HomeMy WebLinkAbout1995-06-27 - AGENDA REPORTS - STATEMENT OF INVESTMENT POLICY (2)AGENDA REPORT
City Manager Approval *1
Item to be presented by:
Steve Stark S S—
CONSENT CALENDAR
DATE:. June 27, 1995
SUBJECT; City of Santa Clarita's Statement of Investment Policy
DEPARTMENT: Finance
BACKGROUND
The City Treasurer is required to annually present the City's Investment Policy to the City Council to reaffirm
or to make any changes to the existing policy.
The Investment Policy provides guidelines for the management of the City's cash and the investment of its idle
funds. The Policy affords the City various investment opportunities as long as the investment is deemed prudent
under the Prudent Man Rule (Civil Code Section 2261, et seq) and is allowable under the current legislation
of the State of California (Government Code Section 53600, et seq.). The Policy's guidelines emphasizes the
importance of safety and liquidity first. The yield on the City's investment portfolio is secondary to these first
two objectives.
Minor revisions to the current Investment Policy have been recommended. These amendments include: 1) the
addition of a current list of primary government dealers in EXHIBIT C; 2) the addition of the City's Investment
Policy Award Notification in EXHIBIT D; 3) minor changes in the Local Agency Investment Fund section; 3)
minor changes in the Los Angeles County Pooled Fund section and 4) minor changes to the Description of
Investments in EXHIBIT A. These revisions are shown shaded in the attached Investment Policy for easy
recognition.
The Investment Policy will again be submitted to the Municipal Treasurer's Association of the United States
and Canada for its Investment Policy Certification of Excellence program, and receipt of the award is
anticipated.
RECOMMENDATION
Staff recommends the City Council affirm the. attached Statement of Investment Policy.
ATTACHMENTS
Statement of Investment Policy
ajs:invest\po1ic}\agrnda96
CITY OF SANTA CLARITA
STATEMENT
OF
INVESTMENT POLICY
Prepared for:
City Council
Via George Caravalho, City Manager
Prepared By:
Steve Stark
Director of Finance/Treasurer
TABLE OF CONTENTS
I. Statement of Objectives ........................:............... 1
II. Investments ..............:....:........................... 3
III. Safekeeping of Securities ..................................... 5
IV. Structure and Responsibility ................................... 5
V. Reporting ................................................ 6
VI. Review of Investment Management 7
VII. Authority ................................................ 8
EXHIBIT A (Description of Investments)
EXHIBIT B (Glossary of Investment Terms)
EXHIBIT C (List of Primary Dealers)
EXHIBIT D (Investment Policy Award Notification)
THE TREASURER OF
CITY OF SANTA CLARITA'S
INVESTMENT POLICY
STATEMENT OF OBJECTIVES
It is the policy of the City of Santa Clarita to invest temporarily idle or surplus funds in
accordance with principles of sound treasury management and in accordance with the
provisions of California Government Code Sections 53600, et seq., the Municipal
Code, guidelines established by the California Municipal Treasurer's Association and
the California Society of Municipal Finance Officers, and this Investment Policy
("Policy").
This investment policy applies to the City's pooled investment fund which
encompasses all moneys under the direct oversight of the Director of
Finance/Treasurer. These include the General Fund, Special Revenue Funds, Capital
Project Funds, Enterprise Funds, and Trust and Agency Funds. This policy also applies
to the idle or surplus fund of other entities for which the City of Santa Clarita personnel
provide financial management services.
A. Overall Risk Profile
The three basic objectives of Santa Clarita's Investment Program are, in order
of priority:
1. Safety of invested funds;
2. Maintenance of sufficient liquidity to meet cash flow needs; and
3. Attainment of the maximum yield possible consistent with the first two
objectives.
The achievement of these objectives shall be accomplished in the manner
described below:
Safetv of Invested Funds
The City shall insure the safety of its invested idle funds by limiting
credit and interest rate risks. Credit risk is the risk of loss due to the
failure of the security issuer or backer.
Interest rate risk is the risk that the market value portfolio securities will
fall due to an increase in general interest rates.
a. Credit risk will be mitigated by:
i) Limiting investments to the safest types of securities;
ii) Prequalifying the financial institutions with which it will do
business; and
iii) Diversifying the investment portfolio so that the failure of
any one issuer or backer will not place an undue financial
burden on the City.
b. Interest rate risk will be mitigated by:
i) Structuring the City's portfolio so that securities mature to
meet the City's cash requirements for ongoing operations,
thereby avoiding the need to sell securities on the open
market prior to their maturation to meet those specific
needs; and
ii) Investing primarily in shorter term securities.
