SR 06:112 - Laserfiche WebLink

COLLA TERALIZA TION Collateralization will be required on active and inactive deposits in accordance with Government Code Section 53651, 53651.2, and 53652, which set forth the eligible securities and the required value of the securities to collateralize these deposits. Whenever possible, the City shall request that u.S. Treasury and Government securities be used as collateral. Repurchase agreements will be collateralized 102% with securities of the U.S. Government or its Agencies, marked to market daily. SAFEKEEPING AND CUSTODY Securities purchased from brokers/dealers will be held by a third party custodian designated by the Director of Finance and evidenced by safekeeping receipts. Securities purchased through the City's financial institution shall be held by the institution's agent. Securities do not literally have to be held in the name of the City but ownership is evidenced through safekeeping or custodial receipts and/or statements. TRUST AGREEMENTS The City shall direct the investment activities of trustees. Such direction shall be in keeping with the terms and conditions of its trust agreements, applicable law and policies set forth in this document. DIVERSIFICATION The City will diversify its instruments by security type and institution, meeting at least the minimum requirements as outlined in Government Code Section 53601. MAXIMUM MATURITIES To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. The City may directly invest in securities maturing more than 5 years from the date of purchase if they are authorized by the City Council. After Council authorization, no waiting period is required before such an investment is made. The City may invest proceeds of bond issuances or Certificates of Participation for a term exceeding five years, provided the City Council authorizes such investments as part of the legal documents. INTERNAL CONTROL The Director of Finance shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. PERFORMANCE STANDARDS The investment portfolio will be designed to obtain a market average rate of return. Safety and liquidity, however, will continue to be the predominant emphasis.