HomeMy WebLinkAbout1987-07-09 - Resolution No. 87-22RL50LUTION NO. 87--22
RESOLUTION OF THE BOARD OF DIRECTORS OF
YORBA LINDA WATER DISTRICT
SETTING FORTH PUBLIC FUNDS INVESTMENT POLICY
WHEREAS, the District is in possession of public funds that are not
required for immediate expenditure, and are available for
investment; and,
WHEREAS, a policy setting forth guidelines for the investment of said
funds is necessary for compliance with the principles of
sound financial management; and,
WHEREAS, the Board of Directors of the Yorba Linda Water District
desire that such a policy of investing said funds be adopted.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Yorba Linda Water District as follows:
Section 1: Public funds held by the District may be divided
into three categories:
(1) Those funds that are allocated for immediate
expenditure on District operations as authorized by the
Board of Directors at their bi-monthly meetings;
(2) Those funds that are allocated for use in an
intermediate time frame, such as budgeted purchases that
have not been delivered;
(3) Those funds that are allocated for future use, and that
do not fall into the above categories. This policy sets forth
guidelines for the investment of such funds that are
identified as "available for investment."
Section 2: Priorities regarding the investment of
District held public funds are:
(1) The safety of said funds;
(2) The maintenance of sufficient liquidity to conduct
day-to-day operations;
(3) The best return on investments pursuant to the
preceding qualifications.
I
• •
Section 3: The District may invest funds that are
available for investment in:
(1) Banks or Savings and Loans;
(2) The State Local Agency Investment Fund;
(3) Other investment vehicles as authorized in California
Government Code 553600 et seq. (see Exhibit "A").
Section 4: All investments of sums of more than $ 100,000
in a single institution shall be made in institutions approved
by the Board of Directors, and shall be collateralized in
accordance with state law.
Section 5: Investments of sums of $100,000 or less do
not require the approval of the Board of Directors or need to
be collateralized. However, such investments must be made
in savings institutions covered by federal deposit insurance.
Investments shall be made in sums of more than $100,000
whenever possible,
Section 6: The Board of Directors delegates the authority
for investing District funds to the General Manager, who
may in turn delegate this authority to a designated
representative.
Section 7: The General Manager or his designated
representative shall maintain a cash flow analysis for
projecting available cash requirements. All funds not
required for immediate or intermediate use may be invested
in accordance with this policy,
Section 8: Each month the General Manager or his
designated representative shall furnish the Board of
Directors with a report including, but not limited to:
(1) A list of the previous month's investments;
(2) A list of institutions where investments were placed;
(3) Dates of transactions;
(4) Dates of maturity;
(5) Interest rates on said investments.
IA
•
PASSED AND ADOPTED this 9th day of July, 1987 by the following
called vote:
AYES: Cromwell, Armstrong, Knauft, Fox, Mills
NOES: none
ABSENT: none
ABSTAIN: none
President
Yorba Linda Water District
ATTEST:
Secretar ,
Yorba Linda Water District
EXHIBIT "A"
CALIFORNIA GOVERNMENT CODE SS 53601
§ 53601. 'circumstances authorizing investments; authorized investments
Text of section operative until Jan. 1, 1988.
The legislative body of a local agency having money in a sinking fund of, or surplus money in, its
treasury not required for the immediate necessities of the local agency may invest a portion of the 1
money which it deems wise or expedient in:
(a) Bonds issued by the local a encv, including bonds payable solely out of the revenues from a
revenue-producing property ownel, controlled, or operated by the local aQencv or by a department.
board, agency, or authority of the local aQencv.
(b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which
the faith and credit of the United States are pledged for the payment of principal and interest.
icl Retci-,te!cd state warrants or trea.-,ury notei or bonds of !his state. including bonds payable
sole! wit of the revenuer from a revenuN-prod,irin¢ property owned, controller!. or operated by the
state or by a department. board, agency, or authority of the stair.