2. Liquidity
The City's investment portfolio shall be structured in a manner which
strives to achieve that securities mature at the same time as cash is
needed to meet anticipated demands (static liquidity). Additionally, since
all possible cash demands cannot be anticipated, the portfolio should
consist largely of securities with active secondary or resale market
(dynamic liquidity). The specific percentage mix of different investment
instruments and maturities is described in Section II of this Policy.
3. Yield
Yield on the City's investment portfolio is of secondary importance
compared to the safety and liquidity objectives described above.
Investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk being assumed. While it may
occasionally be necessary or strategically prudent of the City to sell a
security prior to maturity to either meet unanticipated cash needs or to
restructure the portfolio, this policy specifically prohibits trading securities
for the sole purpose of speculating on the future direction of interest
rates. Specifically, "when, as, and if issued" trading and open-ended
portfolio restructuring transactions are prohibited.
B. Time Frame for Investment Decisions
The City's investment portfolio shall be structured to provide that sufficient
funds from investments are available every month to meet the City's anticipated
cash needs. Subject to the safety provisions outlined above, the choice in
investment instruments and maturities shall be based upon an analysis of
anticipated cash needs, existing and anticipated revenues, interest rate trends,
and specific market opportunities. No investment should have a maturity of
more than five (5) years from its date of purchase without receiving prior City
Council approval.
C. Definition of Idle or Surplus Funds
Idle or surplus funds for the purpose of this policy are all City funds which are
available for investment at any one time, including the estimated checking
account float, excepting those minimum balances required by the City's banks
to compensate them for the cost of banking services. This policy also applies
to the idle or surplus funds of other entities for which the City of Santa Clarita
personnel provide financial management services.
II. INVESTMENTS
This section of the Investment Policy identifies the types of instruments in which the
City will invest its idle funds.
A. Eligible Securities
The City of Santa Clarita operates its temporary pooled idle cash investments
under the Prudent Man Rule (Civil Code Section 2261, et seq.). The Prudent
Man Rule states, in essence, that "in investment... 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
intelligence exercise in the management of their own affairs..." This affords the
City a broad 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.). (See Exhibit A for
definition of investments)
Insured Certificates of Deposit (CDs) of California banks and/or savings
and loan associations, and/or savings banks which mature five (5) years
or less, provide that the City's investments shall not exceed One
Hundred Thousand Dollars ($100,000.00) per institution. If the
investment exceeds the insured $100,000.00, the funds are to be
collateralized at 110% of the deposit in government securities or 150%
in mortgages.
• Local Agency Investment Fund (State Pool) Demand Deposits
• Securities of the U.S. Government, or its agencies
• Negotiable Certificates of Deposit placed with federal and state savings
and loan associations and federal and state chartered banks with an
office in the State of California (limited to 30% of portfolio)
Bankers Acceptances (limited to 40% of portfolio)
• Commercial paper (limited to 30% of portfolio)
• Passbook or Money Market Demand Deposits
Los Angeles County Treasurer's Investment Pool
Money Market Mutual Fund (with $1 net asset value)
B. Qualification of Brokers. Dealers, and Financial Institutions
United States Treasury issue transactions will be conducted only with primary
dealers from the list of Government Security dealers reporting to the Markets
Reports Division of the Federal Reserve Bank of New York. (See Exhibit C for
List of Primary Government Securities Dealers);
C. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be
collateralized in the manner prescribed by law for depositories accepting
municipal investment funds.
D. Preformatted Wire Transfers
Wherever possible, the City will use preformatted wire transfers to restrict the
transfer of funds to preauthorized accounts only. When transferring funds to an
account not previously approved, the bank is required to call back a second
employee for confirmation that the transfer is authorized.
E. Notice of Dealers
The City shall annually send a copy of the current edition of the Policy and its
enabling Resolution to all institutions which are approved to handle City of
Santa Clarita investments. Receipt of the policy and Resolution, including
confirmation that it has been received by persons handling the City's account,
shall be acknowledged in writing within thirty (30) days.
F. Diversification
In an effort to reduce overall portfolio risks, while attaining market average
rates, the portfolio should consist of a mix of various types of securities, issues
and maturities. Investments are limited by specific language relating to each
investment type as stated in Section II.A. of this policy.
