HomeMy WebLinkAboutCity Council - 5757 RESOLUTION NO. 5757
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ACKNOWLEDGING
THE RECEIPT AND FILING OF THE ANNUAL
STATEMENT OF INVESTMENT POLICY FOR THE
YEAR 1987
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 policy 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,
commencing 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
guideline 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 protection of
pooled cash investments.
2. OBJECTIVE. The cash management system of the City of
Huntington Beach is designed to monitor and forecast expenditures
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.
1 .
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 investment is deemed
prudent and is permissible under currently effective state
legislation and other imposed legal restrictions . 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 and conditions of
California Government Code Sections 53600 through 53683. Criteria
for selecting investments and the absolute 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 degree
consistent with or exceeding laws or regulations.
Investment in commercial paper is limited to that paper which
is of "prime" quality of the highest ranking, or of the highest
letter and numerical rating as provided by Moody' s Investors
Service, Inc. , or Standard and Poor ' s Corporation. Eligible paper
is further limited by the requirements of California Government
Code Section 53601 (g) .
Investment in medium-term corporate notes is limited to those
2.
of a maximum five years maturity, issued by corporations operating
within the United States. Only securities rated in the top three
note rating categories by two of the three largest, nationally
recognized rating services shall be eligible for investment .
Purchase of medium-term corporate notes shall not exceed fifteen
percent of the agency's funds to be invested.
Investment in shares of beneficial interest issued by
diversified management companies (mutual funds) are limited to
those authorized by California Government Code Section 53601 ( 1 ) .
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 maturities
are selected to anticipate cash needs, thus forestalling the need
for forced liquidation and accompanying loss of interest payment .
The City of Huntington Beach 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. Long term investments (over
one year) are generally limited to maturities of ten (10) years or
less and limited in total to 15 percent of the prior fiscal year
minimum pooled fund balance.
To maximize investment income, the City of Huntington Beach
uses all available, economically-feasible investment aids.
Economic conditions and various money markets are monitored 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 provide
money when needed. A high dollar yield on investments, although
3 .
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
S 5364 (a) , and submitted by the Huntington Beach City 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 17th
day of February , 1987.
' or
ATTEST: APPROVED AS TO FORM:
City Clerk AtoVy
REVIE ND APPROVED: INITIATE 0 ED:
City A n stra r y,, urer
f ,
4 .
Res. No. 5757
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 17th day
of February 19 87 by the following vote:
AYES: Councilmen:
Winchell Mays Finley. Kelly. Erskine, GrPPn, Bannister
NOES: Councilmen:
None
ABSENT: Councilmen:
None
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California