Reso 1996-026 to 030 - Laserfiche WebLink

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March 4, 1996 Page 2 of 4 III. Objectives The basic premise underlying the City's investment policy is to insure that money is always available when needed. It shall also be the policy of the City to diversify its investment portfolio to ensure the maximum safety of City assets. The City's portfolio shall be actively managed in order to gain the advantage of changing economic conditions. Through daily projected cash flow analysis, the City will attempt to fully invest all idle cash. IV. Acceptable Investment Instruments The City's investment portfolio may include the following instruments. Whenever this section does not specify a limitation on the term or the remaining maturity at the time of the investment, no investment shall be made in any security that at the time of the investment has a term remaining to maturity in excess of five years, unless the City Council has granted express authority to make the investment either specifically or as part of an investment program approved by the City Council, no less than three months prior to the investment. 1. Certificate of Deposits purchased from local banks or savings and loan institution. Certificates of Deposit shall be either insured by the Federal Deposit Insurance Corporation (FDIC) or fully collateralized. Securities pledged as collateral for deposits shall have a market value of at least 110% of the total amount of all deposits. 2. Securities of Federal Agencies (e.g., Federal National Mortgage Association, Government National Mortgage Association, Federal Farm Credits, Student Loan Marketing Association). 3. United States Treasury bills and notes, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. 4. The State of California Local Agency Investment Fund (LAIF). The City may deposit up to a maximum of $20 million in each City/Agency account. 5. Bankers's Acceptances with maturities no longer than 270 days. No more than 30% of surplus funds may be invested in the banker's acceptances of a single bank. The financial institution must have an A or prime rating from Moody's Investors's Services or Standard and Poor's Corporation. Total portfolio investment in these securities shall not exceed 40% of City/Agency surplus funds.