G. Confirmation
Receipts for confirmation of purchase of authorized securities should include
the following information: trade date, par value, rate, price, yield, settlement
date, description of securities purchased, agency's name, net amount due, third
party custodial information. These are minimum information requirements.
H. GASB 3
The Governmental Accounting Standards Board issued GASB 3 in April 1986,
and the local entity's investments must be categorized into three levels of credit
risk, as follows:
Securities that are insured or registered, or for which the securities are
held by public units or its agent in the units;
2. Securities that are uninsured and unregistered and are held by the
broker's or dealer's trust department or agent in the unit's name;
3. Securities that are uninsured and unregistered and are held by the
broker or dealer, or by its trust department or agent, but not in the unit's
name.
The carrying amount and market value of all types of investments must be
disclosed in total and for each type of investment.
Governmental Accounting Standards Board 3 exempts mutual funds and LAIF
investments form the mandatory risk categorization.
III. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The City shall contract with a bank or banks for the safekeeping of securities
which are owned by the City as a part of its investment portfolio or transferred
to the City under terms of any repurchase agreements.
B. Handling of City -owned Securities and Time Deposit Collateral
All securities owned by the City shall be held by its safekeeping agent, except
the collateral for time deposits in banks, savings banks, and savings and loans.
The collateral for time deposits in savings and loans is held by the Federal
Home Loan Bank. The collateral for time deposits in banks is held in the City's
name in the bank's trust department, (if a safekeeping agreement has been
executed) or, alternatively, in the San Francisco Federal Reserve Bank.
C. Security Transfers
The authorization to release City's securities will be telephoned to the
appropriate bank by a Finance Department member other than the person who
initiated the transaction. A written confirmation outlining details for the
transaction and confirming the telephone instructions will be sent to the bank
within five (5) working days.
D. Verification of Security
Securities transferred to the City as collateral securing time deposits which are
being held in safekeeping for the City will be verified in writing and examined on
-
a surprise basis during the year by the City's independent auditors as part of
5
IV
the City's annual independent audit.
STRUCTURE AND RESPONSIBILITY
This section of the Policy defines the overall structure of the investment management
program.
A. Responsibilities of the Finance Department
The Finance Department is charged with responsibility for maintaining custody
of all public funds and securities belonging to or under the control of the City
and for the deposit and investment of those funds in accordance with principles
of sound treasury management and in accordance with applicable laws and
ordinances.
B. Responsibilities of the Finance Director
The Finance Director is appointed by the City Manager and is subject to his or
her direction and supervision. The Finance Director is charged with the
responsibility of the conduct of all Finance Department functions, including the
custody and investment of City funds, and the development of procedures to
implement this investment policy. The Finance Director is further responsible
for the duties and powers imposed by the general laws of the State of California
upon City Treasurers, City Assessors and City Tax Collectors.
C. Responsibilities of the City Manager
The City Manager is responsible for directing and supervising the Director of
Finance. He or she is responsible further to keep the City Council fully advised
as to the financial condition of the City.
D. Responsibilities of the City Council
The City Council shall consider and adopt a written investment policy. As
provided in that policy, the council shall receive, review and accept monthly
investment reports.
E. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the City Manager,
Assistant City Manager, and the Director of Finance/City Treasurer. The
committee shall meet bi-monthly to discuss cash flow requirements, the monthly
investment reports, investment strategy, investment and banking procedures,
and significant investment related work projects being undertaken in each
department which will affect the cash flow management of the City Treasurer.
This will require timely reports from the department heads to the City Treasurer
concerning significant future cash flow requirements. The Committee's
meetings will be summarized in minutes that are distributed to the City Council.
V. REPORTING
The Director of Finance shall prepare a monthly investment report, including a succinct
management summary that provides a clear picture of the status of the current
investment portfolio and transactions made over the past month. This management
summary will be prepared in a manner which will allow the City Manager and City
Council to ascertain whether investment activities during the reporting period have
deviated from the City's investment policy.
The monthly investment report will include the following:
A. A listing of individual securities held at the end of the reporting month.
B. Unrealized gain or loss resulting from appreciation or depreciation by listing the
cost and market value of securities over one year in duration.
C. A description of the current investment strategy and the assumptions upon
which it is based.
