HomeMy WebLinkAboutRes - 2003.35 - Establishing an Investment Policy for Public Funds11.0 DIVERSIFICATION:
The East Valley Water District will diversify its investments by security type and institution. It is
the policy of the East Valley Water District to diversify its investment portfolio. Assets shall be
diversified to eliminate the risk of loss resulting from over concentration of assets in a specific
maturity, a specific issuer or a specific class of securities. Diversification strategies shall be
determined and revised periodically. ht establishing specific diversification strategies, the
following general policies and constraints shall apply:
a) Portfolio maturities shall be matched versus liabilities to avoid undue concentration in
a specific maturity sector.
b) Maturities selected shall provide for stability of income and liquidity.
c) Disbursement and payroll dates shall be covered through maturities investments,
marketable U.S. Treasury bills or other cash equivalent instruments such as money market
mutual funds.
12.0 REPORTING
In accordance with CGC §53646(b)(1), General Manager and/or Financial Officer shall submit to
each member of the Board of Directors a quarterly investment report. The report shall include a
corriplete description of the portfolio, the type of investments, the issuers, maturity dates, par
valves and the current market values of each component of the portfolio, including funds managed
for :East Valley Water District by third party contracted managers. The report will also include the
som-ce of the portfolio valuation. As specified in CGC §53646 (e), if all funds are placed in LAIF
and/or FDIC-insured accounts, the foregoing report elements may be replaced by copies of the
latest statements from such institutions. The report must also include a certification that (1) all
inv<;stment actions executed since the last report have been made in full compliance with the
Investment Policy and, (2) the East Valley Water District will meet its expenditure obligations for
the next six months is required by CGC §53646 (b) (2) and (3) respectively. The General Manager
and/or Financial Officer shall maintain a complete and timely record of all investment
transactions.
13.0 INVESTMENT POLICY ADOPTION:
The Investment Policy shall be adopted by resolution of the East Valley Water District. Moreover,
the Policy shall be reviewed on an annual basis, and modifications must be approved by the Board
of Directors.
ADOP'CED AND APPROVED:
Name:
Donald Goodin
Title: President. Board of Directors
Date: JuIv~2003
Attachment: California Government Code Section 53600 and Investments Authorized by East Valley
Water District in Accordance with California Government Code Section 53601
effective 7-23-03).
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INVESTMENTS AUTHORIZED BY EAST VALLEY WATER
D][STRICT IN ACCORDANCE WITH CALIFORNIA GOVERNMENT
CODE SECTION 53601
C(pC
Secition
Investment Type Maximum
Maturit
Authorized
Limit %
Required
Ratin
53601(a)Local Agency Bonds 5 Years None None
536C~1(b)U.S. Treasury Bills, Notes or Bonds 5 Years None None
13601 (c)State Registered Warrants, Notes or Bonds 5 Years None None
53601 (d)Notes & Bonds of other Local Calif. Agencies 5 Years None None
13601 (e)U.S. Agencies 5 Years None None
53601 (h)Negotiable Certificates of Deposit 5 Years 30%None
53601 (k)Money Market Mutual Funds & Mutual Funds*5 Years 15%2-AAA
53601 (m)Collateralized Bank Deposits 5 Years None None
53601 (d)Local Agency Investment Fund (LAIF)N/A None None
Mutual Funds maturity may be defined as the weighted average maturity; money marked mutual
fimds must have an average maturity of 90 days or less, per SEC regulations.
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