Investment Policy

The Bear Valley Water District fomulated the following investment policy and procedures in compliance with Government Code Sections 53600 et seq. for the prudent and systematic investment of District funds in support of the District’s overall mission.  

This policy provides that the District’s General Manager, if directed by the Board of Directors, is to manage the investment program according to the primary objectives of the District and periodically prepare a statement of investment positions to be considered by the Board at a public meeting according to Goverment Code 53646(a).  The District’s investment process and Policy is subject to annual review and evaluation at a public forum.

Objectives

The primary objectives of the District’s investment activities shall be, in order of priority:

Safety - The safety of principal is the foremost objective of the District’s investment program. The District’s investments shall be undertaken in a manner that shall strive to preserve the District’s capital.        

Liquidity - The District’s secondary objective shall be to meet its liquidity needs. The investment portfolio shall maintain sufficient liquidity to enable the District to meet all operating requirements which might be reasonably anticipated.    

Yield - Yield shall become a consideration only after the basic requirements of safety and liquidity have been met. The investment  portfolio  shall be designed  with the objective  of attaining a market rate of  return throughout budgetary and economic cycles, taking into account the investment risk, constraints and the cash flow characteristics of the portfolio.