1989 RES R-23-89 - Laserfiche WebLink

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INVESTMENT POLICY OF THE CITY OF COLTON I. Policy Statement ---------------- The purpose of this Statement of Investment Policy is to provide governing guidelines for prudent cash management and investment of public funds until such time as the funds are needed to pay the obligations of the City. II. Investment Objective -------------------- The ultimate objective of the Treasurer's investment program is to acheive a reasonable rate of return on the portfolio consistent with short-term interest rates, after having given primary consideration to safety and preservation of capital and liquidity sufficient to meet daily cash flow needs. The priority of these factors in making investments are: (1) Safety and preservation of capital (2) Liquidity (3) Yield I, the Treasurer, shall govern investment activities pursuant to the "prudent man rule" as defined in Section 2261 of the California Civil Code and as applied to the investment portfolio as a whole. The investment principle stated here is that in: "...investing ... 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, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of their capital..." III. The Treasurer's Authority for Making Investments ------------------------------------------------ The Treasurer's authority for making investments has been granted by the City Council Resolution #9298 - dated March 15, 1983, as required by Section 53607 of the California Government Code. Further statutory authority for the Treasurer's investment functions and responsibilities may be found in Sections 53601 and 53630 et. seq. of the Government Code.