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Home My WebLink AboutCC Reso No 1986-07_ _ _ _ ~ RESOLUTION N0. 86-7 A RESOLUTION QF THE CITY COUNCIL OF THE CITY OF LAKE ELSINQRE ACKNOWLEDGING THE RECEIPT AND FI:LING OF TNE ANNUAL $TATEMENT OF INVESTMENT POLICY FOR THE YEAR 1986. WHEREAS, the California State Legislature passed legislatipn during the 1984 Session requiring the filing of an annual Statement of Investment Policy by locai agencies; and WHEREAS, the Governor of the State of Cali.fprni:a signed such legislation into law effective January 1, 1985 (Chapter 1226}; and I WHEREAS, the City Treasurer of the City of Lake Elsinore declares the annual Statement of Investment Policy to 6e as follows: PURPOSE: This statement is intended to provide guidelines for the prudent investment of temporary idle cash and trust funds and to outline a policy for effecting efficiency in the cash managem~nt system. Ultimate investment goals include the protection of pooled cash investments along with the enhance- ment of economic status. OBJECTIVE: Investment decisions should be made with the knowledge of the day-to-day and month-to-month cash flow. To monitor and forecast expenditures and revenues is a necessary objective for good cash management, thus insuring I the investment of moneys to the fullest extent. Attempts to obtain the high- i est interest yields possible are a statement of fact as long as investments meet the criteria required for safety and liquidity. ~ I~ POLICY: The City of Lake Elsinore operates its pooled idle cash investments under the Prudent Man Rule (Civil Code Section 2261, et seq.), which states, '~ in essence, that "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...° (copy attached). This affords a broad II spectrum of investment opportunities so long as investment is deemed prudent and is permissible under currently effective legislation of the State of Cali- ', fornia and other imposed legal restrictions. The City of Lake Elsinore strives ~ ~ ~! to maintain the level of investment of idle funds as near to 100% as possi6le. ' Consistent with this factor, investments are made under the terms and condi- , tions of Sections 53600 - 53683 of the Government Code of California. Criteria ' for selecting investments and the absolute order of priority are: _- 1. SAFETY ~, 2. LIQUIDITY i 3. YIELD. ~ __ ~- ---- . _ ' MOST INVESTMENTS WILL BE MADE IN THE FOLLOWING MEDIA: ~. Government securities and debt o6ligdtipn~ Gy Governmental agenc~es whose obligations carry the full faith and credit of the Federal Government and repurchase aqreements of the same stature are the highest quality invest- ments available in terms of safety dnd li.qui.dity. ' p. Certificates of deposit, savings accounts and interest bearing active deposits are insured or collateralized to the degree consistent with or ex- , ceeding existing law or regulation. As certificate maturities are selected ' to anticipate cash needs and cash flow, addi.tional purcliases of collateral- ized or insured term certificates of deposit ~ill 6e limited, unless nego~ - tiable, to those with maturities not exceeding two years and for the most part will be kept within one year. , 3, All deposits in the State Local Agency Tnvestment Fund are in accordance I with Section 16429.1 of the Government Code. These inve5tments, highly liquid, ' will not exceed the insured or collateralized li:mit. The City of Lake Elsinore , operates its investment program with many Federal, State, and self-imposed , constraints. It does not buy stocks; it does not speculate; it does not deal I in financial futures, commodity opti.on~, market indicies, security lpan agree- ments, or reverse repurchase agreements. ' To maximi:ze