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GENERAL MANAGER <br />Tex Ward <br />9@MU@ M39MONK 9 ulmm 1@2012MMIT <br />TO: Board of Directors <br />THROUGH: Tex Ward, General Manager <br />FROM: Sheryl Lewanda, Administrator <br />SUBJECT: Readoption of Investment Policy <br />DATE: February 2, 2006 <br />RECOMMENDATION <br />BOARD OF DIRECTORS <br />Michael D. Berger, Chair <br />Joe Gibson, Vice Chair <br />Mark H. Jacobsen, Director <br />George M. Lange, Director <br />Susan L. Holt, Director <br />It is recommended that the Board of Directors readopt the District's investment policy. <br />DISCUSSION <br />Government Code requires the Board to annually authorize the delegation of investment <br />authority, which is best accomplished by reviewing the District's investment policy. The <br />attached policy was last adopted on February 3, 2005, and has not been changed since <br />that time. <br />The policy is conservative, providing for investment in short term debt instruments and <br />government protected bank instruments. The policy does not allow for more speculative <br />investments such as stocks, mutual funds, corporate bonds, or other corporate securities <br />that trade in the national financial markets. <br />This conservative approach results in lower earnings than more speculative investments, <br />but provides a higher degree of safety and liquidity. Of the three major components in an <br />investment policy, these two take precedent over the third, which is rate of return. <br />Note that over 98% of District cash assets are invested at all times. Essentially, there are <br />no idle funds or funds not earning interest. Maximizing the amount of funds invested <br />helps offset lower earnings that accrue from more conservative investments. <br />The District invests with the Ventura County Investment Pool and the State of California <br />Investment Pool (LAIF). The investment policies of both the State of California and <br />Ventura County limit their pool investments to the same type of investment vehicles <br />contained in the District policy. These policies have previously been shared with the <br />Board. <br />HILLCREST CENTER • 403 WEST HILLCREST DRIVE • THOUSAND OAKS, CALIFORNIA 91360-4223 <br />(805) 495-6471 • FAX: (805) 497-3199 0 E-MAIL: parks@crpd.org • www.crpd.org <br />