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HomeMy WebLinkAbout2006-06-13 - AGENDA REPORTS - STATEMENT OF INVESTMENT POLICY (2)Agenda Item: 17 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Darren Hernandez DATE: June 13, 2006 SUBJECT: CITY OF SANTA CLARITA'S FISCAL YEAR 2006-07 STATEMENT OF INVESTMENT POLICY DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council adopt the City of Santa Clarita's Fiscal Year 2006-07 Statement of Investment Policy, and direct staff to submit the policy to the Association of Public Treasurers United States and Canada (APT US&C) for certification in their award program BACKGROUND Per California Government Code Section 53646, the City Treasurer may annually present the City's Investment Policy to the City Council to reaffirm or make any changes to the existing policy. The City's Investment Policy has been submitted to the APT US&C every year for the past eleven years and has received the Certificate of Excellence for each of these years. 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. California Government Code Sections 53646 (g) and 6) require the City to submit its second and fourth quarter investment reports and its annual investment policy to the California Debt and Investment Advisory Commission. The proposed Investment Policy for 2006-07 adds a paragraph detailing this requirement. This is the only change proposed, and all other sections " EU remain unchanged. ALTERNATIVE ACTIONS Other actions as determined by the City Council. FISCAL IMPACT None by this action. ATTACHMENTS City of Santa Clarita Statement of Investment Policy for Fiscal Year 2006-07 available in the City Clerk's Reading File