AR 011706 Investment Policy - Laserfiche WebLink

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INVESTMENT POLICY OF THE CITY OF COLTON III. The Treasurer's Authority for Making Investments The Treasurer's authority for making investments has been granted by the City Council Resolution #54-01 - dated June 16, 2001 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 53600, 53601, 53630, 53821, 53841,53852 and 83859 et. seq. of the Government Code. IV. Legal Restrictions Pertaining to Investments The law establishes certain restrictions on the types of securities and deposit classifications that are to be used in making investments of public funds. In certain instances, the law defines the maximum maturity, credit rating, and other criteria intended to trnimize risk. The statutes containing the types of securities and deposits permissible for investment purposes by the City may be found in Sections 53601 et. seq. of the Government Code. While the law defines the parameters for making investments, it does not define the risk. The Treasurer reserves the right to further restrict the investments permissible by law and to use his own discretion, in light of prevailing market conditions, the economy, and other factors, to limit the degree of risk at any moment in time. Except for specific policy restrictions which follow, those investments presently authorized by the Treasurer are shown in Schedule I. V. Authorized Dealer List Schedule II VI. Treasurers Specific Restrictions and Guidelines Governing Investments The following restrictions apply to all investments purchased by the Treasurer: Although permissible by statute, no investments are authorized in: (a) Reverse Repurchase Agreements (b) Small Business Administration Obligations. (c) Bond Mutual Funds (d) Collateralized Mortgage Obligations. (e) Futures and options 2. All investment transactions shall be made after first having given consideration to risk and the credit worthiness of the financial institution, liquidity, and yields. All things being equal, investments shall be made with the institution offering the highest, competitive yield.