RESOLUTION NO 25 2004

RESOLUTION OF THE

INDIO WATER

AUTHORITY

OF THE

CITY OF

INDIO

CALIFORNIA
INVESTMENT

TRANSFERRING FUNDS UNAPPROPRIATED AS OF JUNE 30 2004

TO THE APPROPRIATE CONTINGENCY RESERVE

ACCOUNT
FISCAL

E2MING THE AFFI LIMIT AND

POLICY

ADOPTING OF

THE

APPROPRIATIONS FOR

AUTHORIZING BUDGET

EXECUTION

EXPENSES

YEAR

2005 2004

BE IT RESOLVED BY THE INDIO WATER

AUTHORITY

OF THE CITY OF

INDIO CALIFORNIA
Section 1 The has

AS FOLLOWS

Contingency
established

Reserves
account for each discrete fund of the account is

City

previously

City

The continued existence of such

contingency contingency

reserve reserve

hereby

affirmed

All monies shall be

previously and currently appropriated to the various contingency reserve accounts expended during future fiscal years First to avoid borrowing pending receipt of tax

revenues and then for unusual and necessary expenses chargeable to current fiscal year Provided monies appropriated to a contingency reserve account shall not be expended as aforesaid to the
extent that the
reserves

appropriations

to

contingency

reserve

account

are

being

accumulated to

provide
other

emergencies or other unforeseen contingencies specific capital projects property acquisitions as approved by the City Manager
for Section 2 That certain document of Indio controls

or

Budget
now on

Controls

file in the office of the

are

Proposed Budget hereby placed on the use expenditure

Fiscal Year 2004 2005 is

City Clerk of the City of Indio entitled City hereby adopted That the following
appropriations
an

and transfer of budget

A No

of funds shall be made unless there is the

unencumbered

appropriation

available to

cover

expenditure

in

keeping

with General Financial

Policy

001 33

adopted during
B The

FY 2000

City Manager may authorize expenditures of funds in amounts up expenditure of funds in excess of 25 000 requires City Council action

to

000 Any 25

C The

000 Any City Manager may authorize Public Works contracts in amounts up to 25 of Public Works funds in excess of Council expenditure 000 requires City 25 action except that the City Manager may approve change orders on Public Works contracts approved by the Council in amounts up to project contingency as established by Council City Manager may authorize transfer authorized City Departments and City Funds
the of funds of up to

D That

000 25

between

That
to

Department heads upon approval of the City Manager may authorize expenditures and including X1 000 in approved and assigned Department level funds Department
of the

up

heads upon approval of the City Manager may prepare a transfer of funds within categories in assigned Department level budgets to meet the goals and That

objectives

department

G Travel Reimbursement Rate The latest Internal Revenue

mileage
1
C

reimbursement rate shall be that allowed

as

Service

Publication

publicized

This

section

by the adjusts

Administrative

Policy

26 Section 93

FI

personnel positions Position Allocations as indicated in the 2004 plan approved for FY 2003 Upon job duty changes and review by Human and recommendation by Directors the Resources City Manager may adjust
The schedule of authorized Classifications

Section 3

Investment

Policy adopted by
reaffirmed the

The investment 1997 and the

policy
same

heretofore is

hereby

City and the Redevelopment Agency on June 4 and readopted as amended for the fiscal year

commencing July 1
Section 4 The

2003 See Exhibit A attached

Proceeds of Taxes

Appropriations Limit
either the

appropriations limit for proceeds of taxes is calculated by using s population growth The use of the City County s growth for fscal
hereby adopted
The

s City

or

the

2004 limit is year 2003

appropriations
or

limit is also calculated

by using

either the

change

income

the increase in local nonresidential assessed valuation due to has been unable to

in California per capita new construction The the

use

s computer system County

provide

the latter

Therefore

of the

California per capita income factor is hereby adopted reserving the right to recalculate and amend the appropriations line once the County can provide the alternative data used ZOOS

factors is hereby adopted at

on

the above

the

appropriations

limit for

proceeds

of taxes for fiscal year 2004

F2004 2005

00 562 226 57

Departments
2003

are

hereby

authorized to execute expense for the fiscal year

commencing July 1

PASSED
vote

APPROVED AND ADOPTED this 22nd

day

of June 2004

by the following

AYES

Bastidas Fesmire Godfrey Barba Hunt Friestad Bethel

Gilbert

Wilson

NOES None ABSENT

JACQUELINE BETHEL PRESIDENT

ATTEST

C1 HERNANDEZ THIA
Ya1 iM T T

a aLC 1AtiY Kr

If

ru

IT Ae II EX

TTY OF IIO

Redevelopment Agency

Public

Financing Authority

Other Entities

INVESTMENT POLICY 1 Policy It is the of the of Indio to invest

policy

City

highest
the the

investment return vvith the

public funds in a manner which will provide the maximum security While meeting the daily cash flow

