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Home My WebLink AboutItem 4.04 Investment Policy CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 14, 1985 SUBJECT Statement of Investment Policy EXHIBITS ATTACHED Policy; Investment Report for Period Ending December 31 , 1984 RECOMMENDATIO Ct ' 1 ) Adopt Statement of Investment Policy for 1985 2 ) Approve Investment Report for Period Ending December 31 , 1984 FINANCIAL STATEMENT: See Attached DESCRIPTION On September 17, 1984, the Governor signed Assembly Bill No . 1073 , which requires the City Treasurer or Chief Fiscal Officer to render to the City Council the following : 1 . An annual statement of investment policy 2 . A monthly report showing the type of investment institution, date of maturity, amount of deposit , current market value for all securities with a maturity of more than 12 months , rate of interest and any other information required by the City Council . This monthly report shall state its relationship to the statement of investment policy. This law became effective on January 1 , 1985 • In accordance with this new state law, Staff has prepared the attached Investment Policy and Investment Report for the period ending December 31 , 1984 . ---------------------------------------------------------------------------- ' / COPIES TO : ITEM N0. �`"• CITY OF DUBLIN STATEMENT OF INVESTMENT POLICY AND STRATEGY CITY OF DUBLIN STATEMENT OF INVESTMENT POLICY Introduction The availability of cash on a short term basis in the City of Dublin treasury offers an opportunity for a substantial amount of revenue to be generated by a prudent investment program. A growing number of investmen; ;..L.struments and an ever fluctuating money market makes it imperative triat the City establish a policy for managing its investment portfolio. To maximize earnings and at the same time provide reasonable safety to the City's money, the following investment policy is hereby authorized: Policy It is the policy of the City of Dublin to invest the maximum amount of cash available to the City in order to generate interest earnings to supplement other City revenue sources. The investment program will be subject to the following principles presented in the order of importance. 1. Safety. The first priority for the investment program shall be the safety of principal investment. Specualation or risky investment media will be avoided even though high interest rates might be offered. Basic consideration for safety shall include: A. Review and comply with the legal requirements set forth under sections of the Government Code of the State, as well as local laws or policies. B. Understand the types of investment instruments which are available and use those instruments which best meet the City's needs. C. Match the complexity of the investment program to the availability of staff time and resources. D. Maintain adequate records and controls. E. When appropriate, obtain the assistance of a reputable financial advisor who is familiar with investment procedures and municipal requirements. 2. Liquidity - Spacing Maturity. Investments must be carefully coordinated with the City's periodic cash needs. It is urgent that current available cash not be assigned to an investment with a time commitment which will result in the shortage of cash for either operations or capital purposes at some future time. The need for liquidity will take precedence over the higher rates of interest often offered with longer term investments. Basic considerations for liquidity shall include: A. Maintain an analysis of City cash flow reflecting historical experience of receipts, disbursements and interfund transfers. B. Maintain an estimate of future cash flow needs. C. Schedule maturity for investments so that cash will be returned to the treasury when required and on regular intervals when possible. 3. Maximum Earnings. After exercising maximum safety in investment instru- ments and responsible spacing of maturity, every effort shall then be made to obtain the highest earnings from investments of City money within the limits prescribed by State law for local government investments. Basic considerations for maximum earnings shall include: A. Establishing a regular schedule for verifying current interest rates and projected trends for the future. B. Arrange for periodic quotations from selected banks, savings and loan companies, and investment firms. C. Regularly communicate with city treasurers and other financial and investment advisors and, when practical, obtain information from investment seminars. Various seminars are held in the State sponsored by the League of California Cities, various banks and the California Treasurer's Association. Management of the investment program is the responsibility of the City Treasurer, and investments may be made in the following media: Securities of the U. S. Government, or its agencies Certificates of Deposit (or Time Deposits) placed with commercial banks and savings and loans Bankers Acceptances Negotiable Certificates of Deposit Commercial Paper (minimum rating: NIoody's, A-1, Standard and Poor's, P-1) Repurchase Agreements and Reverse Repurchase Agreements Passbook Savings Account Demand Deposits Other investments that are or may become legal investments through the State of California Government Code The Treasurer shall comply with the reporting procedures and format as provided by Assembly Bill No. 1073 enacted into law September 17, 1981�. As required by this legislation, the City's investment policy shall be reviewed annually by the City Council. CITY OF DUBLIN CITY TREASURER'S INVESTMENT REPORT For Period Ending December 31 , 1984 TYPE OF AMOUNT OF RATE OF DATE OF INSTITUTION INVESTMENT DEPOSIT INTEREST MATURITY (i ) ('72T State of California State Pooled $5 ,000,000 11 .000% N/A Local Agency Investment Fund Money Investment Account Amador Savings & Loan Cert of Dep 100,000 13 .125/ 6/25/85 American Diversified Svgs Bank 100,000 13 . 5001 9/10/85 American Savings & Loan 100,000 10.700% 1/29/85 Bell Savings & Loan if 50,000 11.400/ 11/12/85 Bell Savings & Loan If 50,000 11 .400% 11/12/85 Beverly Hills Savings & Loan 100,000 10.6251 2/14/85 Butterfield Savings & Loan 100,000 13 . 500% 8/1/85 Central Savings & Loan 100,000 13 .250% 9/6/85 City Corp Savings & Loan 100, 000 13 . 500% 7/3/85 Community Federal Savings 100,000 11 . 500% 5/14/85 County Savings Bank 100,000 10.125/ 6/19/85 Eureka Federal Savings & Loan 100,000 12.750/ 8/23/85 Farmer Savings Bank 100,000 13 .750% 9/9/85 Far West Savings & Loan 100,000 10.750/ 3/19/85 Fidelity Federal Savings & Loan 100,000 9. 500% 3/25/85 Gateway Savings & Loan 100,000 10.625/0 2/11/85 Gibraltar Savings & Loan 100,000 11 .250/ 5/1/85 Glendale Federal Savings & Loan 100, 000 12 . 850% 7/3/85 Great Western Savings & Loan 100,000 12 .000% 9/24/85 Long Beach Savings & Loan 100,000 13 . 050% 9/24/85 Marin Savings & Loan 100,000 13 .000`0 9/24/85 itilercury Savings & Loan 100,000 9.750% 6/21/85 Mutual Savings & Loan 100,000 11 . 000% 1/24/86 Pacific Coast Savings & Loan 100 ,000 10.250% 12/19/85 Pacific Federal Savings & Loan 100,000 10.750% 3/20/85 Peninsula Savings & Loan it if 100,000 13 .125% 7/31/85 Santa Barbara Savings & Loan 100,000 13 .000% 8/23/85 Santa Paula Savings & Loan 100,000 10.750% 12/16/85 Southwest Savings & Loan 50,000 11 . 300% 11/15/85 Sun Savings & Loan If it 100,000 13 .000% 9/24/85 Tri Valley National Bank If 100, 000 12 .750/ 7/23/85 Western Financial Savings & Loan 100,000 11 . 550% 4/12/85 Westwood Savings & Loan 100,000 12.250% 5/22/85 Total Funds Invested $8 ,150,000 ( 1 ) The rate of interest on investments is calculated daily. Therefore , the rate identified above was effective on December 21 , 1984. Interest income is paid quarterly and is determined based on the amount deposited and the length of time the deposit remained in the fund within that respective quarter. . ( 2 ) There is no minimum investment period . Monies deposited for investment one day may be withdrawn the next day, with interest earned for one day.