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Home My WebLink AboutCC Reso No 1985-30RESOLUTION N0. 85-30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSIPIORE ACKNOWLEDGING THE RECEIPT AND FILING OF THE ANNUAL STATEMENT OF INVESTMENT POLICY FOR THE YEAR 1985. WHEREAS, the California State Legislature passed legislation during the 1984 Session requirin9 the filing of an annual Statement of Investment Policy by local agencies; and WHEREAS, the Governor of the State of California signed such legislation into law effective January 1, 1985 (Chapter 1226); and WHEREAS, the City Rreasurer of the City of Lake Elsinore declares the annual Statement of Investment Policy to be as follows: PURPOSE: Thiss.tatement 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 management system. Ultimate investment goals include the protection of oooled cash investments along with the enhancement 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 9ood cash management, thus insuring the investement of moneys to the fullest extent. Attempts to obtain the highest interest yields possible are a statement of fact as long as investments meet the criteria required for safety and liquidity. 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 judgement and care, under the circumstances then prevailing, which men of prudence, discretion, and intelle9ence exercise in the management of their o~an affairs. .." (copy attached). This affords a broad spectrum of investment opportunities so long as the .. investment is deemed prudent and is permissible under currently effective legislation of the State of California 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 possible. Consistent with this factor, investments are made under the terms and conditions 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 3. Yield Government securities and debt obligations by Governmental agencies whose obligations carry the full faith and credit of the Federal Government, and repurchase agreements of the same stature, are the highest quality investments availabie in terms of safety and liquidity. Certificates of deposit, savings accounts and interest bearing active deposits are insured or collateralized to the degree consistent with or exceeding existing law or regulation. As certificate maturities are selected to anticipate cash needs and cash flow, additional purchases of collateralized or insured term certificates of deposit will be limited, unless negotiable, to those with maturities not exceedin9 two years and for the most part will be kept within one year. All deposits in the State Local Agency Inuestment Fund are in accordance with Section 16429.1 of the Government Code, These investments, highly liquid, will not exceed the insured limit. The City of Lake Elsinore operates its investment program with many Federal, State, and self-~mposed constraints. It does not buy stocks; it does not speculate; it does not deal in financial futures, commodity options, market indices, security loan agree- ments, or reverse repurchase agreements. To maximize investment income, the City of Lake Elsinroe uses available, economically feasible investment aids. Economic conditions and the various money mar~ets are constantly monitored to assess financial trends and the probable course of interest rates. The final basic premise underlying the City of Lake Elsinore investment philosophy is to insure the safety of principal and to provide money when needed. A high dollar yield on investment, though important, ranks third in the priority of investment strategy. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AS FOLLOWS: -2- That an annual Statement of Investment Policy for the City of Lake Elsinore has been filed by the City Treasurer for the calendar year 1985 in compliance with Section 53646 (A) of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED this 1985, by the following vote: day of May , AYES: KNIGHT, MATSON, STRIGOTTE, VERMILLION, ~ALENZUELA NOES: NONE ABSENT: NONE ABSTENTIONS: NONE ~ ~~ ARTA VALENZUELA, M R CITY OF LAKE ELSI E J PIR MONEY, CITY CLERK C Y OF LAKE ELSINORE APPROVED AS TO FORM: I JOHN~~~ ~ , CITY TORNEY CITY OF LAKE ELSINOR 14th By: STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) ' S, Jo Hnn Money City Clerk of t"° City of Lake risinore, 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 14th day of May, 1985 , and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: KNIGHT, MATSON, STRIGOTTE, VERMILLION, ~ALENZUELA - NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ~ ~ J NN MONEY, CITY CLERK C 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. 85-30 , of said Council, and that the same has not been amended or repealed. DATED: May 15, T985 ~ }~t t9^,.~.e~. JO N MONEY, CITY CLERK CI f Of LAKE ELSINORE (SEAL)