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<br /> <br />City of Santa - Annual Page <br />16 July 1, 2021 - <br />Statement of Investment Policy June 30, 2022 <br />C. A questionnaire developed by FMSA investment staff and approved by the <br />Treasury and Customer Services Manager or Assistant Director of Finance <br />shall address the following general topics: <br />i. A description of eligible investment securities, and a written statement <br />of investment policy and objectives. <br />ii. A description of interest calculations and how it is distributed, and how <br />gains and losses are treated. <br />iii. A description of how the securities are safeguarded (including the <br />settlement processes), and how often the securities are priced and the <br />program audited. <br />iv. A description of who may invest in the program, how often, what size <br />minimum and maximum deposit and withdrawal are allowed. <br />v. A schedule for receiving statements and portfolio listings. <br />vi. A description of how reserves, retained earnings, etc. are utilized by the <br />pool. <br />vii. A model of the fee schedule, and when and how it is assessed. <br />viii. A description of eligibility and/or acceptance of bond proceeds. <br />ix. The pool must contain only the types of investment allowed by <br />California Code. <br />Upon approval for participation in one or more additional investment pools the FMSA <br />investment staff shall thereafter on a regular and continuing basis investigate and <br />reconfirm the pool’s compliance with items listed above and shall monitor the pool’s <br />performance reports. <br /> <br />11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS <br /> <br />Money must be deposited in state or national banks, state or federal savings associations <br />or state or federal credit unions in the State of California. It may be in inactive deposits, <br />active deposits or interest-bearing active deposits. The deposits cannot exceed the amount <br />of the bank's or savings and loan's paid up capital and surplus. <br /> <br />The bank or savings and loan must secure the active and inactive deposits with eligible <br />securities having a market value of one-hundred, ten percent (110%) of the total amount of <br />the deposits. State law also allows as an eligible security, first trust deeds having a value of <br />one-hundred, fifty percent (150%) of the total amount of the deposits. A third class of <br />collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB). <br /> <br />The Treasurer may waive, at his discretion, security for that portion of a deposit which is <br />insured pursuant to federal law. Currently, the first two-hundred, fifty-thousand dollars <br />($250,000) of a deposit is federally insured. It is to the City's advantage to waive this <br />collateral requirement for the first $250,000 because we receive a higher interest rate.