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Home My WebLink AboutReso 91-230 - Expanding its investment policy to deal with bonded debt issue proceeds as defined by Trust Agreements RESOLUTION NO. 91- .2'30 �. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING EXPANDING ITS INVESTMENT POLICY TO DEAL WITH BONDED DEBT ISSUE PROCEEDS AS DEFINED BY TRUST AGREEMENTS. WHEREAS, on April 2, 1991, by Resolution No. 91-148, the City Council of the City of Redding adopted an Investment Policy to provide guidelines for the prudent investment of the City' s idle funds; and WHEREAS, City Council wishes to expand the City' s Investment Policy to include a policy dealing with debt proceeds and how they will be invested in permitted investments as defined in the trust agreements associated with the individual debt issues, as set forth in Exhibit A attached hereto and incorporated herein by reference; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Redding that the City' s Investment Policy numbered 408 be expanded to include the attached Policy dealing with debt proceeds. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 18th day of June, 1991, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Fulton, Moss & Dahl NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Arness & Buffum ABSTAIN: COUNCIL MEMBERS: None jx'--t, MIKE DAHL, Mayor City of Redding ATTEST: FORMROVE : ETHEL A. NICHOLS, City Clerk forRANDALL HAYS, City Att ey er 0 Si C i INVESTMENT POLICY DEBT PROCEEDS Notwithstanding any other provisions to the contrary, debt issue proceeds shall be invested in "permitted investments" as defined by the trust agreement associated with the debt issue. Such investment shall be in compliance with requirements imposed by rating agencies, bond insurers, and Federal and State law. Investments allowable under current California Goverment Code §53601 are stated in the City Council Investment Policy. Included in the investment policy is the criteria to be utilized for selection of investments and the order of priority. For purposes of this policy, the term "Treasurer" is that individual defined in the bond documents and amendments of the debt issue. The Treasurer is subject to the applicable provisions of any indenture, trust agreement, or resolution providing for a trustee or other fiscal i agent. This individual is designated as the depositary of the 4 issuing authority to have custody of all the money of the issuing authority from whatever source and, as such, shall have the powers, duties, and responsibilities specified in §6505. 5 of the Government Code. The Treasurer is designated as the public officer or person who has charge of, handles, or has access to any property of the authority and such officer shall file an official bond in the amount of $25,000 as required by §6505. 1 of the Government Code, provided that such bond shall not be required if the issuing authority does not possess or own property or funds with an aggregate value of greater than $500. Due Diligence: It shall be the responsibility of the Treasurer to structure and monitor the bond proceeds investment process and to verify that fees paid to brokers are reasonable and commensurate with the work performed. The Treasurer shall consult with bond counsel and financial advisors during the development of the bond issue documents and shall be responsible for determining whether the proceeds shall be actively or passively invested as a result of Federal regulations that may govern the issue. Conflicts of Interest: Underwriters and financial advisors may not receive compensation or finder' s fees from parties involved in investment transactions. Subject to any restrictions imposed by Federal regulations, the bond underwriter or advisor may bid for investment funds in an openly competitive bidding, but not as a sole source broker or intermediary. If a financial advisor or underwriter also acts in an investment capacity, the firm shall certify that its fees do not exceed the fees it customarily charges for investment activity and include no compensation for services provided in the underwriting. Exhibit A I Avoidance of Abuses: The City will refrain from abusive practices in the investment of bond proceeds and will obtain market price instruments. For bond issues to