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Home My WebLink AboutR-99-51 RESOLUTIO]~I NO. R-99-51 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNT~_~, FLORIDA, ADOPTING AN INVESTMENT POLICY PURSUANT TO CITY CODE SECTION 2-111 AS AMENDED. ! WHEREAS, state law contains provisions f~r adoption of an investment policy; and ! WHEREAS, the City Council has adopted ( ~rdinance O-99-17, making provision for the adoption of an investment policy by resolutic NOW, THEREFORE, BE IT RESOLVED B OF SEBASTIAN, INDIAN RWER COUNT Section 1. INVESTMENT PO investment policy pursuant to Chapter 218.41 Section 2. CONFLICT. All r; herewith are hereby repealed. Section 3. EFFECTIVE DAT immediately upon its adoption. The foregoing Resolution was moved The motion was seconded by Councilmemb into a vote, the vote was as follows: Mayor Chuck Neuberger Councilmember Walter Barnes Councilmember Joe Barczyk Councilmember Ben A. Bishop Councilmember Edward J. Majchel The Mayor thereupon declared this Resoluti( November, 1999. ri; Y THE CITY COUNCIL OF THE CITY Y, FLORIDA, that: LICY. There is hereby adopted .5, F.S. and identified as attachment 1. an ~solutions or parts of resolutions in conflict This resolution shall take effect >r adoption, by Councilmember ~~. ~ and, upon being put ! Jr. duly passed and Adopted this 3rd day of CITY OF SEBASTIAN, FLORDA Chuck Neuberg~, M~_~ ATTEST: ~2-ath~ ]~. d'H'afforln CMC/AAE City Clerk Approved as to form and legality for the reliance by the City of Sebastian only: Rich S~tfinge~r, Cit~y A~t:o y~ II. IlL CITY OF SI INVESTMEr SCOPE The investment policy applies to the inve: investment balances of the following funds General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds Enterprise Funds Trust and Agency Funds This policy does not apply to the invest~ capitalized interest, redemption, or escrc pursuant to the issuance of bonds where the This policy does not apply to funds not u Sebastian Police Officer Pension Fund, deferred compensation program administe States Conference of Mayors deferred co Employee Benefit Services Corporation. INVESTMENT OBJECTIVES The following investment objectives will b A. The primary objective and the highes safety of principal. Investments of thc ensure the preservation of capital in th ATTACHMENT 1 ;BASTIAN iT POLICY ament of surplus funds which includes cash and nent of principal, interest, reserve, construction, w accounts created by ordinance or resolution : investments are held by an authorized depositary. nder investment control of the City; such as, the the International City Management Association :ed by the Retirement Corporation, or the United mpensation program administered by the Public applied in the management of the City's funds. priority of the City's investment activities is the City shall be undertaken in a manner that seeks to e overall portfolio. There shall be sufficient hqmdlty t~) meet the City s operating, payroll and captta B. requirements. / C. The optimization of investment returns shall be secondary to the requirements for safety and liquidity, while striving for a reasonable rate of return. PRUDENCE ANDETHICALSTANDA The "Prudent Person Rule" shall be use portfolio. The "Prudent Person Rule" sta and care, under circumstances then prew intelligence exercise in the management investment, considering the probable sate derived." RDS d in the management of the overall investment tes: "Investments shall be made with judgement iling, which persons of prudence, discretion and of their own affairs, not for speculation, but for :y of their capital as well as the probable income Page of 4 IV. VI. VII. The Director of Finance or his designee,lcting in accordance with written procedures an, d exercising due diligence, shall not be hel~ personally responsible for a specific security s credit risk or market price changes, provid and that appropriate action is taken to contt PERFORMANCE MEASUREMENT The benchmark yield for the overall perfon rate at least equal to the ninety (90) day Tre DELEGATION OF AUTHORITY An Investment Committee shall be establisl and Director of Finance. The Investment their purchase, except routine transfers bet Account of the City. The Investment Com the City's investment strategy. AUTHORIZED INVESTMENTS Authorized investments are limited pursu~ Cash Management Services Contract. MATURITY AND LIQUIDITY REQUI] To the extent possible, investment and anticipated cash flow requireme maturities of no longer than twenty-fo~ B. Investments do not necessarily have funds are available. The basic criteria 1. Keep maturities short in a period ~ bill auctions or the daily Federal F 2. Keep maturities short in a period c are higher than the long-term rates Maturities should be lengthened expected to remain that way based curve is normal when short-term n 4. Maturities should be lengthened ' economic reports taken as a whole 5. Maturities should be staggered to d that these deviations are reported immediately ol adverse developments. aance of the portfolio is considered to be a market asure Bill rate. led consisting of the City Manager, City Attorney, Committee shall approve all investments prior to ween the State Board Account and the Operating rnittee shall meet at least semi-annually to review tnt to Chapter 166.261, Florida Statutes and the ~,EMENTS ,turities shall be matched with known cash needs ats. Investments of operating funds shall have ~r (24) months. Io be made for the same length of time that the for investment maturities are as follows: f constantly rising interest rates based on Treasury lnds rate. f an inverted treasury yield curve (short-term rates ,) when the treasury yield curve is normal and is on economic reports taken as a whole. The yield :es are lower than long-term rates. hen interest rates are expected to fall based on rovide for sequential maturities. Page of 4 VIII. IX. Co Investments shall