06-20-07 FPAC Minutes - Laserfiche WebLink

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• 1. Reporting • The Finance Director shall submit annually an investment report that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed in the most recent quarter,as well as the past year, and describe the portfolio in terms of investment securities,maturities,risk characteristics and other features. The report shall explain the quarter's total investment return and compare the return with budgetary expectations. The report shall include an appendix that discloses all transactions during the past year. The report shall be in compliance with state law and shall be distributed to the City Council and others as required by law. Each report shall indicate any areas of policy concern and suggested or planned revision of investment strategies. 2. Performance Standards The City's cash management portfolio shall be designed with the objective of regularly meeting or exceeding a selected performance benchmark,which shall be the average return on three-month U.S.Treasury bills. 3. Marking to Market The market value of the portfolio shall be calculated at least quarterly and a statement of the market value of the portfolio shall be issued at least quarterly. This will ensure that review of the investment portfolio,in terms of value and price volatility,has been performed consistent with the GFOA Recommended Practice on "Mark-to-Market Practices for State and Local Government Investment Portfolios and Investment Pools." In defining market value, considerations should be given to the GASB Statement 31 pronouncement. X. POLICY CONSIDERATIONS 1. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation,such monies shall be reinvested only as provided by this policy. • Page 7 of 8