By: Libi Uremovic, June 15, 2014 | Original Article at Patch.com
Beaumont City Council Meeting Agenda Item 7.a.18 – Investment Policy
SCOPE: This investment policy applies to activities of the City of Beaumont with regard to investing the financial assets of all funds, including, but not limited to, the following: General Fund; Special Revenue Funds; Capital Project Funds; Enterprise Funds; Debt Service Funds; Special Assessment Funds; Community Facilities Funds; and Internal Service Funds.
AUTHORITY: The City Manager is designated as Investment Officer for the City and with assistance from the Finance Director, is responsible for the investment activities of the City.
DIVERSIFICATION BY INSTRUMENT:
California State Law dictates the Maximum Percent of Portfolio a local agency can invest. The law can be found at Government Code 53601 and 53635. The percentages are listed on Page 33 (35/90) of the 2013 Audit.
The City incorrectly lists ‘Local Agency Bonds, Notes, Warrants or other evidence of Indebtedness’ at 50%, but the Audit clearly states the Maximum for Bonds is 20%.
Let’s be very clear: The City has $1.8 Million in the State LAIF Account and a few million in the General Fund Checking and that’s it.
The bond debt the City carries is exactly that: debt. In a democracy the people own the city. When the city purchases bonds it is not an ‘investment’, it is a debt that must be repaid by the people of the city.
http://www.ci.beaumont.ca.us/DocumentCenter/View/18882