Reso 1004-12/1995 RESOLUTION NO. 1004
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT
APPROVING STATEMENT OF INVESTMENT POLICY
FOR CALENDAR YEAR 1996
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. District shall continue participation in the phased withdrawal program with
current investments in the San Diego County Investment Pool. No new funds shall be
invested with that pool.
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.
Resolution No. 1004
Page Two
Adhering to the provisions of this Statement of Investment Policy, the Controller
shall coordinate the investment of surplus funds with guidance and approval 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.
The Finance/Investment Committee of the Board of Directors shall meet no less than
on a quarterly basis with Staff to review District investments, to appraise market conditions,
and report to the Board.
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
1996 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 20th
day of December, 1995, by the following roll call vote:
AYES: CRUZ, DAVY, FERGUSON, NASON
NOES:
ABSTAIN:
ABSENT: GREGORYK
ATTEST:
William W. Rucker, Secretary
Board of Directors
Vallecitos Water District