1990/06/26 City Council Resolution (12)RESOLUTION NO. 90 -138
RESOLUTION OF THE CITY 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 and as described in Exhibit gAEattached hereto is hereby approved
and adopted.
DULY AND REGULARLY ADOPTED this 26th day of June, 1990.
CITY OF ROHNERT PARK
TCD:90 -138
;Mayor
GiOGIRAN.AYE EGK
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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
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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
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
Repurchase Agreements
. Commercial Paper
. Passbook Savings Account demand deposits
Criteria for selecting investments, and the order of priority, are:
1. Safety
2. Liquidity
3. Yield
Governments and agency paper, and repurchase agreements, are the highest quality
investment 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
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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 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.
CITY OF ROHNERT PARK
Michael L. Harrow
City Treasurer
June 1990