2002/04/23 City Council Resolution (4)RESOLUTION NO. 2002 68
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 23rd day of April 2002.
ATTEST
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CITY OF ROHNERT PARK
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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.
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.
Investment Policy - Page 2
Criteria for selecting investments, and the order of
priority, are:
1. Safety
2. Liquidity
3. Yield
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.
Investment Policy - Page 3
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 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.
May 2002
Investment Policy - Page 4