D. Average rate of return on City's investments.
E. Maturity aging by type of investments.
VI. REVIEW OF INVESTMENT MANAGEMENT
A. Policy Review
This investment policy shall be reviewed annually by the City Council in
accordance with state law to insure its consistency with respect to the overall
objectives of safety, liquidity, and yield. Proposed amendments to the Policy
shall be prepared by the Treasurer and after review by the Investment
Committee and City Attorney be forwarded to the City Council for consideration.
VII. Authority
This policy was duly reaffirmed by the authority of the City Council of the City of Santa
Clarita on the 27th day of June, 1995.
MAYOR
ATTEST:
CITY CLERK
Exhibit A
DESCRIPTION OF INVESTMENTS
The City of Santa Clarita's investments are placed in those securities as outlined below; the
balance between the various investment instruments may change in order to give the City of
Santa Clarita the best combination of safety, liquidity, and high yield. Surplus funds of local
agencies may only be invested in certain eligible securities. The City of Santa Clarita invests
only in those allowable securities under the State of California Statutes (Government Code
Section 53601, et seq.).
CERTIFICATES OF DEPOSIT
Certificates of deposit allow the City to select the exact amount and day of maturity as well as
the exact depository. Certificates of deposit are issued in any amount for periods of time as
short as 14 days and as long as several years. At any given time, the City may have
certificates of deposit in numerous financial institutions in the future.
The Treasurer may at his discretion waive security for that portion of a deposit which is
insured pursuant to federal law. Currently, the first $100,000 of a deposit is federally insured
by FSLIC or FDIC. It may be to the City's advantage to waive this collateral requirement for
the first $100,000 because the City may receive a higher interest rate. If funds are to be
collateralized, the collateral will be 110% of the deposit in government securities or mortgages
of 150%. At purchase, institutions must not show an operating loss. Banks must have an
equity to asset ratio of at least 6%. Savings and loan associations and savings banks must
have an equity to asset ratio of at least 3%.
LOCAL AGENCY INVESTMENT FUND
Local Agency Investment Fund of the State of California offers high liquidity because deposits
can be wired to the City/Agency checking account in twenty-four hours. Interest is computed
on a daily basis.
This is a special fund in the State Treasury which local agencies may use to deposit funds for
investment. There is no minimum investment period and the minimum transaction is $5,000 in
multiples of $1,000 above that, with a maximum of $20,000,000 for any agency. It offers high
liquidity because deposits can be converted to cash in twenty-four hours and no interest is
lost. All interest is distributed to those agencies participating on a proportionate share
determined by the amount deposited and the length of time they are deposited. Interest is
paid quarterly by directly crediting the local agency's account.
The State keeps an amount for reasonable costs of making the investments, not to exceed
one-half of one percent of the earnings.
The interest rates are fairly high because of the pooling of the State surplus cash with the
surplus cash deposited by local governments. This creates a multi -billion dollar money pool
and allows diversified investments. In a high interest rate market, we do better than LAIF, but
in times of low interest rates, LAIF yields are higher.
U.S. TREASURY SECURITIES
U.S. Treasury securities are highly liquid in addition to being considered a-riskrfree
investment.
U.S. TREASURY BILLS are direct obligations of the United States Government. They
are issued weekly with maturity dates up to one year. They are issued and traded on a
discount basis and the interest is figured on a 360 day basis, actual number of days.
They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a
highly liquid security.
U.S. TREASURY NOTES are direct obligations of the United States Government. They
are issued throughout the year with maturities of 2, 3, 5, and 10 years. Notes are
coupon securities paying interest every six months. The City will not invest in notes
having maturities of longer than five years.
FEDERAL AGENCY SECURITIES
Federal Agency Securities are highly liquid and considered virtually risk-free.
Federal Agency issues are guaranteed directly or indirectly by the United States Government.
All agency obligations qualify as legal investments and are acceptable as security for public
deposits. They usually provide higher yields than regular Treasury issues with all of the same
advantages. Examples are:
FNMA's (Federal National Mortgage Association) are used to assist the home mortgage
market by purchasing mortgages insured by the Federal Housing Administration and the
Farmers Home Administration, as well as those guaranteed by the Veterans
Administration.
FHLB'S (Federal Home Loan Bank Notes and Bonds) are issued by the Federal Home
Loan Bank System to help finance the housing industry. The notes and bonds provide
liquidity and home mortgage credit to savings and loan associations, mutual savings
banks, cooperative banks, insurance companies, and mortgage -lending institutions.