demands of the

entity and conforming to all State of California and local statutes governing investment of public funds The City of Indio will operate its investment practices under Prudent Person Rule California Government Code Section 53600 3 states investing reinvesting purchasing acquiring exchanging selling and managing public funds a trustee shall act with care skill and prudence and diligence under the circumstances then prevailing that aprudent person acting in se matters a vould use in the c like capacity and farrriliarity with th nduct offunds a like character and with like aims t f safeguard the principal and maintain the needs flee liquidity f agency
s9

When

Scope
This investment the Indio Indio

policy applies to

all investments of the

Redevelopment Agency

and s it component units and other discrete entities under the control of the City of

City of Indio

policy however specif cally excludes the employees retirement and deferred compensation funds Additionally money held by a trustee or fiscal agent pledged to the payment or security of bonds or other indebtedness shall comply with CGC Section 53601 I
his 3

Objective
The

primary objectives
iu ei Safety
the

in

priority order

of the

City

of Indio investment activities shall be

of principal is the foremost

objective

City

of Indio shall be undertaken in

a manner

of the investment program Investments of that seeks to ensure the preservation

of capital in the overall

portfolio

To attain this

objective

diversification is

important

in order that any potential losses on individual securities do not exceed the income generated from the remainder of the portfolio

Liquidity
The

City

of Indio investment

portfolio

will remain
which

of Indio to meet all

operating requirements

sufficiently liquid to enable the City might be reasonably anticipated

e Return

on

Investments shall be

The
a

City

of Indio investment

portfolio

designed with
cycles

the

objective

of attaining

rate of return

throughout budgetary

and economic

commensurate with the

City

of Indio investment risk constraints and the cash flow characteristics of the

portfolios
4 Investment Instruments

Funds of the

City Agency
so

and

Financing Authority

allowable under current 53600 et policies

a

legislation
as

may be invested in any instrument of the State of California Government Code Section

seq

long

the investment is

appropriate

when investment

objectives

and

are

taken into consideration

Allowable investment Instruments may include

Treasury bligations Bills Notes and Bonds Government Agency Securities Local Agency Investment Fund California State Pool Certificates of Deposit Commercial Paper Repurchase Agreement Money Market Funds bond reserves held by trustee only s Acceptances Banker
Interest

Bearing Checking

Accounts Accounts

General Demand

Checking

Prohibited Investments

A local agency shall not invest any funds pursuant to this article in inverse floaters range notes or interest only strips that are derived from a pool of mortgages A local agency shall not invest any funds pursuant to this article in any security that could result in zero interest accrual if held to maturity However a local agency may hold 5

prohibited

instruments until their

maturity

dates

Investment Diversification will

Investment

practices

diversify

the

use

of investment instruments to avoid in

incurring

unreasonable risks inherent in

over

investing

specific instruments

individual financial

institutions any
one

or

maturities o that
or

entity

any

one

o of the portfolio end not more than 2S with the instrument following exceptions

shall be invested in

Treasury Obligations Local Agency Investment Fund California

6 Investment Limitations Investment instruments and California Government

State Pool

holdings Code Section

will be limited to the statutory limits 53601 f g as follows

imposed by

the

Commercial Paper
Bankers

1S General 40

Policy

under A L may be up to 28 F I

Acceptances

Iatltrlty Llmltatlons 1
must have

Every
five

investment instrument

purchased

term

remaining

to

maturity
or and

of less than

S years The one interest accounts held by

exception
a

to this limitation will be bond

reserves

capitalized

third party trustee

Delegation of Authority

Authority

to manage the

Government

Code the

delegated by City investment policy o person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Committee The Finance Director shall be responsible for all transactions undertaken and shall establish a
system of controls
9
to

of Indio investment program is derived from the California Management responsibility for the investment program is hereby Council to the Finance Director wha shall operate consistent with this