which Federal yield or regulatory restrictions apply, the primary objective shall be to prudently obtain satisfactory market yields and to minimize the costs associated with investment of such funds. The Treasurer shall obtain full disclosure of brokerage and other fees associated with investment of bond proceeds and shall require written disclosure of any payments made by investment firms or brokers to third parties associated with the City or the issuance of its bonds. Arbitrage Record Keeping: I The Treasurer shall establish systems and procedures to comply with Federal regulations governing the investment of bond proceeds, including investment record keeping systems. The record keeping system shall be reviewed annually by the independent auditor for procedural compliance and adequacy in tracking arbitrage or penalties. I Exhibit A RESOLUTION NO. 9/_131 A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 55TH AMENDMENT TO THE CITY BUDGET RESOLUTION NO. 90-362 APPROPRIATING $269,000 FOR UNBUDGETED COST-OF-LIVING ADJUSTMENTS FOR FISCAL YEAR 1990-91. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING: THAT the Annual Budget Resolution No. 90-362 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 111 401 CITY COUNCIL AND MAYOR $ 6,000 111 411 CITY MANAGER 2,000 Ill 421 CITY TREASURER. 1,500 111 429 PERSONNEL 3,500 111 443 POLICE INVESTIGATIONS 10,000 11.1 447 TRAFFIC SAFETY UNIT 33,000 1.11 455 ANIMAL REGUI.ATION 2,000 111 462 FIRE SUPPRESSION 150,000 111 463 FIRE PREVENTION 5,000 111 511 STREETS ADMIN AND GENERAL 10,000 111 610 PARKS 20,000 111 650 MID--TOWN MALL 22,000 Sub-total. General Fund 245,000 122 741 PARKING OPERATIONS 2,000 122 742 PARKING ENFORCEMENT 2,000 Sub--total Parking Fund 4,000 150 887 GENERAL SERVICES ADMINISTRATION 10,000 150 890 WAREHOUSE 2,000 Sub-total General Services Fund 12,000 1.58 894 RECORDS MANAGEMENT 6,000 Sub-total Records Management Fund 6,000 166 899 COMMUNICATIONS 2,000 Sub-total Communications Fund 2,000 TOTAL INCREASE269,000 U THAT account titles and numbers requiring adjustment by this Resolution are as follows: SOURCE USE OF FUNDS OF FUNDS Decrease Fund Balance: General Fund A/C No. 111-000-00-0000 Unappropriated Fund Balance $(245,000) Parking Fund A/C No. 122-000-00-0000 Unappropriated Fund Balance (4,000) General Services Administration Fund A/C No. 150-000-00-0000 Unappropriated Fund Balance (12,000) Records Management Fund A/C No. 158-000-00-0000 Unappropriated Fund Balance (6,000) Communications Fund A/C No. 166-899-00-0000 Unappropriated Fund Balance (2,000) Increase Appropriations: City Council and Mayor A/C No. 111-401-00-0111 Full-time Salaries 6,000 City Manager A/C No. 111-411-00-0111 Full-time Salaries 2,000 City Treasurer A/C No. 11.1-421-00-0111 Full-time Salaries 1,500 Personnel A/C No. 111-429-00-0111 Full-time Salaries 3,500 Police Investigations A/C No. 111-443-00--0111 Full-time Salaries 10,000 Traffic Safety Unit A/C No. 111-447-00-0111 Full-time Salaries 33,000 Animal Regulation A/C No. 111-455-00-0111 Full-time Salaries 2,000 Fire Suppression A/C No. 111-462-00-0111 Full-time. Salaries 150,000 Fire Prevention. A/C No. 111-463-00-0111 Full-time Salaries 5,000 Streets Administration & General A/C No. 111-501-00-0111 Full-time Salaries 10,000 SOURCE USE OF FUNDS OF FUNDS Parks A/C No. 111-610-00-0111 Full-time Salaries 20,000 Mid-town Mall A/C No. 111-650-00-0111 Full-time Salaries 22,000 Parking Operations A/C No. 122-741-00-0111 Full-time Salaries 2,000 Parking Enforcement A/C No. 122-742-00-0111 Full-time Salaries 2,000 General Services Administration ` A/C No. 150-887-00-.0111 Full-time Salaries 10,000 I Warehouse A/C No. 1.50-890-00-0111 Full-time Salaries 2,000 I Records Management- A/C No. 158-894-00-0111 Full-time Salaries 6,000 Communications A/C No. 166-899-00-0111 Full-time Salaries $ 0- $ -0- THAT the purpose is to appropriate 269 000 for unbud eted cost-of-living P P $ g g adjustments in Fiscal Year 1990-91. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the l8th day of June 19 91 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Fulton, Moss & Dahl NOES: COUNCIL. MEMBERS: None ABSENT: COUNCIL MEMBERS: Arness ABSTAIN: COUNCIL MEMBERS: ' None MIKE DAHL,. Mayor ATTEST: FORM APPROVAL: ; f ETHEL A. NICHOLS, City Clerk for 16kDALV HAYS, City Attorney