FINANCIAL POLICIES
G. The City may invest in the LAIF established by the State Treasurer for the benefit of local agencies up to the maximum permitted by State law.
H. Bonds issued by local agencies of the United States, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency rated “A” or better by a NRSRO. "A" rated bonds shall be limited to 36 months maximum maturity and "AA" rated bonds shall be limited to 60 months maximum maturity. Upon any announcement of negative credit watch or downgrade by a major rating agency of any issue within the portfolio, the investment manager should contact the City Treasurer/City Manager and recommend a course of action. If at any time a security falls below “investment grade,” the investment manager should obtain the best bid and take the necessary steps toward liquidation. I. Corporate medium term notes issued by a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, having assets in excess of $500 milli on and having an “A” or better rating criteria at time of purchase on its long-term debentures as provided by a NRSRO. Purchase of corporate medium term notes from corporations on negative credit watch by a major rating agency shall be prohibited. “A" rate d medium term notes shall be limited to 36 months maximum maturity, "AA" rated medium term notes shall be limited to 60 months maximum maturity. The aggregate total of all purchased medium term notes may not exceed 30 percent of the cost value of the portfolio. No more than 5 percent of the cost value of the portfolio may be invested in corporate medium term notes issued by any one corporation. Commercial paper and bankers’ acceptance holdings shall be considered when calculating the maximum percentage in any issuer name. Upon any announcement of negative credit watch or downgrade by a major rating agency of any issue within the portfolio, the investment manager should contact the City Treasurer/City Manager and recommend a course of action. If at any time a security falls below “investment grade,” the investment manager should obtain the best bid and take the necessary steps toward liquidation. J. Money market mutual funds having a rating of “AAA” or an equivalent by no less than two NRSRO with no load and maintained at $1 par value. No more than 20 percent of the cost value of portfolio value at time of purchase, excluding the Special District Funds Portfolio, should be invested in this category, and the City's investment in any specific mutual fund will not exceed 10 percent of the agency’s funds. K. Supranational securities of United States dollar denominated senior unsecured obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rate “AA” or better by an NRSRO and shall not e xceed 30 percent of the agency’s moneys that may be invested pursuant to this section. L. Mortgage Pass-through and Asset Backed Securities - A mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-
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FY 2023-25 Adopted Budget
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