2004/05/11 City Council Resolution (4)RESOLUTION NO. 2004 -14
RESOLUTION OF THE COUNCIL OF THE CITY OF ROHNERT PARK
.ADOPTING INVESTMENT POLICY FOR IDLE FUNDS
BE IT RESOLVED, by the Council of the City of Rohnert Park
that the Investment Policy for Idle Funds as presented by the
City Treasurer to conform with State law as described in exhibit
"A" attached hereto is hereby approved and adopted.
DULY AND REGULARLY ADOPTED this 11th day of May 2004.
CITY OF OHNERT PARK
ay Gre ory A. Nordin.
ATTEST
FLORES: AYE MACKENZIE: AYE SPRADLIN: AYE VIDAK MARTINEZ: AYE NORDIN- AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
Reso. No. 2004 -114
EXHIBIT "A"
CITY OF ROHNERT PARK
INVESTMENT POLICY FOR IDLE FUNDS
The City has a fiduciary responsibility to maximize the
productive use of assets entrusted to its care and to invest and
manage those public funds wisely and prudently, therefore, as a
general law city, the City of Rohnert Park operates its pooled
idle cash position under a prudent man's rule. 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 local ordinances
of the City of Rohnert Park.
In addition, the City recognizes that it has an equal obligation
to be aware of the social and political impacts of its
investments, and subsequently to act responsibly in making its
financial decisions.
The City shall not knowingly make any investments in any
institution, company, corporation, subsidiary or affiliate that
practices or supports directly or indirectly through its actions
discrimination on the basis of race, religion, color, creed,
national or ethnic origin, age, sex, sexual preference, or
physical disability.
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The City shall strive to make investments that benefit the local
area and are consistent with municipal plans and policies.
Priority should be given to investments that promote community
economic development, i.e. doing business with local banks provided
that the criteria for safety, liquidity and yield are met.
The City of Rohnert Park shall strive to maintain the level of
investment of all idle funds as near 100% as possible, through
daily and projected cash flow determinations. Idle cash management
and investment transactions are the responsibility of the Finance
Department and investments are made in the following media:
• Local Agency Investment Fund (L.A.I.F.) demand deposits
• Sonoma County Investment Pool
• Securities of the U.S. Government or its agencies
• Certificates of Deposits (or Time Deposits), placed with
commercial banks, savings and loan companies, thrift and
loan companies and credit unions.
• Negotiable Certificates of Deposit
• Bankers Acceptances
• Commercial Paper
• Passbook Savings Account demand deposits
• Mutual Funds (dollar for dollar only, no principal
fluctuation); funds invested in U.S. Government
securities only.
Criteria for selecting investments, and the order of priority, are:
1. Safety
2. Liquidity
3. Yield
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Reso. No. 2004 -114
Government and agency paper, and repurchase agreements, are the
highest quality investments available in terms of safety and
liquidity. Certificates of deposits, savings accounts and
bankers acceptances are insured or collateralized.
Most investments are highly liquid, with the exception of
collateralized certificates of deposits held by banks, savings
and loans, thrift and loans, and credit unions. Maturities
shall be selected to anticipate cash needs, thereby avoiding the
need for forced liquidation.
The City shall attempt to obtain the highest yield obtainable
when selecting investments, provided that criteria for safety
and liquidity are met.
The City shall attempt to ladder its maturities to meet
anticipated cash needs in such a way that new investment money
can be placed in maturities that carry a higher rate than is
available in the extremely short market of thirty days or under.
The City shall lengthen its maturities when rates are falling
and shorten maturities when rates are rising. The City shall
attempt to take advantage of imperfections in the market where a
security's price is out of line with other investments, and
tries to improve yields during contracyclical changes in
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Reso. No. 2004 -114
interest rates through the purchase of occasional odd lots which
are offered at bargain prices.
The basic premise underlying the City's investment philosophy is
to ensure that money is always safe and available when needed
and at the same time reaping the highest and best return.
The City Treasurer shall issue monthly Treasurer Reports will
shall contain the following information:
1. Par and market value of investments
2. Disclosure of source of market valuation
3. Disclosure stating compliance with investment policy
4. Disclosure stating ability to meet expenditure
requirements for the following six months.
CITY OF ROHNERT PARK
SAndra M. Lipitz
City Treasurer
May 2004
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