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HomeMy WebLinkAboutTC Res 1997-02-05 (3) .. '. RESOLUTION NO..D[Z ,--. f A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADOPTING A STATEMENT OF INVESTMENT POLICY FOR CALENDAR YEAR 1997 ".j I , 1 . WHEREAS, State of California Assembly Bill 1073, Chapter 1226 amended Government Code Section 53646 (a) to require "The treasurer or chief fiscal officer shall annually render to the legislative body of the local agency a statement of investment policy." WHEREAS, State of California Assembly Bill 1 073 also requires monthly reporting of local agency investments, Government Code Section 53646 (b) provides that "The treasurer or chief fiscal officer shall render a monthly report to the chief executive officer and legislative body of the local agency showing the type of investment, institution, date of maturity, amount of deposit, rate of interest, and such data as may be required by the local agency. " NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Tiburon does hereby adopt a Statement of Investment Policy (attached), and the Finance Director is directed to continue to submit a monthly investment summary statement to the Town Council. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on ,-II. February 5, 1997 by the following vote: , AYES: COUNCILMEMBERS: Hennessy, Ginalski, Thayer, Thompson, Wolf NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: None. None. ~;1Jj ~'''1' THERESE HENNESSY, MAYOR TOWN OF TffiURON ATTEST: ~ DIANE L. CRANE TOWN CLERK - ,L 1 - 2 .. TOWN OF TmURON ,--.. STATEMENT OF INVESTMENT POLICY l The Town ofTiburon is a General Law city and operates its temporary pooled idle cash investments pursuant to the Stale of Califcmia Oovcmmenl Code Sections 53600 el.seq.. and the prudent man role (Civil Code Section 2261.) This affords the Town a broad spectrum of investment opportuDities as long as the investment is deemed prudent and is allowable under current legislation of the Stale of Califcmia. The Town bas a relatively small investment )llX1folio and limited staff time to consider inveslmeol strategies, therefore the Town sballlimit in~t. to the most secure instruments available. Our ultimate goal is to enhance the financia1 slalus of the Town wbile protecting our pooled cash. We strive to accurately monita and forecast revenues and expeodituml thus enabling the Town to invest these funds to the fullest extent possible. as long as the investments meet the criteria n:quin:d foc safety and liquidity. Criteria, for selecting investments and the order of priority are; ~ (I) Safety: The safety and risk associated with an invesbnent refers to the potential loss of principal and interest, or a combination of these elements. There is safety iftbere is llSS\UlIIICe that principal will be preserved. , (2) Liquidity: An investment is liquid if it can be converted to cash with a m;n;mal chance oflosing principal or interest. (3) Yield: Is the potential earnings of an investment, a rate of return. Investment may be made in the following instrwnents: J-- [] State of California Local Agency Investment Fund (LA1F) demand deposits. [] Passbook savings accowrt demand deposits. [] Securities of the Uuited States Government, or its Agencies. [] United States Treaswy notes, bonds, bills, or other instruments on which the full faith and credit of the United States is pledged for the payment of principal and interest. [] Certificates of Deposits (or Time Deposits) placed with commercial banks or savings and loan institutions. [] Negotiable Certificates ofDeposil [] Banker's Acceptances. [] Repw-chase Agreements. 1 - Other Investment instruments authorized by State legislation sbaII not be used unless Town Council approval is obtained. IDveatlag: Whenever possible the Town sbaII use brokers domiciled in California. Certificates of Deposit and passbook savings aooounts may be made in institutions in the Stale of California. Wherever possible interest sbaII be paid on a monthly basis, the regular exception being the quarter1y interest payments on funds placed in the Stale LAIF pool. Financial Institutions sbaII be evaluated by staff prior to an investment offunds. CoDate....Jlnt.....' Certificates of Deposit and savings account balances in excess of the federally insured limit are to be collateralized, and Banker's Acceptances and repw-chase agreements sbaII be insured or coI1ateraIized. Safekeeping' Securities purchased from brokers (dealers) sbaII be held in third party safekeeping by the 1rusl depar1ment of the local agency's bank, or other designated third party 1rusl, and in the Town's name and control whenever possible. FIduciary lleoJlOllllbillty: All participants in the inveslmeol process sbaII act responsibly as cvotnd;.n. of the public trust. Town Officials sbaII avoid any transaction that might impair public confidence in the Town ofTiburon's ability to govern effectively. The basic premise underlying the Towns Investment Policy is to insure our financial integrity. Passed and adopted at a regular meeting of the Tiburon Town Council. February 5,1997.