1992/01/14 City Council Resolution (5)RESOLUTION NO. 92- 07
RESOLUTION OF THE COUNCIL OF THE CITY OF ROHNERT PARR
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.
ATT;
DULY AND REGULARLY ADOPTED this 14th day of January, 1992.
CITY OF ROHNERT PARR
Mayor
EO AYE OLLINGSWORTH AYE HOPKit4s AYE REi`LY AYESPIRO AYE
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AYES 5 NOES —L AOSEN I EJ �
EXHIBIT "A"
CITY OF ROHNERT PARR
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
• 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
Investment Policy - Page 2
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 interest rates through the
Investment Policy - Page 3
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 PARR
,A��y
Z.
Michael L. Harrow
City Treasurer
January 1992
Investment Policy - Page 4