(A) Pooled cash. Cash for all general city funds are consolidated into one general bank account and invested on a pooled concept basis. Interest earnings are allocated according to fund ledger balances.
(B) Competitive bids. Purchase and sale of securities are made on the basis of competitive offers and bids.
(C) Time deposit placement. Insured $100,000 time deposits are not placed with banks and/or savings and loan associations unless an office is maintained in the state.
(D) Security marketability. The marketability (salability) of a security is considered at the time of purchase, as the security may have to be sold prior to maturity in order to meet unanticipated cash demands.
(E) TCD evaluation. Time certificates of deposit (TCD) are evaluated in terms of FDIC or FSLIC coverage. For deposits in excess of the insured maximum of $100,000, approved collateral at full market value is required, as prescribed in the Cal. Gov’t Code 53652.
(F) NCD evaluation. Negotiable certificates of deposit (NCD) are evaluated in terms of the credit worthiness of the issuer, as these deposits are unsecured and uncollateralized promissory notes.
(G) Broker authorization. Investment transactions are executed only with previously approved brokers/dealers.
(H) Financial capacity. The financial capacity and credit worthiness of the financial institution shall be considered prior to the placement of city investments.
(I) Safekeeping. Securities purchased from secondary brokers/dealers shall be held in third party safekeeping by the Trust Department of the city’s bank, or by another third party trustee designated by the City Treasurer. Securities purchased from primary dealers shall be held in the name of local agency with the trustee executing investment transactions as directed by the City Treasurer.
(Ord. 342, passed 12-15-1987)