Loading...
HomeMy WebLinkAboutResolution 2001-09 RESOLUTION NO. 2001-09 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA REPEALING RESOLUTION NO. 95-20; ADOPTING IN ACCORDANCE WITH SECTION 218.415, FLORIDA STATUTES, A NEW WRITTEN INVESTMENT POLICY AND PLAN FOR THE INVESTMENT OF THE CITY'S CASH RESERVES, INCLUDING ANY CITY FUNDS IN EXCESS OF THE AMOUNTS NEEDED TO MEET CURRENT EXPENSES; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Ocoee, Florida has heretofore adopted Resolution Number 95-20 establishing a formal investment policy for city funds; and WHEREAS, the City Commission desires to repeal Resolution No. 95-20 and adopt a new investment policy and plan for City funds in order to assure that the City is in compliance with the requirements of Section 218.415, Florida Statutes, NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION 1. The City Commission of the City of Ocoee haE: the authority to adopt this Resolution pursuant to Article VIII of the Constitution of the State of Florida and Chapters 166 and 280, Florida Statutes, and Section 218.415, Florida Statutes. SECTION 2. Resolution Number 95-20, adopted October 17. 1995, is hereby repealed in its entirety. SECTION 3. The City Commission of the City of Ocoee hereby adopts the following as the written investment policy and plan of the City of Ocoee: See Exhibit "A" attached hereto and by this reference made a part hereof. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 5. Effective Date. This Resolution shall become effective immediately upon passage and adoption. PASSED AND ADOPTED this q~day of ~~PT6tltB6t, 2001. ATTEST: FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS lP FOR~~_~ LEGALITY this ~day of~, 2001. ::LEY P3r~4ti City Attorney APPROVED BY THE CITY OF OCOEE COMMISSION AT A MEETING HELD ON THE ABOVE DATE UNDER AGENDA ITEM NO. iTTr B EXHIBIT A City of Ocoee Investment Policy and Plan PURPOSE The purpose of this policy is to set forth the requirements and objectives governing the investment management of the City's cash reserves, including any public funds in excess of amounts needed by the City to meet current expenses. The City recognizes that liquidity needs must be met and has established cash flow projections for the debt service funds, capital project funds, general operating funds and enterprise funds. SCOPE This investment policy applies to all the investment activity of the City of Ocoee, except for its employees' pension funds which are organized and administered separately. Funds subject to this policy include: . General Fund . Special Revenue Funds . Capital projects Funds . Enterprise Funds . Internal Service Funds . Debt Service Funds . Any new fund created by the City, unless specifically exempt at its inception and/or by state statute or federal law. OBJECTIVES The primary objectives for the City's cash reserves are first, protection and safety of the City's funds, second, provision for liquidity, and third, maximized return on the portfolio but minimized risk, in that order. The investment portfolio will maintain sufficient liquidity to ensure cash availability for operating cash flow requirements. Funds of the City will be invested and handled in accordance with sections 166.261 and 218.415 and Chapter 280, Florida Statutes, this policy and City Resolution 94-08. DELEGATION OF AUTHORITY The and are designated as Investment Officers of the City and are responsible for investment decisions and activities, under the direction of the Cit Mana daily administration of the cash management program is handled by . No person may engage in an investment transaction except as provided under the terms of this policy and the procedures so established. The City may appoint an outside investment manager as "Agent" for the City's cash reserves. Positions authorized as investment signatories are City Manager, and The persons holding these positions are also authorized to initiate wire transfers for the City in conformance with Resolution 94-08. Investment transactions shall be approved by any two of the above depositories signatories as required. PRUDENCE AND ETHICAL STANDARDS The level of prudence and ethical standards to be applied by the investment officers shall be the "Prudent Person Rule" as it appears in the Government Finance Officers Association's Committee on Cash Management's Model Investment Legislation, which states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived from the investment." The "Prudent Person Rule" shall be applied in the context of managing the overall portfolio. The investment officers and staff, acting in accordance with the written procedures and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, provided that any changes in the credit risk or market price are reported immediately to the Financial Advisors and that appropriate action is taken to control adverse developments. INTERNAL CONTROLS The shall establish and monitor internal and procedural controls designed to protect the City's assets and ensure proper accounting and reporting of the related transactions. Such controls shall include but not be limited to the following: . Transfer of all funds (purchases, sales, etc.) through