02-04-2003 - 2003 Investment PolicyCity of West Covina
Memorandum
AGENDA
ITEM NO. B-6a
DATE 2/4/03
TO: Andrew Pasmant, City Manager
and City Council
FROM: Tom Bachman, Director
Finance Department
SUBJECT: 2003 INVESTMENT POLICY
RECOMMENDATION:
Staff recommends that the City Council adopt the City's Investment Policy and accompanying
Investment Portfolio Guidelines.
DISCUSSION:
Section 53646 of the Government Code requires the City's chief fiscal officer to submit a
statement of investment policy to the City Council annually. West Covina's Investment Policy
and accompanying Investment Portfolio Guidelines cover all financial assets of the City of West
Covina, Redevelopment Agency and West Covina Public Financing Authority. This Policy does
not apply where superseded by specific bond issue documents, which are more restrictive, or to
the West Covina Deferred Compensation Plan (established under the Internal Revenue Code
457). The City's deferred compensation plan provides for self -direction of investments by
individual employees and retirees.
The objectives of the City's Investment Policy, in priority order, are to safeguard principal, maintain
cash liquidity sufficient to meet cash flow requirements and maximize yield consistent with the first
two objectives. The accompanying Investment Policy provides guidelines of allowable investments
for the City, their maximum maturity, the applicable quality ratings, and State mandated reporting
requirements. The Policy also includes internal investing procedures and other information to assist
readers in understanding the Policy. ;
The City Council adopted the 2002 investment policy on February 19, 2002. According to the
League of California Cities, there were no statutory changes in the California State Government
Code related to the types of allowable investments, investment policy and portfolio reporting
requirements over.the past year. No changes were made to this year's policy.
FISCAL IMPACT:
There is no fiscal impact.
Prepared by: Dennis Swink
City Controller
Finance Docs/Xiiles/Invest Policy
Reviewed/Approved by: Thomas Bachman
Finance Director