(d) Bonds. notes. warrants, or other evidences of indebtedness of any li-eal :agency within this
Gate. including bonds payable solely out of the revenues f:ow a revenue-producing property owned,
controlled. or operated by the local agency, or by a department, hoard, agency. or authority of the
local aQencv.
(e) Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit
hanks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley
Authority, or in obligations, participations, or other instruments of or issued by, or fully guaranteed
as to principal and interest by, the Federal National Mortgage Association; or in guanrnteed portions
of Small Business Administration notes; or in obligations, participations, or other instruments oft or
issued by a federal agency, or a United States government-sponsored enterprise.
(f) Bills of exchange or time drafts drawn on and accepted by a commercial bank. otherwise known
as bankers acceptances, which are eligible for purchase by the Federal Reserve System. Purchases
of bankers acceptances may not exceed 270 days maturity- or 40 percent of the agency's surplus
money which may be invested pursuant to this section. However, no more than 30 percent of the
agency's surplus funds may be invested in the bankers acceptances of any one commercial bank
pursuant to this section.
This subdivision does not preclude a municipal utility district from investing any surplus money in
its treasury in any manner authorized by the Municipal Utility District Act. Division 6 (commencing
with Section 11501) of the Public Utilities Code.
(g) Commercial paper of "prime" quality of the highest ranking or of the highest letter and
numerical !sting as provided for by Moody's Investors Service, Inc., or Standard and Poor's
Corporation. Eligible paper is further limited to issuing corporations that are organized and
operating within the United States and having total assets in excess of five hundred million dollars
($500,000.000) and having an "A" or higher rating for the issuer's debt, other than commercial paper,
if any, as provided for by Moody's Investors Service, Inc., or Standard and Poor's Corporation.
Purchases of eligible commercial paper may not exceed 180 days maturity nor represent more than
10 percent of the outstanding paper of an issuing corporation. Purchases of commercial paper may
not exceed 15 percent of the agency's surplus money which may be invested pursuant to this section.
An additional 15 percent, or a total of 30 percent of the agency's surplus money, may be invested
pursuant to this subdivision. The additional 15 percent may be so invested only if the dollar-weight-
ed average maturity of the entire amount does not exceed 31 days. "Dollar-weighted average
maturity" means the sum of the amount of each outstanding commercial paper investment multiplied
by the number of days to maturity, divided by the total amount of outstanding commercial paper.
(h) Negotiable certificates of deposits issued by a nationally or state-chartered bank or a state or
federal association (as defined by Section 5102 of the Financial Code) or by a state-licensed branch of
a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the
agency's surplus money which may be invested pursuant to this section. For purposes of this
section. negotiable certificates of deposits do not come within ' ' ' Article 2 (commencing with
Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5, except that the amount so invested shall
be subject to the limitations of Section 53638.
(i) Investments in repurchase agreements or reverse repurchase agreements of any securities
authorized by this section, so long as the proceeds of the reverse repurchase agreement are invested
solely to supplement the income normally received from these securities. Investment in a reverse
repurchase agreement shall be made only upon prior approval of the legislative body of the local
agency. For purposes of this section, the tern "repurchase agreement" means a purchase of
securities by the local agency pursuant to an agreement by which the seller will repurchase the
securities on or before a specified date, and for a specified amount and will deliver the underlying
securities to the local agency by book entry, physical delivery, or a third-party custodial agreement.
The transfer of underlyinY securities to the coupternaJ~y bank's customer book-entrv account may be
used for book-entry dellvt The tern "counteroax for the oymgses of this subdivisiop means
Tee other oartv to the ►xanj ption. A countgrgar v bank's trust departmeppt or safe eeomg
doarmerlt rra! be used for ohvsrcal delivery of the undeerlyin¢ ~ecurity. 1 he term of repurchase
agreements shall be for one year or less. The tern "secuntes,' for purpose of repurchase under
this subdivision, means securities of the same issuer, description, issue date, and maturity. The term
"reverse repurchase agreement" means a sale of securities by the local agency pursuant to an
I 1_9~.
agreement by which the local agency will repurchase such securities on or before a specified date and
for a specified amount.