investment income, the Ci_ty OP Lake Elsinore uses availdble, economically feasible investment aids. Economic conditions and the various money markets are constantly monitored tp assess financial trends and the probable course of interest rates. ', The final basic premise underlying the Ci:ty of Lake Elsinore investment ' , nhilosophy is to insure the safety of principal and to provide money when ' needed. A high dollar yield on investment, thoug6 important, ranks third i:~ the priority of investment strategy. I NOW, THEREFORE, BE IT RESOLVED BY THE C~TY COUNCIL OF THE ' CITY OF LAKE ELSINORE A~ FOLLOFIS: I That an a~anual Statement of Tnve~tment Pplicy for the City of Lake Elsinore has been filed 6y the City Treasurer for the ~ calendar year 1486 ~n compliance with Sectipn 53646 (A) of the ; I Government Code of the State of Californi.a. , ~ , - I , ~ PASSED, APPROVED AND ADOPTED this llth day of februarv ~ 1986 by the following vote: AYES: COUNCILMEMBERS: KNIGHT, MATSON, STRIGOTTE, VERMILLION, VALENZUELA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTENTIONS: COUNCILMEMBERS: NONE ~G~ ARTA VALENZUELA, OR CITY OF LAKE EL ORE v ~%~. ANN MONEY, CITY CLER TY OF LAKE ELSINORE APPROVED AS TO FO M: ~~~ ~ JOHN R. HARPER, CITY A CITY OF LAKE ELSINORE CIVIL CODE ' § 2261. [Im~estment of funds] ` (1) In investing, rcinvesting, purchasing, acquiring, exchanging, selIing and managing proper[y for the benefit of another, a trustee shall exercise the judgment and care, under thc circumstanca then prevail-, " ing, which men of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to thc pennanent disposition of their funds, considering the probable income, as well as the pzobable safety of their capital. Within the limitations of the~foregomg standard, and subject to any ezpress provisions~ or limitat~ons contained in any particular trust instrument, a trustee is authorized to acquire every kind of property, real, personal or mixed, and evcry kind of iavestmrnt, specifically including, bu2 not by way of limitation, corporate obligations of every kind, and stocks, preferred or common, which men of prudence, discretion and inteiligence acquire for their own accounL (2) In the absence of express provisions to the contrary in the trust instrument, a trustee may continue to hold property received into a - trust at iu inception or subscquently added to it or acquired pursuant to proper suthority if and as long as ihe trustee, in the ezercisc of good faith and of reasonable prudence, discretion and intelligence, may ~onsider that retention is in the best interests of the trust. Such property may includc stock in the trustee, if a corporation, and stock ~ in any corporation controlling, controlled by, or. under common _ control with such trustet (3) In the absence of ezpress provisions to the contrary in the trust . instrument, a deposit of trust funds at interat in any bank (including • the irusteo, if a bank) shall be a qualified investment to the eztrnt that such deposit is insured nnder any prescnt or futurc law of the United Stata, or xo such greater extent as ~ couri of competent jurisdiction may authorize. Nothing in this sect~on shall be construed as limiting the right of trustea in proper cases to make deposiu of ~ tnut moneys in banks, subject, in thc case of interat-bearing deposiu, ~ to such notice or other conditions rapecting withdrawal as may lie prescribed by law or governmental regulation affccting sueh deposiu. (4) Nothing in this section shall abrogate or restrict the power of the appropriate court in proper easa to direct or permit the trustee to 1 -9- ____ _ _ ', - - ^ . CIVIL CODE BEI:EFIT OF THIRD PERSOASS 4 2~1 de»ate from thc terms of thc trust regarding tl,c making or rctcntioa of invcstmcntt .