City of Laguna Woods Administrative Policy 2.2 assists the City of Laguna Woods with the investment of its financial assets in a manner that ensures adequate safety and liquidity, while maximizing yield (return) and complying with the requirements of California Government Code sections 53600 and 53635 et seq.
Delegation of Authority
The City Council has delegated its statutory authority to invest and to reinvest City of Laguna Woods funds, and to sell or exchange securities so purchased, to the City Treasurer. The City Treasurer is appointed by, and reports to, the City Manager.
Authorized Investment Types
The following investment types are authorized subject to certain limitations on the amount of funds to be invested, the length of time funds may be invested, the quality of investments, and other matters:
Prohibited Investment Types
Investment types not specifically authorized are prohibited, including financial derivatives (e.g., inverse floaters, range notes, interest only strips derived from a pool of mortgages, and securities that could result in a zero-interest accrual if held to maturity) and foreign investments (e.g., indices and currencies).
The Investment Policy Review Committee is comprised of two members of the City Council who are responsible for conducting at least biannual reviews of the adequacy and effectiveness of the City’s investment policy and preparing related recommendations for City Council consideration.