(j) Mortgage securities purchased under an agreement to resell pursuant to subdivision (i),
provided that the mortgage securities are eligible investments under subdivision (a) or (b) of Section
13000 of the Financial Code. A local agency's investment in a mortgage security shall not exceed 95
percent of the mortgage securities' fair market value and shall not exceed 25 percent of the agency's
surplus money which may be invested pursuant to this section.
(k) Medium-term corporate notes of a Taxi um of five vears maturity issued by corpofatipps
oner~tine within the united States. Securities eligible or il)~vestment under this subdivisions a Jl be
rated in the too three note rating categories by two of (he i.hree larger] n1ponally recfl pized rating
se ces. Purch se of medium-term corporate notes may not exceed 15 Percent off e agency's
surplus money which may be invested pursuant to this section.
l)) Sha'a of beneficial igte est issue by dive r~'fied rrl ppaRemegqt comaiPieas defined in Sectioqq
3'1UIm o the even a and taxation G de, igvelIng in the secur{ttes and obligaty ns as auyhorized
ty sub Uvisioq~ ia) to (m), incRd'IvIsjn. e, of this section and which o iUri itq t e nve~finent and po~9it
restrjctlogf of this article Article 2 (commencing wiffh ~ectt w on 53 p~. to be eligible for
inv4 ,+tmer pursuant to this pthese com~~11 i~g shai either(1) a tain the big est ranKinq
or the ~Rest etter and nume( rat Rave by not less than two o l tree larKest
reco¢r l ~ized rating services, or 1') ~ave an investment advisor reg{►~~.tere~ with the Se urine
nationally he
and E c ange Co missiop with not less than five vear~ exper-e ce invei.ti in the securi es anj
obliga Ions as authorizel by subdivis ns a) to ml, inclusive, o is sse~ction and with an,9e, underC
pure
{nanaee ent in a~ccess of five hundre mil ion dollars 1$500,000,0 )01, net
nclhase price of stares o{
beneficial interest nurchasgd DursuanF t is subdivision shall not iude anv commissiop that Ehese
comR#pi s may cha ge and shall not exceed 15 oercenE of the agency's surplus money which may be
inveseYpursuant ~o this section.
(m) Notwithstanding anything to the contra, Z cal in this $ect'oJ~, ection 53635 or anv othej
provision of law, cno evy held by a trygtee or fiscal agent and nl4d¢e to the pay(nent or secut~ty of
bonds or other indeb ednrss. or obligations un r a lease, insta men sale. or other agreemen of a
local( gency. or certi'icates of pa2cination in those bond,9 indetoness, or lease. installment sale,
or otter sir emeil- may be ippvggsted in accordance with the gtatutoprovisions ¢overnigR the
issy~nce o~ hose ton ,9 rodeaatedness or (ease, install9pny sale, or other agreement, or, to the
extent not inconsisten~tfierewith or if there are no spef fic stayutorv orovisio s, in accpprdance with
the ordinance, resolution, indenture. or agreement of the local agency providing for the issuance.
This section shall remain in effect only until January 1, 1988, and as of that date is repealed, unless
a later enacted statute, which is enacted before January 1. 1988, deletes or extends that date. If that
date is not deleted or extended, then, on and after January 1, 1988, pursuant to Section 9611 of the
Government Code, Section 53601 of the Government Code, as amended by Section 1.5 of Chapter 567
of the Statutes of 1983, shall have the same force and effect as if this temporary provision had not
been enacted.
(Amended by Stats.1983, c. 550, p. § 1; Stats.1983, c. 567, p. § 1.5: Stats.1984, c. 741, p.
§ 1; Stats.1985, c. 983, p. § 14. urgency, eff. Sept. 26, 1985; Stats.1985, c. 1526, p.
§ 1; Stats.1986, c. 784, § 1; Stats.1986, c. 853, § 1, urgency, eff. Sept. 17, 1986; Stats.1986, c. 853,
§ 1.5, urgency, eft. Sept. 17, 1986, operative Jan. 1. 1987.)