Reso 1050-02/1998RESOLUTION NO. 1050
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT
APPROVING STATEMENT OF INVESTMENT POLICY
FOR CALENDAR YEAR 1998
WHEREAS, the Board of Directors, pursuant to Government Code Section 53646, shall
annually approve a Statement of Investment Policy; and
WHEREAS, the annual Statement of Investment Policy of the Vallecitos Water District
is as follows:
Vallecitos Water District (DISTRICT) funds not required for immediate expenditure
will be invested in compliance with the provisions of Government Code Sections 53600-53683.
Criteria for selecting investments and the absolute order of priority are safety, liquidity, and yield.
Investments will be made in a range of instruments and maturity dates to insure diversification and
liquidity of assets in an emergency or when a large cash outlay is necessary.
The instruments of investment to be used are Certificates of Deposit, Local Agency
Investment Fund, Treasury Bills and Notes, U. S. Governmental Agency Obligations, Repurchase
Agreements, and Savings Accounts. Deposits will be fully collateralized as required by Government
Code Section 53652 or insured by the Federal Deposit Insurance Corporation or the Federal Savings
and Loan Insurance Corporation, and the "Contract for Deposit of Monies" will indicate the type and
amount of collateral.
Not more than 30% of District funds will be invested in any one single banking
institution and not more than 25% aggregate total will be invested with savings and loans. Not more
than 20% of District funds will be invested in Governmental Agency Obligations. Exempt from
these percentages are funds advanced or in trustee accounts for project construction.
All Certificates of Deposit shall mature not later than one (1) year from the date of
investment and Governmental Instruments shall mature not later than three (3) years from the date
of investment.
No investment will be made pursuant to the provisions of Governmental Code Section
53601.1 in financial futures or financial option contracts without the prior approval of the Board of
Directors. Only a Primary Government Securities Dealer shall be used for the purchase of Agency
Obligations.
Adhering to the provisions of this Statement of Investment Policy, the Controller shall
coordinate the investment of surplus funds with guidance from the Treasurer.
A list of investments will be submitted to the Board each month, indicating type,
purchase and maturity dates, rate, amount, fund, and percentages.
Resolution No. 1050
Page Two
The Finance/Investment Committee of the Board of Directors shall meet on a quarterly basis
with Staff personnel to review District investments and to appraise market conditions
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Vallecitos
Water District as follows:
SECTION 1: The Annual Statement of Investment Policy for calendar year 1998 is
hereby approved and the District Treasurer is directed to follow this Statement of Investment Policy
in investing funds of the District.
PASSED, APPROVED, AND ADOPTED at a regular meeting held on this 4th day of
February, 1998, by the following roll call vote:
AYES: Cruz, Davy, Ferguson, Hannan, Mason
NOES:
ABSTAIN:
ABSENT:
(7A.bi ,,,,
Paul A. Davy, Ppsident
Board of Directors
Vallecitos Water District
ATTEST:
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William W. Rucker, Secretary
Board of Directors
Vallecitos Water District