Some other federal agency issues are Federal Intermediate Credit Banks Debentures
(FICB), Federal Farm Credit Bank (FFCB), Federal Land Bank Bonds (FLB), Small
Business Administration notes (SBA's), Government National Mortgage Association
notes (GNMA's), Tennessee Valley Authority notes (TVA's), and Student Loan
Association notes (SALLIE MAE's). These investments will occasionally be used.
NEGOTIABLE CERTIFICATES OF DEPOSIT
Negotiable certificates of deposit are high grade instruments, paying a higher interest rate
than regular certificates of deposit. They are liquid because they can be traded in the
secondary market.
2
Negotiable Certificates of Deposit (NCD's) are unsecured obligations of the financial
institution, bank or savings and loan, bought at par value with promise to pay face value plus
accrued interest at maturity. The primary market issuance is in multiple of $1 million, the
secondary market usually trades in denominations of $500,000 although smaller lots are
occasionally available. Local agencies may not invest more that 30% of their surplus money
in negotiable certificates of deposit. NCD's will only be placed with the largest and most
fi ancially sound institutions.
BANKERS ACCEPTANCES
Bankers Acceptances are frequently the highest in yield, are safe investments and are highly
liquid.
Bankers Acceptances are a short-term credit arrangement to enable businesses to obtain
funds to finance commercial transactions. They are time drafts drawn on a bank by an
exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the
bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a
high grade negotiable instrument. Acceptances are purchased in various denominations for
30, 60, or 90 days, but no longer than 270 days. The interest is calculated on a 360 day
discount basis similar to Treasury Bills. Local agencies may not invest more than forty -
percent of their surplus money in bankers acceptances.
COMMERCIAL PAPER
Commercial Paper allows the investment of large amounts of money for one to seven days at
rates higher than we can earn from our saving account. Commercial paper is a short-term
unsecured promissory note issued by a corporation to raise working capital. These negotiable
instruments are purchased at a discount to par value. Commercial paper is issued by
corporations such as Shearson -American Express, International Business Machines (IBM) and
Pacific Gas and Electric Company, etc.
Local agencies are permitted by state law to invest in commercial paper of "prime" quality of
the highest ranking or of the highest letter and numerical ratings as provided by Moody's
Investor's Service, Inc. or Standard and Poor's Corporation. Purchases of eligible commercial
paper may not exceed 180 days maturity nor exceed thirty percent of the local agency's
surplus funds.
PASSBOOK SAVINGS OR MONEY MARKET ACCOUNT
Passbook savings account allows the City to transfer money from checking to savings and
earn short-term on odd amounts of money which are not available for longer investment. The
savings account is similar to an inactive deposit except not for a fixed term. The interest rate
is much lower than CD's, but the savings account allows flexibility. Funds can be deposited
and withdrawn according to daily needs. The City of Santa Clarita has one money market
demand account.
LOS ANGELES COUNTY POOLED FUND
Los Angeles County Pooled Fund is similar to the State of California Local Agency Investment
Fund (LAIF). The County fund provides protection, liquidity and higher than market rates for
short-term securities.
The County Pooled Fund is managed by the county Treasurer and interest is competitive to
money market rates. There are no restrictions to number of transactions or dollar amount of
deposits.. The funds deposited by a local agency in the County Pooled Fund cannot be
attached by the County.
All interest is distributed to those agencies participating on a proportionate share determined
by the amounts deposited and the length of time they are deposited. Interest is paid monthly
by directly crediting the agency's L.ACP]E accoun t. The County keeps an amount for
reasonable administrative costs of the pool. The Los Angeles County Treasurer has stated
the range of administrative costs is 11 to 13'basis points (approximately 0.11% to 0.13% of
the pool fund average daily balance).
MUTUAL FUND
Mutual Fund is another authorized investment allowing the City to maintain liquidity and
receive money market rates.
Mutual Funds are referred to in the Government Code, Section 53601,L, as "shares of
beneficial interests issued by diversified management companies". The Mutual Fund must be
restricted by its by-laws to the same investments as the local agency. These investments are
Treasury issues, Agency issues, Bankers Acceptance, Commercial Paper, Certificates of
Deposit and Negotiable Certificates of Deposit. The quality rating and percentage restrictions
in each investment category applicable to the local agency also applies to the Mutual Fund.
A further restriction is that the purchase price of shares of the mutual funds shall not include
any sales commission. Investments in mutual funds shall not exceed fifteen percent of the
local agency's surplus money.
rd
Exhibit B
Glossary of Investment Terms
BROKER: Person who acts as an intermediary between a buyer and a seller.
