Laserfiche WebLink
CITY OF REDWOOD CITY <br />INVESTMENT POLICY <br /> Last update: 6/22/2016 5 <br />5. Certification of having read and willingness to comply with City’s investment policy. <br /> <br />E. The City Treasurer will conduct an annual review of the financial condition and registrations <br />of brokers/dealers on the City’s approved list. <br /> <br />F. A current audited financial statement is required to be on file for each financial institution <br />and broker/dealer with which the City invests. <br /> <br />G. Certificates of deposit will not be placed with an institution once it has received a Cease and <br />Desist order from any bank regulatory agency. <br /> <br />IX. Authorized Investments (with limitation and quality guidelines) <br /> <br />The California Government Code sections 53600 et seq. governs the allowable investments into which <br />a local government agency can enter. These Government Code sections also stipulate as to the portfolio <br />percentage limits and investment quality standards for some but not all permitted investments. The <br />Government Code sections provide a starting point for establishing the City quality standards, <br />percentage limits and maturity levels. Should the Government Code become more restrictive than this <br />policy, the Government Code restrictions shall prevail. <br /> <br />Whenever a maximum allowable percentage of the portfolio is stipulated for any type of security as <br />detailed below, the limit or maximum allowable is determined by the portfolio size or composition at <br />the close of the date on which the security is purchased. <br /> <br />Additional requirements related to some investment types are detailed in the following sections of this <br />policy. <br /> <br />A. United States Treasury Obligations – No Maximum <br />United States Treasury bills, notes, bonds, or those for which the full faith and credit of the United <br />States are pledged for payment of principal and interest. There is no limitation on the percentage <br />of the portfolio that can be invested in this category, although a five-year maturity limitation is <br />applicable. <br />. <br />B. Federal Agency or Government Sponsored Enterprises (GSEs) – Maximum of 70% <br />Securities issued by the following only: Federal Home Loan Banks (FHLB), Federal National <br />Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan <br />Mortgage Corporation (FHLMC). The aggregate investment in such securities shall not exceed 70% <br />of the City’s total portfolio and the securities of any one Federal Instrumentality shall not exceed <br />35% of the City’s total portfolio. <br /> <br />C. LOCAL AGENCY INVESTMENT FUND (LAIF) – Maximum $65M per account (current State rules) <br />The City may invest in the LAIF established by the State Treasurer for the benefit of local agencies <br />up to the maximum permitted under its rules. The aggregate investment in such securities shall <br />not exceed $65 million per account. <br /> <br />D. SAN MATEO COUNTY POOL – Maximum $50M <br />6.1.I. - Page 18