HomeMy WebLinkAboutReso 6-1986 RESOLUTION NO. 6-86
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION ADOPTING I~VESTMENT POLICY FOR PUBLIC FJNDS
WHEREAS, California Government Code Section 53646 requires that the City
Council annually adopt a Statement of Investment Policy;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the Investment Policy as described in Exhibit "A" attached hereto
and incorporated herein by reference as though full set forth, is hereby adopted
as the Invest~nent Policy of the City of South San Francisco.
I hereby certify that the foregoing Resolution was regularly introduced and
adopted by the City Council of the City of South San Francisco at a reqular
meeting held on the 8th day of January , 19 86 , by the following
vote:
AYES:
NOES:
ABSENT:
Councilmembers Mark N. Addiego, John "Jack" Drago, Richard A. Haffey,
Gus Nicolopulos; and Roberta Cerri Teglia
None
None
ATTEST: ~Ci~%y~
Clerk
EXHIBIT "A" TO RESOLUTION NO. 6-86
STATEMENT OF INVESTMENT POLICY
CITY OF SOUTH SAN FRANCIsCO
This Statement is intended to provide guidelines for the prudent
investment' of the City's temporary idle cash, and outline the-policies
for an effective cash management system.
The City's cash management system accurately monitors and forecasts
revenues and expenditures, enabling the City to invest funds to the
fullest extent possible. The City attempts to obtain the highest yield
possible, as long as investments meet the criteria established for
safety and liquidity.
The City operates its cash investments under the Prudent Man Rule ("in
investing . . . property for the benefit of another, a trustee shall
exercise the judgment and care, under the circumstances then prevailing,
which men of prudence, discretion and intelligence exercise in the
management of their own affairs . . ."). This affords the City a wide
range of investment opportunities, as lor. g as the investment is deemed
prudent and is allowable under current State legislation.
InVestments maybe made as follows:
Securities of the U. S. Government, or its Agencies.
Certificates of Deposit placed withcc~merical banks or savings
and loan cc~panies.
Bankers Acceptances.
Local Agency Investment Fund.
Repurchase Agreements.
Passbook Savings Account Demand Deposits.
Criteria for selecting investments and the orders of Priority are:
Safety. The safety and risk associated with an investment
refers to thepotential loss of principal, interest or
ccmbination of these amounts. The City only operates in those.
investments that are consideredvery safe.
Liquidity. This refers to the ability to "cash in" at any
amount in time with a minimal chance of losing sc~e portion
of principal or interest. Liquidity is an important invest-
ment quality, especially when the need for unexpected funds
occurs.
3. Yield. Yield is the potential dollar earnings an investment
can provide, sometimes described as the rate of return.
-1-
The City strives to maintain the level, of investment of all funds
as near 100% as possible, through projected cash flow determinations.
The basic premise underlying the City's investment philosophy is,
and will continue to be, to insure ~that money is always safe and
available when needed.
C. Walter Birkelo
Interim City Treasurer
December 20~ 1985
-2-