HomeMy WebLinkAboutRES 92-28RESOLUTION NO. 92-28
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF DIAMOND BAR, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA,
ADOPTING THE STATEMENT OF INVESTMENT POLICY
WHEREAS, it is necessary to annually adopt the City
investment policy as provided for in Government Code Section 53646,
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Diamond Bar that the attached Statement of Investment
Policy (Exhibit A) be adopted as presented herein.
PASSED, ADOPTED and APPROVED by the City of Council of
the City of Diamond Bar, California, this 2nd day of June, 1992.
U�ayor
I, LYNDA BURGESS, City Clerk of the City of Diamond Bar,
do hereby certify that the foregoing Resolution was passed, adopted
and approved at a regular meeting of the City Council of the City
Council of Diamond Bar held on the 2nd day of June , 1992,
by the following vote:
AYES: COUNCIL MEMBERS: Forbing, Miller, Werner,
MPT/Papen, M/Rim
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS:
None
y Clt�
CITY OF DIAMOND BAR
Investment Policy
Page 2
Government and agency paper are the highest quality investments
available in terms of safety and liquidity. Certificates of
deposit, savings accounts, repurchase agreements, and bankers
acceptances are insured or collateralized. Only commercial paper,
with A-1 Moody's and P-1 Standard & Poor's ratings, is purchased.
Most investments are highly liquid, with the exception of
collateralized and insured certificates of deposit held by banks
and savings and loans. Maturities are selected to anticipate cash
needs, thereby obliterating the need for forced liquidation.
Longer-term investments (over one year) are generally limited to
maturities of five years or less.
Diamond Bar attempts to obtain the highest yield obtainable when
selecting investments, provided that the criteria for safety and
liquidity are met. ordinarily, through a positive yield curve,
(i.e., longer term investment rates are higher than those of
shorter maturities), the City attempts to ladder its maturities to
meet anticipated cash needs in such a way that carry a higher rate
than is available in the extremely short market of 30 days or less.
The City operates its investment pool with many State and self-
imposed constraints. It does not buy stocks or deal in futures or
options.
A monthly report of investments will be provided to the City
Manager. The required elements of this report are as follows:
a) Type of investment
b) Institution
c) Date of Maturity
d) Amount of deposit or cost of security
e) Current market value of securities with maturity in excess
of twelve months
f) Statement relating the report to the Statement of
Investment Policy
g) Rate of interest
h) Statement that there are sufficient funds to meet the next
30 days' obligations
The basic premise underlying the City of Diamond Bar's investment
philosophy is to insure that money is always available when needed.
I&V - L4�9L
Terrence L. Belanger
Acting City Manager
EXHIBIT A
CITY OF DIAMOND BAR
INVESTMENT POLICY - FY 1991-92
As a General Law City, Diamond Bar operates its pooled idle cash
investments under the prudent man rule. This insures that
"...investment shall be made with the exercise of that degree of
judgement and care, under circumstances then prevailing, which
persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation but for
investment considering the probable safety of their capital as well
as the probable income to be derived." (CC #2261) This affords the
City a broad spectrum of investment opportunities, so long as the
investment is deemed prudent and is allowable under current
legislation of the State of California and the General Law of the
City of Diamond Bar.
The City of Diamond Bar strives to maintain the level of investment
of all idle funds as near loot as possible, through daily and
projected cash flow determinations. Idle cash management and
investment transactions are the responsibility of the Treasurer and
investments are allowed in the following media:
Securities of the U.S. Government, or its agencies (and the
'when issued' market)
Certificates of Deposit (or Time Deposits), placed with
commercial banks and savings and loan companies
Bankers Acceptances
Negotiable Certificates of Deposit
Commercial Paper
Local Agency Investment Fund demand deposits
Repurchase Agreements and Reverse Repurchase Agreements
Passbook Savings Account demand deposits
Money market funds comprised of investments rated in the
highest category by Moody Is Investors Services Inc. or by
Standard & Poor's Corporation.
Investment agreements or contracts representing the
unconditional obligations of entities (1) the secured long-
term debt obligations of which are rated in the top three
categories by Moody's Investors Service, Inc. or by Standard
& Poor's Co-rporation or (2) the short-term debt obligation of
which- -is rated in the highest category by either of such
rating ager�cles.
Tax-exempt; obligations rated in either of the two highest
ratingrategories by Standard & Poor's Corporation or
Moody's"Investor's Service, Inc., including money market
funds comprised solely of such obligations.