HomeMy WebLinkAbout098-2017RESOLUTION NO. 98-2017
APPROVING CHANGES TO THE TOWN OF MANVILLE INVESTMENT POLICY
WHEREAS, the primary objective of the Investment Policy of the Town of Danville is
safety and security of town funds; and
WHEREAS, investments can only be made in legal securities as described by the
Investment Policy and invested in a manner that assures adequate liquidity to meet
forecasted disbursement requirements; and
WHEREAS, maximizing interest earned is a secondary objective once safety, liquidity
and legality have been assured; and
WHEREAS, the Investment Policy continues to meet all known regulations and serve the
best interest of the Town; and
WHEREAS, Section 17 of the Investment Policy requires that the Policy shall be reviewed
and re -approved annually by the Town Council; and
WHEREAS, the Town of Danville Investment Policy has been reviewed by the Town's
Treasurer and independent investment advisor who have recommended the following
changes:
1) Section 11 - Added language specifying that all limitations are applicable at the
time of purchase.
2) Section 11 c and d - Added language to the definition of Municipal Securities to be
more in line with Government Code Sections 53601(a,c,e). Specifically, municipal
securities from states other than California are permitted but they must be General
Obligations of the state or backed by a State revenue source, with a minimum
rating of "A" or better.
3) Ratings Category - Added language where long-term ratings minimums are
specified to include the ratings category. They must be in the "A" or "AA" category
or better, to be consistent with a clarification to CGC that became effective January
1, 2017.
4) Section 11 m - Added language to clarify that the Town may purchase Mutual
Funds up to 10% per issuer and Money Market Mutual Funds up to 20% per
issuer with a combined overall exposure limit of 20% in accordance with
Government Code Section 53601(1).
5) Section 14 - Diversification Requirement - Added language limiting exposure to
any individual issuer, except inhere otherwise specified in the policy, to ensure no
internal conflicts within the investment policy.
6) Glossary - Added "Municipal Securities", "Nationally Recognized Statistical
Rating Organization (NRSRO)" and "Mutual Funds" to the glossary section of the
investment policy.
WHEREAS, the Danville Town Council has duly reviewed and considered these changes
and finds them to be consistent with the intent of the Investment Policy; now therefore
be it
RESOLVED, by the Danville Town Council, that these changes be made to the
Investment Policy and that all investment control and reporting procedures outlined in
the Town of Danville Investment Policy continue to be applied and implemented by the
Town Treasurer.
APPROVED by the Danville Town Council at a regular meeting on December 19, 2017,
by the following vote:
AYES: Arnerich,
NOES: None
ABSTAINED: None
ABSENT: None
Blackwell, Morgan, Stepper, Storer
APPROVED AS TO FORM:
CITY ATTORNEY
ATTEST:
CITY CLE9K