Reso 0858-07/1989 RESOLUTION NO. 858
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT
APPROVING STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 1989-90
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 District Auditor will use those investments permitted under
the Government Code of the State of California. All investments shall
mature not later than 365 days from the date of investment.
The instruments of investment to be used are Certificates of
Deposit, Local Agency Investment Fund, San Diego County Investment Pool,
Treasury Bills, 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 10% of District funds will
be invested in Governmental Agency Obligations. Exempt from these
percentages are funds advanced or in trustee accounts for project
construction.
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.
Adhering to the provisions of this investment policy, the
Auditor is delegated the authority to invest, with the guidance of the
General Manager and Controller. Only a Primary Government Securities
Dealer will be used for Agency Obligations. No deviation will be made from
this policy without prior Board approval.
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. 858
Page 2
NOW, THEREFORE, the Board of Directors of the Vallecitos Water
District does find, determine and resolve as follows:
Section 1: The Annual Statement of Investment Policy for
fiscal year 1989-90 is hereby approved and the District Auditor is directed
to follow this Investment Policy in investing funds of the District.
PASSED, APPROVED AND ADOPTED this 17th day of July, 1989, by the
following roll call vote:
AYES: Directors: Ferguson, Mahr, Mason
NOES: Directors:
ABSTAIN: Directors:
ABSENT: Directors: Burton, Newport
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Board of Directors
Vallecitos Water District
ATTEST:
William W. Rucker, Secretary
Board of Directors
Vallecitos Water District