HomeMy WebLinkAboutTC Res 1996-01-17 (4)
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RESOLUTION NO. 3136
A RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF TIBURON ADOPTING A
STATEMENT OF INVESTMENT POLICY
FOR CALENDAR YEAR 1996
WHEREAS, Statcl of California Assembly Bill 1073, Chapter 1226 amended Government Code
Section 53646 (a) to require liThe treasurer or chief fiscal officer shall annually render to the
legislative body of the local agency a statement of investment policy. II
WHEREAS, Statcl of California Assembly Bill 1073 also requires montWy reporting oflocal
agency investmenlts, Government Code Section 53646 (b) provides that liThe 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. II
NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town ofTiburon does
hereby adopt a Statement ofInvestment 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 ofTiburon on
January 17, 1996 by the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
Hennessy, Thayer, Wolf
None.
Ginalski, Thompson
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NICKY WOLF, MAYOR
TOWN OF TIBURON
ATTEST:
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TOWN OF TIBURON
STATEMENT OF INVESTMENT POLICY
The Town of Tibuxon is a General Law city and
operates its temporary pooled idle cash investments
pursuant to the State of California Government
Code Sections 53600 et .seq., and the prudent man
rule (Civil Code Sec1ion 226 I.) This affords the
Town a broad spectrwu of investment opportunities
as long as the investment is deemed prudent and is
allowable under current legislation of the State of
Califomia.
The Town has al relatively small investment
portfolio and limited staff time to consider
investment strategies, therefore the Town shall limit
investments to the most secure instruments
available. Our ultimate goal is to enhance the
financial status of the Town while protecting our
pooled cash. We strive to accurately monitor and
forecast revenues and expenditures thus enabling the
Town to invest th,::se funds to the fullest extent
possible, as long as the investments meet the criteria
required for safety lInd liquidity.
Criteria: for selecting investments and 1he order of
priority are;
I. Safety: The safety and risk
associated with an investment refers to the potential
loss of principal and interest, or a combination of
these elements. There is safety if there is assurance
that principal will be preserved.
2. Liquidity: An investment is liquid if
it can be converted to cash with a minimal chance of
losing principal or interest.
3. Yield: Is the potential earnings of
an investment, a rate of return.
Investment may be made m the following
instruments:
_ State of California Local Agcncy
Investment Fund (LA IF) dcmand dcposits.
_ Passbook sllvings account dcmand deposits.
_ Securities ofthc United States Governmcnt,
or its Agencies.
_ United Statcs Trcasury 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 of Deposit.
_ Banker's Acceptances.
_ Repurchase Agreements.
Other Investment instruments authorized by State
legislation shall not be used unless Town Council
approval is obtained.
Investing: Whenever possible the Town shall use
brokers domiciled in California. Certificates of
Deposit and passbook savings accounts may be
made in institutions in the State of California.
Wherever possible interest shall be paid on a
monthly basis, the regular exception being the
quarterly interest payments on funds placed in the
State LAIF pool. Financial Institutions shall be
evaluated by staff prior to an investment of funds.
Collateralization: Certificates of Deposit and
savings account balances in excess of the federally
insured limit are to be collateralized, and Banker's
Acceptances and repurchase agreements shall be
insured or collateralized.
Safekeeping: Securities purchased from brokers
(dealers) shall be held in third party safekeeping by
the trust department of the local agency's bank, or
other designated third party trust, and in the TO\m's
name and control whenever possible.
Fiduciary Responsibility: All participants in the
investment process shall act responsibly as
custodians of the public trust. Town Officials shall
avoid any transaction that might impair public
confidcncc in the TO\m of Tiburon's ability to
govcm eITcctivcly. The basic premise underlying the
T O\ms Investment Policy is to insure our financial
integrity.
Adopted: at a rcgular meeting of the Town Council
of the Town of Tiburon, January 17, 1996.