• (S) Thc provisions of this section shall npply to all trusts noa~ czisting - .. or hercafter created. K'bcre, in trusu aoa• cxisting on c~rcaftcr ' ucated, the term "investmcnts permissib]e by law• for investmrnt of ' trust funds;' or "authorized b~• 2aa• for invcstmrnt of trust funds,^ •7cga] invcstmcnu;' or "authorized investments;' or othcr words of • similar impori are uscd in defining the poa•ers of thc trustce rclativc to investmrnu, such Ianguagc, in thc abscncc of othu controIling or modif~~ng pro.-isions of the truzt instrument, shall be conslrued as sutborizing any invcstmcnt pcrmitted by thc tcrms oi subdivision (i) ot this scctioa. (6) T'2~c tcrm "propcrty" as used in this section includcs life insur- ance, endow•mcnt, and annuity contracts issued by ]egal rescrve ~ companies authorizcd to do business in this statt ' En~seA 1872; Amrnded Suu 1943 cb 81 f§] ~ 2602; Suu ]967 ch 686 ¢ 1 p 2054, cL 1706 f 1 p ~265, Suts 196b cL 161 ¢ I y 3B5; Suu 1969 cb 259 ¢ 1 p 611. Prior Is^: Field's Drdt NY CC g 1199. • ~ ~ ~ Amendmentc ~ ~ ~ . 2923 Amendmmt• Prior to ]943 the sectioa rud: 'A trvna murt invest moncy ~ ~ reui.ed b~ him undrr the wst, u fas: as he collctu ~~~ul5cicnt amounl, in sucL ~ ~~ ~~ ~ manntr as to a5ord rucon~Dle ~cecuriq~ ind in~crest for tTc samc" ' ~ ~. ~ 19<3 Amrndment ~mrnded tkm cettion to rriC as n praent ezcept for the follow~inj ~ ~ '. Amendmrnu ~ 1967 Amrndment: (I} Addcd ibe ucoad .semenu of subd (2); Q) ddned "c+vin¢ . ~ , ~ Dan1 or the t~vin@s depanmrnt of anp' afta "intcrest in any' in subd (3); and ~ -(3) ddcted "thc favings dcpanmcnt of' dtcr "(incluBinF" in subd (Sj ~ . 1965 Amendmrnt Added wbd (6). - ~ ~ 1969 Amendment: Added ", md stxk in any torporation eonirolling, controlleL by, . . ~ or undcr common control aith cuch lructec' at ihc cnC a~ mbd (2} . . ~. ~ . ' ~ Gosc Referenet~ ~ ~ . Li:biii~~~ ot trusia in conncction ~ith issue of shires~ Corp C§~Il. . .~ . .. ~. ~ ~ . In~cstment of irust funds recdvra ~y vust eompaay: Fm C f 1561. ~ ~~~ ~~ Dcposit ot trust eompany funds twaiting investment or d~stribution: Fin. C§ 1562. . - .~ ~~ ~ ~ .Registration of ttock Leld in uust in nimc of uominee of wst compury•: Fm C ~ @ I563. Common trust funds: Fin C 4 1561• - . ~ ' - Sbara of cavings and loan associnions u kFai investmrnu: Fm C§ 6407. ~ ~ In~estmem cenifiuta issued b~• csvinFs anC ban assxiations as le~zt invatmeas: Fm C § 6a08. • FeLerit cavings and foae associations: Fin C{]1207. .. - . . Nstionzl monFage usocia~ion obliFationc: Fw C~f 27000 a teq. .. Farm lwn bonds• Gov C§ 6660. Prnsion trust fundt~ Go~ C{ 53216.5. - 1n~estment o! unnmeE premium reserve of titlr insura: Ins C§ 123ED. McnF~ge piniciyation cenificnn and seturi~ies ~uaruttxd by monFaFe policia K ~~~ ~ . ~ kFal mvestmenu for w:t funds: ins C.~ 32526. ~. Cenifiuta ~nd tranc(ers of sharn ot other teeurities beld bc 66uriaria: UCC 4 esot. EsuDlishmrnt of common trusts bp Depanmrnt of Mrnul Hnlih. Q' l~ 3 C~ 72i6. ~. ~ ~ Municiyal viier d~ctritt Dondi: X'at Uneod Act f~7. ' STATE OF CALIFORNIA ) ' ) ss. ~ COUNTY OF RIVERSIDE ) I, Jo Ann Money City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Lake Elsinore at a regular meeting of said Council on the llth day of February, 1986 , and that it was so adopted by the fol owing vote: AYES: COUNCILMEMBERS: KNIGHT, MATSON, STRIGOTTE, VERMILLION, VALENZUELA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE J NN MONEY, CI Y CLERK I Y Of LAKE ELSINORE (SEAL) STATE OF CALIfORNIA ) . ~ ss. ~ COUNTY OF RIVERSIDE ) . I Jo Ann Money, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 86-7 , of said Council, and that the same has not been amended or rep~ed. DATED: February 18, 1986 (SEAL)