficial to our entities to have this
availability of all bond proceeds for investment in mutual funds allowing us maximum return.
Respectfully submitted,
Reviewed and concur,
��G�� �
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Paul S. Gibson �ITY COUNCIL ACTIOIP:"0n A. iaz
Director of Finance/City Treasuref�°�R�VE� v Ciy�,��, r
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US&C
Municipei Treasurcrs' Association
of the United States and Canada
June 6, 1996
Paul S. Gibson
Director of Finance/City Treasurer
City of Palm Desert
73-510 Fred Wartng Drive
Palm Desert, CA 92260
Dear Mr. Gibson:
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�;,,r�CE DE.�aRr�����T
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The Municipal Treasurers' Association is pleased to present the City of Palm
Desert with the Association's Certificat�on of Excellence Award.
Members of the Association's Investrnent Policy Certiflcation Committee
congratulate the City of Palm Desert for its success in developing an outstanding
written investment policy which meets the criteria set forth by the Associatlon's
Investment Policy Certificatton Program.
Our review of your investment pollcy is limited to the documentation submitted.
The Certilication of Excellence is not a guarantee against loss due to economic
and market conditions or human behavior.
The Association's Investment Policy Certification Committee Chairman. Rod Rich.
will be presenting all recipients with the Certiflcation of E�ccellence Award at the
Associatiori s 1996 Annual Conference in Mobile, Alabama. The awards will be
presented during the Awards Luncheon on Wednesday, August 7. We hope that
you will be able to attend this luncheon, however, if your schedule does not
permit you to attend, please call me at (202) 833-1017.
The City of Palm Desert is to be commended for enhancing its fiscal responsibility
in the management of fiscal funds.
Since ely, ,
St cey L. rane
Executive Director
1229 Nineteenth Street, N.W.
Washington, D.C. 20036
�202� 833• 1017
Fax (202� 833-0375
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Press Release
September, 1996
MLIMCIPIAI. T�F.4SUKEKS' AS.�CIATION
U N 1 T E D 5 T A T E S & C A N A D A
c;iTY cF r;.i_�� ��:;� ;,.
F'i��:,�JCE DEPARTI.IE �;-::
'96 SEP 30 Pf� 2 `�
MTA US&C Certifles the Written Investment Policy of
Paim Desert, Cal�f'ornia
�n Junc 4, the written investment poltcy of Palm Desert, California was certiRed by the
Municipal Treasurers' Association of the United Staies and Canada (MTA US&C). The
City was formally recognized for this achievement on August 7 during the Associallon's
31st Annual Cor�'erence in r.4oblle. Alar�*na.
Approximately 150 entitles have had their pollcies certlIIed by the Assoctation since the
Program was developed in the spring of 1990. Palm Desert is one of 38 jurisdictions in
the State of Callfomta to be awarded MTA US&C's certification for wrltten investment
policies.
The Association's Investment Policy Certiflcation Program was instituted in an ef%rt to
assist state and local governments interested in draf�ing or improving upon an existing
investment policy. As part of the Program, the Association k�as created a"Model"
investment policy. The Model includes sample language and rationale for those 1G
secttons the Association deems as critical elements to be addressed in a written policy.
The following are some of the elements included in the Model: llquidlty: selection and
review of suitable investment instruments; internal controls; reporting; portfolio
diversification; custody and safekeeping; selection of investrnent institution criteria;
ethics; and conflicts of interest.
Those entities who have had their written lnvestment pollcies cert!lied in 1995-96
include: Cottonwood. Arizona; Peoria. Artzona; Yutrui. Arizona; Anaheim. Cal�fomia;
Barstow, Californfa: Chino. Califomia; EL Dorado Irrigativn District, Caitjornia; Healdsburg,
Cnl�fornia; Inglewood, Calijomia: Lodi. Cali;/ornia: Los Angeles County MetropoUtan
TYansportation Authortty. Cal�/'ornia: Misston Viejo, Californta; Orange County. Calijornia;
Na1m Desert, C;a! jomta; Paios Verdes Estates, Calt�omta; Redondo Beach. Cai�;/'ornta:
Riuerside, Cak:/'omia: Vista. Calijwnta; Douer, De[aware; OrLartclo, FTorida; St Petersburg,
F[orida; Boise, IdahA; Caroi Stream, liiinois; Peoria, Illinois; Mount Vernore, lowa; Orteans
Parish School Boarc� Louisinna; Brandon Townshtp, Michigan; Otsego, Mtchtgan; Salem
Township, Michigan; Minneapolis-SairctPaulMetropolitanAirports CorruNssion. Mirirtesota:
Van Wert, Ohio; lYorman. Ok6atwma; Philade[phia, Pennsy[uania; Greer, South Caroiina.;
Chattan�a. Te►viessee; Beaurrwr�t. Texas; Denton. Texas: �Euless, Texas; Houstori. TPxos;
Huntsvi(le, Texas; La Marque, Texas; Tarrant County, Texas; Texas Wpter Development
Board; Clark County, Washington; Kent, Washington; and Tacom0. Washington
For information on the Investment Pollcy Certification Program, or to obtain a copy of the
applicatlon and Model Investment Policy, call or write Deborah Reuter at the Municipal
'IYeasurers' Association of the United States and Canada.
1229 Nineteenth Street, N. W. Washington, DC 20036
PHONE 202-833-1017 FAX 202-833-0375
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�� cc: Jean Ruth