Attached is the proposed statement of Investment Policy for 2004 that sets forth the basic policy for investment of public funds.  Issues addressed are basic policy and objectives, types of investments permitted, maturity limitations, qualifications of banks/brokers, payment procedure for securities, safekeeping, portfolio diversification, cash management objective, reporting requirements, internal controls, and compliance with government code.

The only recommended change this year is the monthly liquidity amount increased from $60 million to $67 million due to BWP reserves being higher for fiscal year 2003-2004.

Our 2003 Investment Policy was submitted to the Association of Public Treasurers of the United States and Canada last year and it was certified as a comprehensive written investment policy that meets the criteria set forth by the Association�s Investment Policy Certification Committee.  This is the first time that our investment policy has been certified. 

This recommendation has been reviewed and approved by the Fiscal & Treasurer�s Review Group (F&TRG) and the Treasurer�s Oversight Review Committee (TORC).  The F&TRG members are Michael Flad, Assistant City Manager, Derek Hanway, Financial Services Director, Richard Corbi, Assistant General Manager Finance & Administration, BWP, Marsha Ramos, Council Liaison to the Treasurer�s Office and Stacey Murphy, Council Liaison to the Treasurer�s Office.  The TORC members are Dave Hackett, Bob Jensen, Carrie McCoy and Dick Baker.

I recommend that the City, Redevelopment Agency, Parking Authority, Youth Endowment Services and Housing Authority adopt motions approving the Investment Policy for 2004.