COLLATERAL: Asset pledged to a lender until a loan is repaid. Also refers to securities
pledged by a bank to secure deposits of public monies.
DEALER: Person who acts as a principal buying and selling for his own account.
DISCOUNT: The difference between the purchase price of a security and its value at maturity
when quoted at lower than face value.
LIQUIDITY: The ability to convert assets into cash without a significant loss.
MARKET VALUE: Price at which a security is currently being sold.
MATURITY: The date upon which the principal amount of a security is due and payable.
PAR VALUE: The face value of a security.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of banks and investment dealers authorized to buy and sell
government securities in direct dealings with the Federal Reserve Bank of New York.
SAFEKEEPING: Storage of securities provided as a service by a bank.
TRADE DATE: Day on which a security trade actually takes place.
"WHEN, AS, AND IF ISSUED": A transaction made conditionally because a security,
although authorized, has not been issued.
YIELD: Annual rate of return on an investment, expressed as a percentage.
1
Exhibit C
List of the Primary Government Securities Dealers
Reporting to the Market Reports Division of the
Federal Reserve Bank of New York
BA Securities, Inc.
Barclays de Zoete Wedd Securities Inc.
Bear, Stearns & Co., Inc.
BT Securities Corporation
Chase Securities Inc.
Chemical Securities Inc.
Citicorp Securities, Inc.
CS First Boston Corporation
Daiwa Securities America Inc.
Dean Witter Reynolds Inc.
Deutsche Bank Securities Corporation
Dillon, Read & Co. Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Eastbridge Capital Inc.
First Chicago Capital Markets, Inc.
Fuji Securities Inc.
Goldman, Sachs & Co.
Greenwich Capital Markets, Inc.
Harris Nesbitt Thomson Securities Inc.
HSBC Securities, Inc.
Aubrey G. Lanston & Co., Inc.
Lehman Government Securities, Inc.
Merrill Lynch Government Securities Inc.
J. P. Morgan Securities, Inc.
Morgan Stanley & Co. Incorporated
NationsBanc Capital Markets, Inc.
The Nikko Securities Co. International, Inc.
Nomura Securities International, Inc.
Paine Webber Incorporated
Prudential Securities Incorporated
Salomon Brothers Inc.
Sanwa Securities (USA) Co., L.P.
Smith Barney Inc.
SBC Capital Markets Inc.
UBS Securities Inc.
S. G. Warburg & Co., Inc.
Yamaichi International (America), Inc.
Zions First National Bank
NOTE: This list has been compiled and made available for statistical purposes only and has
no significance with respect to other relationships between dealers and the Federal Reserve
Bank of New York. Qualification for the reporting list is based on the achievement and
maintenance of the standards outlined in the Federal Reserve Bank of New York's
memorandum of January 22, 1992.
Market Reports Division
Federal Reserve Bank of New York
January 5, 1995
Exhibit D
US&C
Municipal Treasurers' Association
of the United Stators and Canada
October 26, 1994
Steve Stark
Director of Finance/lYeasurer
City of Santa Clarita
23920 Valencia Boulevard, #300
Santa Clarita, CA 91355
Dear Mr. Stark:
The Municipal Treasurers' Association is pleased to present the City of Santa
Clarita with the Associations Certification of Excellence Award.
Members of the Associations Investment Policy Certification Committee
congratulate the City of Santa Clarita for it's success in developing an outstanding
written investment policy which meets the criteria set forth by the Association's
Investment Policy Certification Program.
Our review of your investment policy is limited to the documentation submitted.
The Certification of Excellence is not a guarantee against loss due to economic
and market conditions or human behavior.
The Associations Investment Policy Certification Committee Chairman, Rod Rich,
will be presenting all recipients with the Certification of Excellence Award at the
Association's 1995 Annual Conference in Spokane, Washington, The awards will
be presented during the Awards Luncheon on Wednesday, August 16_ We hope
that you will be able to attend this luncheon, however, if your schedule does not
permit you to attend, please call me at (202) 833-1017.
The City of Santa Clarita is to be commended for enhancing its fiscal
responsibility in the management of fiscal funds.
Sincerely,
z
acey L. Cdane
Executive Director
1229 Nineteenth Street, N.W_
Washington, D.C. 20036
(202) 833-1017
Fax X2021 833-0375