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HomeMy WebLinkAbout1989-07-27 - Resolution No. 89-240 0 RESOLUTION NO. 89-24 RESOLUTION OF THE BOARD OF DIRECTORS OF THE 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. Section 1: The District may invest funds that are available for investment in: (1) Banks or Savinq§-@nd Loan2 Cash will be invested only in FDIC or FSLIC insured or fully collateralized certificates of deposit. Collateral for a given investment must be 110 percent of principal for governmental securities collateral and 150 percent of principle for first mortgage collateral. The institution must maintain a net worth to asset ratio of at least 3.0 percent, and a positive earnings record. The bank or savings and loan must be located in California. The maximum maturity shall be five years. No limit will be placed on the percentage total invested in this category. (2) The State Local Aaen*nvestment Fund • The amounts invested in this category is limited to $10 million plus bond proceeds. No limit will be placed on the percentage total in this category. (3) Orange County Treaaurer's Cominc Ind Investment Pool The amounts invested in this category is limited to $5 million. No limit will be placed on the percentage total in this category. (4) Treasury Bills. Notes and Bonds - Government Code Section 53601(a-c) The maximum maturity shall be limited to five years. Investments in this category will be no greater than 15% of the portfolio in the aggregate. (5) Obligations Issued by Government_A,gencies - Government Code Section 53601(.0 The District will require physical delivery of these securities to an acceptable safekeeping account in the District's name and must be properly insured. Examples of these securities include Federal National Mortgage Association, Federal Land Bank and Federal Home Loan Bank. Maturities are limited to five years. Maximum investment of 15% of the portfolio in the aggregate. (6) Medium-Term Notes - Government Code Section 53601(i) The corporation must be domestic and the notes must be issued in the United States. The corporation must be rated AA or better by a nationally recognized rating service. The maximum maturity is limited to five years and the maximum percentage allowable for investment is 10% of the portfolio in the aggregate. (7) Banker's Acce=nces-Government Code Section 53601 (fl The maximum term may not exceed 270 days and the maximum percentage allowable for investment is 5% of the portfolio in the aggregate. (8) Commercial Paper-Government Code Section 53601(x) The corporation must be domestic and the notes must be issued in the United States. The corporation must also have total assets in excess of five hundrd million dollars ($500,000,000). The corporation must be rated AA or better by a nationally recognized rating service. The maximum maturity is limited to 180 days and the maximum percentage allowable for investment is 5% of the portfolio in the aggregate. Sec ti n 4: All investments of sums of more than $100,000 and less than $1,000,000 in a single institution shall be made in institutions approved by the Board of Directors (see Exhibit A) and shall be collateralized in accordance with state law. Investment amounts over $1,000,000 or more in one institution, with the exception of LAIF, requires approval of the Board of Directors. Secthn 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: 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. Section 9: This policy supersedes all previously authorized resolutions and minute orders. PASSED AND ADOPTED this 27th day of July, 1989 by the following called vote: Ayes: STERLING FOX, PAUL ARMSTRONG, WHIT CROMWELL, ARTHUR KORN, ROY KNAUFT Noes: 0 Absent: Abstain: President Yorba Linda Water District Attest: Secretary Yorba Linda Water Distric 6 6 EXHIBIT A List of institutions authorized by the Board of Directors of the Yorba Linda Water District for investments over $100,000: California Federal Savings and Loan Glendale Federal Savings Great American First Savings Bank Great Western Savings Home Federal Savings Imperial Savings Association Valley Federal Savings