Lindsay Municipal Code § 3.020 Revenue and Finance

The guidelines set out in this chapter shall be complied with by all city officers who are in charge of investing city moneys, as defIned herein, who shall comply with the following specific guidelines when determining investments:

1. No securities may be purchased on margin.
2. Adequate moneys shall be available at all times to meet appropriated and projected cash flow requirements of the city and its agencies, with only those moneys surplus to those cash flow needs being eligible to be invested.
3. At no time shall more than fifty percent of the city's total cash be invested for a period longer than one year.
4. For any investment for a period longer than five years the following requirements must be met:
5. The security must be a U.S. Treasury note or bond, a Federal National Mortgage Association (FHLB) debenture or Federal Home Loan Bank debenture; and
6. Must be specifically authorized by the city council by resolution.
7. No financial futures or financial options may be purchased as city investments.
8. No moneys may be invested which moneys have been borrowed for the sole purpose of earning arbitrage interest.
9. Interest yield on investments shall be secondary to the basic requirements of safety and liquidity of moneys.
10. The city investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the city's risk constraints, cash flow characteristics of the investment portfolio, and the requirements and guidelines of this chapter; state law and council resolutions.
11. The city investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
12. All city investment officers shall adhere to the guidance provided by the "Prudent man rule" as more specifically set out in the Probate Code Section 16040.
13. All participants in the investment process shall act as custodians of the public trust. Investment officers shall recognize that the investment portfolio is subject to public review and evaluation.
14. The "Suggested Investment Policy Statement Guidelines" and the "Suggested Guidelines for Internal Control" of the California Municipal Treasurers Association and of the California Society of Municipal Finance Officers shall be complied with unless in direct conflict with the City Charter or this chapter.

(Ord. 470 § 3 (part), 1996)