Financial Policies

(Click the underlined policy headings to view adopted policy document)

Investment Policy
The investment policy is intended to outline the guidelines and practices to be used in effectively managing the District’s available cash and investment portfolio. It applies to all cash and investment assets of the District except those funds maintained in Deferred Compensation accounts for employees. All District monies, including those not required for immediate expenditure, are to be invested in compliance with governing provisions of law (California Government Code Sections 53600 et seq.). The policy lists in detail authorized investments as well as the percentage of portfolio limitations and required ratings for each investment type.

Cash Reserve Policy
The policy states the purpose, source and minimum/maximum funding levels for each of its designated reserves. These reserves have been established to meet internal requirements and/or external legal requirements. These policy guidelines enable restricting funds for future infrastructure needs, replacement of aging facilities, bond reserves and various operating reserves to mitigate unexpected occurrences. These reserves are critical to the District’s financial strength and high bond rating.

Debt and Financial Management Policies
The District’s debt and financial management policy is designed to establish parameters for issuing debt and provide guidance to decisions makers with respect to all options available to finance infrastructure and other capital projects so that the most prudent, equitable and cost-effective method of financing can be chosen. The policy also documents the objectives to be achieved by staff both prior and subsequent to debt issuance. It promotes objectivity in the decision-making process and facilitates the financing process by establishing important policy decisions in advance.

Interest and Financial Risk Management Policy
The purpose of this policy is to establish guidelines for the use and management of all interest rate and risk management agreements incurred in connection with the expected issuance of new bonds, notes and other obligations, or to accompany Bonds already issued, or to manage other risks of the District. This Policy sets forth the manner of execution of swaps, provides for security and payment provisions, risk considerations and certain other relevant provisions in the context of being responsive to the 2003 Recommended Practices of the Government Finance Officers Association (GFOA) regarding the contents of an interest rate swap and financial risk management policy.