be purchased with tt retum on the City's funds for the stat. (such as treasury and federal agency se may offer opportunities for favorable when liquidating an investment pri, conditions (e.g., rising or falling inter~ at a favorable return. BID REOUIREMENTS Investments shall be made through a comp¢ and/or dealers shall be contacted and ask. except those with City investments of $2 Bids shall be awarded based on the highes the Director of Finance, with the Local Go, by the State Board of Administration wh increase in the very near futures and is not lower interest rate. Surplus funds may als, Funds Trust Fund when investments in authorized per institution. However, on an exception basis the City divest itself of such investments at prevaili Local Government Surplus Funds Direct obligations of the U.S. Treas Florida League of Cities Florida Mt The Director of Finance or his designee sh~ expedite the purchase of the investments vi notice shall be confirmed by a letter fi:or signatory of the City which states the fund principal amount of the investment, the applicable to the investment, the maturity RISK AND DIVERSIFICATION Investments shall be diversified to control t assets in a specific maturity, issuer, instru which these instruments are bought and sol one depository without the approval of tl~ funds for the Local Government Surplus F of Administration pursuant to Chapter 218, All investments shall be held in the name ¢ an asset of the City of Sebastian. Securities, purchased fi:om a bank shall be held in s Securities purchased fi.om Primary deale~ custodian. Due to the cost of safekeepinl pursuant to a Cash Management Services C to the demand account for which the repurc .e intent of earning a favorable rate of interest and ~'d maturity. The value of individual investments curities) will fluctuate with market conditions and ~,ains if liquidated. All factors shall be considered >r to its scheduled maturity, including market ..st rates) and the opportunity to reinvest the funds ~,titive bid process. A minimum of three (3) banks ~d to provide bids on the securities on question, ,000,000 unless approved by the City Manager. yield on the investment, or, at the discretion of ernment Surplus Funds Trust Funds administered ~n it is deemed probable that interest rates will ~rudent to commit funds for a period of time at a be invested with the Local Government Surplus cal financial institutions exceed the maximum nay invest in the following instruments and may .g market prices or rates: rust Fund ary .nicipal Investment Trust .11 notify the successful bidder verbally in order to a a check, wire transfer or account transfer. This the Director of Finance or another authorized ad account for which the investment is made, the 7ield or interest rate, any premium or discount ~te, and instructions for payment of interest. he risk of loss resulting fi:om overconcentration of ment, dealer, savings and loan, or bank through d. No more than $2,000,000 shall be held by any e City Manager. The depository that holds the ~nds Trust Fund administered by the State Board F.S., shall be excluded from this requirement. ,f the City of Sebastian and shall be designated as , other than non-negotiable certificates of deposit, afekeeping by the trust department of the bank. shall be held in safekeeping by a third party one-business day repurchase agreements made ,ntract may be placed with the depositary relating hase agreement was purchased. Page 3 of 4 XI. XII. XIII. XIV. AUTHORIZED iNVESTMENT INSTIIUTIoNS AND DEALERS The Investments shall only ,b,e purchased qualified public depositories pursuant to Purchases of all investments, except those Fund administered by the State Board of.~ be made through the local office of the fi only be entered into with the financial insti' CASH MANAGEMENT SERVICES The City shall enter into a Cash Managen than March 31, 2000. This contract shal banks. This contract shall provide for zero balanc{ and construction accounts of the City. The Finance. The Director of Finance or his designer Management Services Contract. The inw agreements pursuant to this contract shz working days. These investments hall be [ Funds in excess of $1,500,000 shall be inv¢ INVESTMENT REPORTS In accordance with City of Sebastian Ordi~ shall be provided to the City Council. investments in the portfolio by fund, type, value, and income earned as of the report d iNTERNAL CONTROLS The Director of Finance shall, by January and procedures for investment transactior City Manager shall be notified immedi investment policies. Compliance with th, independent auditors as part of the City's a POLICY REVIEW This Investment Policy shall be reviewed a recommendations for amendments as appr{ arm financial institutions that are designated as" hapter 280, F.S., or from Primary dealers. from the Local Government Surplus Funds Trust .dministration pursuant to Chapter 218, F.S., shall aancial institution. Repurchase agreements shall .ution providing Cash Management Services. lent Services Contract with a local bank no later be placed for bid among all the qualified local checking accounts for certain revenue, operating, se accounts shall be designated by the Director of shall monitor investments pursuant to a Cash ~stment of surplus funds in overnight repurchase 11 not exceed $1,500,000 for three consecutive ;uaranteed by obligations of the U.S. Government. :sted in accordance with the preceding paragraphs. tances Section 2-120, quarterly investment reports ['he investment report shall include a list of the maturity, interest rate or yield, book value, market ate. 1, 2000, prepare written internal control policies s made pursuant to this Investment Policy. The ately upon deviations from currently approved ,~se internal controls shall be audited annually by anual financial audit. anually by the Director of Finance who shall make ~priate. Page of 4