HomeMy WebLinkAboutCity Council - 5635 RESOLUTION NO. 5635
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH ACKNOWLEDGING THE RECEIPT
AND FILING OF THE ANNUAL STATEMENT OF INVEST-
MENT POLICY FOR THE YEAR 1986
WHEREAS, in 1984 California Government Code section 53646
was amended to require the treasurer or chief fiscal officer of
a local agency to render an annual statement of investment pol-
icy to the legislative body, and a monthly report containing
specified information regarding investments and deposits to the
chief executive officer and legislative body; and
Such amendment is mandatory for all local agencies; and
Pursuant to Title 5, Division 2, Chapter 4, Article 1, com-
mencing with section 53600 of the California Government Code,
the City Treasurer declares the annual statement of investment
policy for the City of Huntington Beach to be as follows:
1. PURPOSE. This statement is intended to provide a guide-
line for the prudent investment of temporary idle cash, trust
funds and restricted monies and to increase the efficiency of
the cash-management system to the utmost. Ultimate investment
goals include improvement of the economic status and the pro-
tection of pooled cash investments.
2. OBJECTIVE. The cash management system of the City of
Huntington Beach is designed to monitor and forecast expendi-
tures and revenues, thus insuring the investment of monies to
the fullest extent possible. Attempts to obtain the highest
interest yields are a statement of fact as long as investments
meet the criteria required for safety and liquidity.
3. POLICY. The City of Huntington Beach operates its
pooled idle cash investments under the Prudent Man Rule
(California Civil Code sections 2261 et seq. ) . This affords a
broad spectrum of investment opportunities as long as the in-
vestment is deemed prudent and is permissible under currently
effective state legislation and other imposed legal restric-
tions . The City Treasurer will strive to maintain the level of
investment of idle funds as close as possible to 100 percent.
Consistent with this aim, investments are made under the terms
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and conditions of California Government Code sections 53600
through 53683. Criteria for selecting investments and the ab-
solute order of priority are:
(a) Safety;
(b) Liquidity; and
(c) 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 a de-
gree consistent with or exceeding laws or regulations.
Most investments are highly liquid, with the exception of
collateralized or insured term certificates of deposit issued
by banks and savings and loan organizations. Certificate ma-
turities are selected to anticipate cash needs, thus fore-
stalling the need for forced liquidation and accompanying loss
of interest payment.
The City of Huntington Beach operates its investment pro-
gram 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 . Long term in-
vestments (over one year) are generally limited to maturities
of ten years or less and limited in total to 15 percent of the
moving five-year average fiscal year minimum pooled fund bal-
ance.
To maximize investment income, the City of Huntington
Beach uses all available, economically-feasible investment
aids. Economic conditions and various money markets are moni-
tored in order to assess the probable course of the interest
rates.
The final basic premise underlying the city' s investment
philosophy is to insure the safety of principal and to pro-
vide money when needed. A high dollar yield on investments,
although important, ranks third in the priority of investment
strategy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Huntington Beach that the foregoing annual statement of
investment policy, as required by California Government Code
section 53646(a) , and submitted by the Huntington Beach City
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Treasurer, is accepted and approved.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held on the 3rd
day of February 1986.
IV�t
Mayor
ATTEST: APPROVED AS TO FORM:
ALICIA M. WENTWORTH, CITY CLERK
epu y City Clerk �'_ City Attorney
REVIEWED AND APPROVED: INITIATED ALNDn A D:
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City Administrator a r
ahb; 1/28/86
0463L/86-118
3.
Res. No. 5635
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of more than a majority of all the members of said City Council
at a regular meeting thereof held on the 3rd day
of February 19 86 by the following vote:
AYES: Councilmen:
Kelly, MacAllister, Finley, Mandic, Bailey, Green
NOES: Councilmen:
None
ABSENT: Councilmen:
Thomas
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California