CC RESOLUTION 33491'f;20
RESOLUTION NO. 3349
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, APPROVING AND ADOPTING THE
CITY TREASURER'S 1986 STATEMENT OF INVESTMENT
POLICY.
WHEREAS, the Government Code requires that City Treasurers
prudently invest the City's temporary idle cash; and,
WHEREAS, the City Treasurer of the City of E1 Segundo has
presented the 1986 Statement of Investment Policy, a copy of which
is attached hereto as Exhibit "A ", to the City Council for its
approval,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO,
CALIFORNIA, DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves and adopts the
1986 Statement of Investment Policy as submitted by the City
Treasurer.
SECTION 2. The City Clerk shall certify to the passage and
adoption of this resolution; shall enter the same in the book of
original resolutions of said city; and shall make a minute of
the passage and adoption thereof in the record of the proceedings
of the City Council of said city, in the minutes of the meeting
at which the same is passed and adopted.
PASSED, APPROVED and ADOPTED this 7th day of January, 1986.
(SEAL)
J:R- 010785.TRE
/`tV VLA
yor of the City of El egundo,
California
LOUISE ECKERSLEY
CITY TREASURER
PURPOSE
350 Main Street
El Segundo, California 90245
(213) 3224670
CITY OF EL SEGUNDO
STATEMENT OF INVESTMENT POLICY
.14f,?_i.
This Statement is intended to provide guidelines for the prudent
investment of the City's temporary idle cash, and outline the
policies for maximizing the efficiency of the City's cash management
system. The ultimate goal is to enhance the economic status of the
City while protecting its pooled cash. '
OBJECTIVE
The City's cash management system is designed to accurately monitor
and forecast expenditures and revenues, thus enabling the City to
invest funds to the fullest extent possible. The City attempts to
obtain the highest yield obtainable as long as investments meet the
criteria established for safety and liquidity.
POLICY
The City of E1 Segundo operates its temporary pooled idle cash
investments under the prudent man rule (Civil Code Sect. 2261.-et
seq.) *. This affords the City a broard spectrum of investment
opportunities as long as the investment is deemed prudent and is
allowable under current legislation of the State of California
(Government Code Section 53600 et seq.).
Investments may be made in the following media:
- Securities of the U.S. Government, or its agencies
- Small Business Administration Loans
- Certificates of Deposit (or Time Deposits) placed with
commercial banks and /or savings and loan companies
- Negotiable Certificates of Deposit
- Bankers Acceptances
EXHIBIT 'WIL
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City of El Segundo
Statement of Investment Policy (Continued)
POLICY
- Commercial Paper
- Local Agency Investment Fund (State Pool) Demand Deposits
- Repurchase Agreements (Repos)
- Passb000k Savings Account Demand Deposits
• - Reverse Repurchase Agreements
Criteria for selecting investments and the order of priority are:
1. Safety. The safety and risk associated with an investment
refers to the potential loss of principal, interest or a
combination of these amounts. The City only operates in
those investments that are considered very safe.
2. Liquidity. This refers to the ability to "cash in" at any
moment in time with a minimal chance of losing some portion
of principal or interest. Liquidity is an important in-
vestment quality especially when the need for unexpected
funds occurs occasionally.
3. Yield. Yield is the potential dollar earnings an investment
can provide, and sometimes is described as the rate of
return.
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, in local
agency's name and control, whenever possible.
Investment Objective. The cash management system of the City of E1
Segundo is designed to accurately monitor and forecast expenditures
and revenues, thus insuring the investment of monies to the fullest
extent possible. Attempts to obtain highest interest yields possible
as long as investments meet the criteria required for safety and
liquidity.
City Constraints. The City of El Segundo operates its pooled idle
cash investments under the Prudent Man Rule. (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.
IC
14G9
City of E1 Segundo
Statement of Investment Policy (Continued)
City Constraints.
The City strives to maintain the level of investment of all funds as
near 100% as possible, through daily and projected cash flow deter-
minations. Idle cash management and investment transactions are the
responsibility of the City Treasurer.
The basic premise underlying the City's investment philosophy is,
and will continue to be, to insure that money is always safe and
available when needed.
i
City Treasurerr
City of E1 Segundo
Attachment: Prudent Man Rule
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14
*The prudent man rule states, in essence, that "in investing... prop-
erty 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...."
—I
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
\J
I, Ronald L. Hart , City Clerk of the
City of E1 Segundo, California, DO HEREBY CERTIFY that the whole
number of members of the City Council off the said City is five;
that the foregoing resolution, being Resolution No. 3349 was
duly passed and adopted by the said City Council, approved and
signed by the Mayor of said City, and attested by the City Clerk
of said City, all at a regular meeting of the said Council held
on the 7th day of January , 19 86
and that the same was so passed and adopted by the following
vote:
AYES:
NOES:
ABSENT:
Councilmembers Jacobson, Schuldt, Siadek
Synadinos & Mayor Armstro
Councilmembers None
Councilmembers None
WITNESS
MY HAND
AND
THE OFFICIAL SEAL OF SAID CITY
this 3rd
day
of
February , 19 86 .
U
(SEAL)
0
City of E1 Segundo, California