AgdaPkt 2011-06-27 - Laserfiche WebLink

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Investment Policy May 2011 Page 2 of 6 6.1.D. - Page 4 mature to meet the cash requirements for ongoing operations, thereby avoiding the need to sell securities prior to maturity. Liquidity: The Treasurer shall keep the portfolio sufficiently liquid to meet the operating and capital needs of the City which can be reasonably anticipated from his /her experience of the City operations and adopted budget. He /she shall also review the various construction and other contracts the City has entered into to anticipate cash needs. Return on Investment: Within the safety and liquidity constraints, investment portfolio shall be designed to attain the market rate of return. IV. AUTHORITY AND DELEGATION The authority to invest City funds is assigned to the City Treasurer (Director of Finance) pursuant to section 34 of the Charter of Redwood City and section 2.33.1 of the Redwood City code of ordinances. The Treasurer will be assisted in the management of City funds by a Deputy Treasurer (designated by the Treasurer). The Deputy Treasurer will be a Finance Department employee whose primary treasury responsibilities will be supporting the day -to -day treasury management activities of the City. V. CASH FLOW AND AVAILABILITY An average amount of six months cash flow is to be maintained in immediately available investments, such as the State Treasurer's Local Agency Investment Fund or a similar liquid instrument. This may include commercial paper. Weekly analysis of cash flow will serve as a basis for determining the maturity date of investments. The Treasurer and Deputy Treasurer shall certify each month that enough liquid resources (including maturities) are available to meet the next six months cash flow requirements. VI. ACCEPTABLE INVESTMENT INSTRUMENTS Unless expressly approved in advance by the City Council all investments must be made in accordance with this policy and State of California Government Code Sections 53600 et.seq. The Council may, as part of a bond issuance, direct or authorize staff to invest bond reserve funds in investment instruments authorized by the California Government Code that are not contained within this policy. The City investment portfolio may include the following instruments: Certificates of Deposit purchased from banks Bankers Acceptances Treasury Bills, Notes, and Bonds Government Agency Securities (e.g. Federal National Mortgage Association, Government National Mortgage Association, Federal Farm Credits, and Federal Home Loan Bank Board)