HomeMy WebLinkAbout2002-05-14 - AGENDA REPORTS - INVESTMENT POLICY (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval.
Item to be presented by: Barbara Boswell
DATE: May 14, 2002
SUBJECT: CITY OF SANTA CLARITA'S FISCAL YEAR 2002-03 STATEMENT OF
INVESTMENT POLICY
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
Adopt the City of Santa Clarita's Fiscal Year 2002-03 Statement of Investment Policy, and
direct staff to submit the policy to the MTA of US&C for certification award program.
Per California Government Code Section 53646, 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 City's Investment Policy has been submitted to the Municipal
Treasurers Association of United States & Canada (MTA) every year for the past seven years
and has received the Certificate of Excellence Award for each of these years. As part of the
review process, the MTA may recommend changes that are then incorporated in to the following
update.
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 Person 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 emphasize 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 by staff, based on
comments received from the MTA, including re -ordering the sections so that the Policy has a
more readable flow and is in the order in which things happen. The personnel assignments in
Section VI., Delegation of Authority, were updated, and the verbiage regarding Internal
Controls in Section VI., Delegation of Authority, was deleted, as it is also listed in Section XV.
Internal Controls, in more detail.
A P 0 00 56 Agenda Item:
STATEMENT OF INVESTMENT POLICY
May 14, 2002 — Page 2
ALTERNATIVE ACTIONS
Other actions as determined by the City Council.
FISCAL IMPACT
None by this action.
ATTACHMENTS
2002-03 Investment Policy Changes
City of Santa Clarita's Fiscal Year 2002-03 Statement of Investment Policy
(Available in City Clerk's reading file.)
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C=d1\InVeSt tP0HCy2002-03
2002-03 Investment Policy Changes
Section:
VI. Delegation of Authority
• Renamed Personnel
• Deleted paragraph on Internal Controls because this is repeated in Section XV., Internal
Controls
Appendix:
E. List of Primary Dealers
• Updated per the list on the Federal Reserve Bank of New York's website
Other
• Reordered Sections so the policy is more readable and in the order that the events actually
do happen. Per: MTA recommendation