City

regulate

the activities of subordinate officials

Investment Committee

The investment committee is

appointed by the City Council to serve in an advisory capacity composed of two members of the City Council City Treasurer one citizen at large the Finance Director and the City Attorney will be an ex officio member The investment committee is responsible for reviewing the city s investment policy and recommending annual adoption of the policy by the City Council Individual investment trades and purchases shall be done by the Finance Director within the approved
The investment committee will be The Finance Director will report all investment trades and transaction to the Investment Committee at least quarterly

policy

and

guidelines

10 Ethics and Conflicts of Interest Officers and

activity

employees involved in the investment process shall refrain from personal business that could conflict with proper execution of the investment program or which could

impair

their

ability

to make

impartial

investment decisions

Employees

and investment

officials shall disclose to the Investment Committee any material financial interest in financial institutions that conduct business within this jurisdiction and they shall further disclose any

large personal
City
of Indio

investment financial

particularly

with

positions that could be related to the performance regard to the time of purchases and sales

of the

11 Authorized Financial Dealers and Institutions The Finance Director services will maintain In list of financial list will also who institutions authorized to of authorized to

a a

investment

dealers selected broker

addition by credit worthiness

be maintained
are

provide approved security

investment

provide

services in the State of California that No

qualify under Securities public deposit shall be

These may include primary dealers or regional dealers 1 uniform net capital rule Exchange Commission Rule 1503
a

made except in

qualified public depository

as

established

by

California laws

All financial institutions

and broker dealers who desire to become

investment transactinns must financial statements

pply the c

Finance T irectnr With the

qualified bidders for ditPd ing e x fnlln g a

resolution
certification

Security Dealers certification trading dealer proof of California registration completed broker questionnaire of having read the City of Indio investment policy and depository contracts proof
of the financial condition and

of National Association of

An annual review conducted

registrations

of

qualified

bidders will be

by the

Finance Director

A current audited financial statement is dealer in which the broker

required

to be

on

file for each financial institution and

City

of Indio invests

12 Collateralization Collateralization will be

required

on

two

types of investments certificates of deposit and

repurchase agreements anticipate market changes and provide a level of security for all funds the Collateralization level will be 102 of market value of principal and accrued interest The City of Indio chooses to limit what is considered collateral to the following IJ S Treasury Securities LT S Agency Securities
13

In order to

Safekeeping
All

and

Custody
collateral for

security transactions including

of Indio shall be conducted
on

repurchase agreements

entered into

by

the

City
held

payment DVP versus adelivery

designated by

basis

Securities will be
evidenced

by

third party

custodian

the Finance Director and

by

safekeeping receipts

14 Performance Standards The investment

portfolio shall be designed with throughout budgetary and economic cycles

constraints and the cash flow needs

the

objective

of

obtaining
the

rate of return

commensurate

with

investment

risk

Ao Market Meld

enchmark I

The

City

used by

Given this strategy the basis of Indio investment strategy is passive the Finance Director to determine whether market yields are being

achieved shall be the sip month J S

Treasury

15

laeporting
The Finance Director is investment

charged

with the

responsibility
Council

of

submitting

quarterly report
or

on

activity City quarterly reports of investment activity if any investments the previous quarter
16 Investment The

and returns to the

The Investment Committee will receive have been

purchased

sold

during

Policy Adoption

City

of Indio investment

policy

shall be

legislative authority and the annually by the Investment Committee and any modifications made approved by the Investment Committee and the City Council and Agency

City

of Indio s

adopted by resolution of the City Council of the Indio Redevelopment Agency The policy shall be
thereto must be

reviewed

17 Internal Controls

The investment function will be

organized so that specific responsibility far the performance of duties is assigned with a clear line of authority and reporting The functions of authorizing s executing and recording transactions custody of investments and performing reconciliation are handled by separate persons to reduce the risk that a person is in a position to conceal errors or fraud in the normal course of duty
While the
no

City

internal control system however elaborate can guarantee absolute assurance that and Redevelopment Agency s assets are safeguarded it is the intent of internal

controls to of this

that management of investments meet the objectives policy following segregation of responsibilities will form the basic system of internal controls far investments

provide

reasonable

assurance

The

The table attached shows the different levels of approval and

oversight responsibility

FUNCTIOl

NSLBILITY RESP Finance Director Investment Committee Investment Committee

Develop

formal Investment Polic

Recommend modifications to Investment Polic Review Investment hoard Ado t Investment Polic Select Investments

Policy

and recommend to

City Council Agency

Cit

Council

Finance Director Fiscal Officer

Approve

Transactions

Cit Mana

er

or

Desi

need

Execute investment transactions Section under review Committee Investment Verification investment

by

Investment

Finance Director Fiscal Officer

match broker confirmation accounting

to

City

Fiscal Officer Account Clerk

records
records

AR
Fiscal Officer Account Clerk

Record investment transactions into

AR
Reconcile investment records to
statements

accounting

records and bank

Fiscal Officer Account Clerk AR Time CD s

or

Security

maintained in the the

care

receipt will be City vault in

of the Finance All other securities

Director

will be held third party

safekeepin
Review of ortfolio to determine conformance to Investment Polic Inde endent Auditors