FINANCIAL POLICIES
Bond Proceeds Portfolio/Special District Funds Portfolio: The Bond Proceeds and Special District Funds Portfolios held by the City, fiscal agents or trustees will be structured with maturities sufficient to meet current and future disbursements and other liabilities consistent with the purpose of each bond issue. The Treasurer may match maturities to defined future liabilities or may structure the portfolio in such a manner as to maintain an average maturity and a defined liquidity percentage necessary to meet estimated liabilities. In no event will securities be purchased with final maturities that exceed a specifically defined future liquidity requirement (such as bond reserve fund availability requirement) or liability. Investment Pools/Money Market Mutual Funds Shares of beneficial interest issued by diversified management companies that are money market mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S. Sec. 80a-1 et seq.), which only invest indirect obligation in U.S. Treasury bills, notes, and bonds, U.S. Government Agencies, Municipal Debt, and repurchase agreements with a weighted average maturity of 60 days or less. Money Market Mutual Funds that do not maintain a constant Net Asset Value (NAV) are prohibited. Money market mutual funds are not required to conform to the restrictions detailed in this Investment Policy Statement, but are limited to no more than 20 percent of any individual pools assets. The Treasurer shall be required to investigate money market mutual funds prior to investing and perform a periodic review, but at least annually thereafter while the funds are invested in the money market mutual fund. At a minimum, approved money market mutual funds shall have met either of the following criteria: Attained the highest ranking or the highest letter and numerical rating provided by no less than two NRSROs. Retained an investment advisor registered or exempt from registration with the Securities Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). Money Market Mutual Funds that meet the requirement of California Government code 53601(I) and 53601.6(b). Investment Pools Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations as authorized under 53061 (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: The advisor is registered or exempt from registration with the Securities and Exchange Commission. The advisor has no less than five years of experience investing in the securities and obligations in subdivisions (a) to (o), inclusive of Section 53601. The advisor has asset under management in excess of five hundred million dollars ($500,000,000).
FY 2023-25 Adopted Budget
463
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