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C - 31 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 <br />APPENDIX C <br /> <br />AUTHORIZED AND SUITABLE INVESTMENTS <br />The City’s investment portfolio may include the following instruments: <br />a. Time Deposits <br /> Fully-insured (FDIC) or fully collateralized non-negotiable certificates of deposits (CD’s) in financial <br />institutions located in California. All time deposits must be collateralized in accordance with California <br />Government Code sections 53650 et. seq. The City, at its discretion, may waive the collateralization <br />requirements for any portion of the deposit that is covered by federal insurance. A maximum of 30% <br />of the City’s portfolio may be invested in this category. <br />b. Negotiable Certificates of Deposit (NCDs) <br />Negotiable C/D’s issued by the top 25 banks or top 15 regional banks. The aggregate investment in <br />Negotiable C/D’s shall not exceed 30% of the City’s total portfolio. The City shall also be able to invest <br />in the C/D’s of any local or regional bank that do not meet the above criteria, however the maximum <br />allowable limit of such investment will be restricted to the FDIC insured amount of $250,000/- per <br />bank. <br />c. Banker’s Acceptances <br />Banker’s Acceptances not to exceed 180 days maturity from date of purchase. No more than 5% <br />of the City’s total portfolio shall be invested in banker’s acceptances of any one issuer and the <br />aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio. <br />d. Securities of the U.S. Government <br />U.S. Treasury bills, notes, bonds or certificates of indebtedness, or those for which the faith and credit <br />of the United States are pledged for the payment of principal and interest. There is no limitation as to <br />the percentage of the City’s portfolio that may be invested in this category. <br />e. Securities of U.S. Government Agencies <br />Federal agency or United States government-sponsored enterprise obligations, participations, <br />or other instruments, including those issued by or fully guaranteed as to principal and interest by <br />federal agencies or United States government-sponsored enterprises. There is no limitation as to the <br />percentage of the City’s portfolio that may be invested in this category. <br />f. Commercial Paper <br />A1/P1/F1 Commercial Paper not to exceed 270 days maturity from date of purchase. No more than 5% <br />of the City’s total portfolio shall be invested in commercial paper of any one issuer and the aggregate <br />investment in commercial paper shall not exceed 25% of the City’s total portfolio. <br />g. State of California Local Agency Investment Fund (LAIF) <br />The Local Agency Investment Fund was established by the State to enable local agency treasurers to <br />place funds in a pool for investment (California Government Code Section 16429.1 et seq.). The City <br />uses this investment vehicle for short-term liquidity, funds are available on demand and interest is <br />paid quarterly. The City may invest up to the maximum permitted by LAIF. <br />h. California State and Local Agency Obligations <br />Obligations of the State of California or any local agency within the state that are general obligation <br />bonds or essential service bonds secured with revenue from a water, sewer, power or electric system, <br />provided that such obligations are rated A or better. No more than 5% of the City’s total portfolio shall <br />be invested in any one issuer in this category and the aggregate investment in categories (h. & i.) <br />shall not exceed 30% of the City’s total portfolio.