Laserfiche WebLink
C - 29 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 <br />APPENDIX CInvestment Policy & Guidelines <br />(Adopted by City Council June 21, 2022) <br />POLICY <br />It is the policy of the City of Pleasanton (the “City”) to invest public funds in a manner which will provide the <br />highest investment return with the maximum security while meeting the daily cash flow demands of the City <br />and conforming to all state and local statutes governing the investment of public funds. <br />SCOPE <br />This investment policy applies to all financial assets of the City. These funds are accounted for in the City’s <br />Comprehensive Annual Financial Report and include: <br /> General Fund <br /> Enterprise Funds <br /> Internal Service Funds <br /> Capital Projects Funds <br /> Special Revenue Funds <br /> Private-Purpose Trust Funds <br /> Agency Funds <br /> Debt Service Funds <br />PRUDENCE <br />Investments shall be made with judgment and care – under circumstances then prevailing – in which <br />persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for <br />speculation, but for investment, considering the probable safety of their capital as well as the probable <br />income to be derived (i.e. the “prudent person” standard as defined by Civil Code #2261). <br />Investment officers acting in accordance with written procedures and the investment policy and exercising <br />due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price <br />changes, provided deviations from expectations are reported in a timely fashion and appropriate action is <br />taken to control adverse developments. <br />OBJECTIVE <br />The primary objectives, in priority order, of the City’s investment action shall be: <br />a. Safety: Safety of principal is the foremost objective of the investment program. Investments of the <br />City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall <br />portfolio. To attain this objective, diversification is required in order that potential losses on individual <br />securities do not exceed the income generated from the remainder of the portfolio. <br />b. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all <br />operating requirements which might be reasonably anticipated. <br />c. Yield: The City’s investment portfolio shall be designed with the objective of attaining a market rate <br />of return throughout budgetary and economic cycles, taking into account the City’s investment risk <br />constraints and the cash flow characteristics of the portfolio. <br />CONCENTRATION OF RISK <br />Government Accounting Standards Board (GASB) statement No. 40 recognizes that there are many factors <br />that can affect the value of investments. Investment risk factors include credit risk, custodial credit risk, <br />concentration of credit risk, interest rate risk, and foreign currency risk.