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Resolution 1984-79 . . <:f RESOLUTION NO. 84 - 79 RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY AUTHORIZING INVESTMENT PROCEDURES FOR POOLED FUNDS. WHEREAS, the State of California Government Code, commencing with Section 53600 sets forth investment procedures for all cities; and WHEREAS, it is necessary for the City to officially authorize the participation in said procedures; and ~~EREAS, the attached State of Investment Policy sets forth the procedure for the City of Gilroy. NOW, THEREFORE, BE IT RESOLVED that the Finance Department shall invest funds as outlined in the State of California Government Code and the Statement of Investment Policy for the City of Gilroy. PASSED AND ADOPTED this 17th day of December, 1984, by the following vote: AYES: COUNCIL ~ffi~ffiERS: ALBERT, GAGE, KLOECKER, MUSSALLEM, PATE, VALDEZ and HUGHAN. NOES: COUNCIL }ffiMBERS: None ABSENT: COUNCIL MEMBERS: None APPROVED: ATTEST: ;dl<<J~~. ~ RESOLUTION NO. 84 - 79 - . . . CITY OF GILROY STATMENT OF INVESTMENT POLICY As a charter city, Gilroy operates its pooled idle cash investments under the prudent man rule. This affords the City a broad spectrum of investment opportunities so long as the investment is deemed prudent and is allowable under current legislation of the State of California and the Charter of the City of Gilroy. Gilroy strives to maintain the level of investment of all idle funds as near 100% as possible through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the Finance Department, and investments are made in the following media: . Securities of the U. S. Government, or its agencies. . Certificates of Deposit (or Time Deposits) placed with commercial banks and savings and loan companies . Bankers Acceptances. . Negotiable Certificates of deposit. . Local Agency Investment Fund demand deposits. . Repurchase Agreements. Criteria for selecting investments and the order of priority are: 1. Safety 2. Liquidity 3. Yield Government and agency paper, and repurchase agreements, are the highest quality invest- ments available in terms of safety and liquidity. Certificates of deposit, savings accounts, and bankers acceptances are insured or collateralized. Most investments are highly liquid, with the exception of collateralized certificates of deposit held by banks and savings and loan companies. Maturities are selected to anticipate cash needs, thereby obviating the need for forced liquidation. Gilroy attempts to obtain the highest yield obtainable when selecting investments, provided that criteria for safety and liquidity are met. Ordinarily, because invest- ments carry a positive yield curve (i.e., longer term rates generally are higher than shorter maturities), the City attempts to ladder its maturities to meet anticipated cash needs in such a way that new investment money can be placed in maturities that carry a higher rate than is usually available in the extremely short market of 30 days or under. The City operates its investment pool with many State and self-imposed constraints. It does not buy stocks; it does not speculate; it does not deal in futures or options. Longer-term investments (over one year) will generally be limited to maturities of five years or less, and only rarely will they extend to ten years. The basic premise underlying Gilroy's investment philosophy is to insure that money is always available when needed. - . . ~ I, SUSANNE E. STEINMETZ; City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 84-79 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 17th day of December 19 ~, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 19th day of December 19 84. 2kJ~ r;. City Clerk of the City 0 , # f'