a central account only . Separation of functions including transaction authority from accounting and recordkeeping . Custodial safekeeping . Avoidance of bearer-form or non wire able securities . Delegation of authority to staff members . Written confirmation of telephone transactions . Supervisory control of employee actions . Specific guidelines regarding securities losses and remedial action . Documentation of transaction by investment officials . Review of selected investment transactions by external Auditors All secuntles purchased by and all collateral obtained by the City shall be properly designated as an asset of the City. All securities purchased will be transferred when possible only under the "delivery versus payment" (D.V.P.) method but on all securities sold on the "payment versus delivery" method to insure that funds for securities are not released until all criteria relating to the specific transaction are met. The Investment Officers are authorized to accept, on behalf of and in the name of the City of Ocoee, bank trust receipts or confirmations from a third party custodian in return for investment of temporarily idle funds as evidence of actual delivery of the obligations or securities. Any such trust receipt or confirmation shall fully describe the various obligations or securities held, together with the specific number of each obligation or security held, and that they are held for the City in the city's name. The actual obligations or securities, whether in book entry or physical form, on which trust receipts or confirmations are issued may be held by a bank/depository chartered by the United States Government or the State of Florida. The internal controls set forth in this policy shall be reviewed by the independent auditors of the City as part of any financial audit periodically required of the City. MONITORING AND ADJUSTING THE PORTFOLIO The Investment Officers will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments and will adjust the portfolio accordingl y. AUTHORIZED INSTITUTIONS AND DEALERS The City shall purchase securities only through qualified public depositories of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the State Statutes. Repurchase agreements shall only be entered into with primary securities dealers and financial institutions which are state qualified public depositories. Before engaging in investment transactions with an institution, the investment officers shall receive a signed certification form attesting that the individual responsible for the City's account with that firm has reviewed the City's investment policy and that they agree to undertake reasonable efforts to preclude imprudent transactions involving City funds or transactions in violation of the City's investment policy. SECURITY SELECTION PROCESS When purchasing or selling securities, the investment officers shall select the security which provides the highest rate of return within the parameters of this olic and iven the current ob.ectives and needs of the City's ortfolio. AUTHORIZED INVESTMENTS AND MAXIMUM MATURITIES Cash in bank and cash reserves of the City of Ocoee may be invested only In the following and for the maturities indicated: 1. Treasury Bills, Notes and Bonds -with maturity dates within five years or less 2. Insured or fully collateralized Certificates of Deposit of banks -must be a state-certified public funds depository in the State of Florida, as defined in Section 280.02, Florida Statutes -maturities of three years or less 3. Full faith or general faith and credit obligations of the United States Government or United States Government Agency Securities. -maximum maturity shall be five years or less -maximum portfolio mix shall not exceed 25% for these instruments, inclusive of all types 4. Repurchase Agreements !!l Term Repurchase Agreements collateralized by U.S. Treasury Securities and market-to-market -purchased only from authorized dealers as provided for in this policy -any authorized institution with whom the City transacts repurchase agreements must have on file a fully executed copy of the City's Master Repurchase Agreement -must adhere to requirements of the City's Master Repurchase Agreement b) Overnight (sweep) Repurchase Agreements collateralized by full faith or general faith and credit obligations of the United States Government or United States Government Agency securities. -purchased only from the City's contracted banking service provider -securities used as collateralization for the overnight (sweep) Repurchase Agreement will be held for the benefit of the City with a third party, the Federal Reserve Bank or the contracted bank's correspondent bank in an amount not less than 101 % of the overnight amount of the Repurchase Agreement -any authorized institution with whom the City transacts overnight (sweep) repurchase agreements must have on file an executed copy of the City's Master Repurchase Agreement for overnight repurchases and an executed Sweep Investment Service Agreement -must adhere to requirements of the City's Master Repurchase Agreement 5. State Board of Administration local government surplus funds investment pool. -portfolio mix shall not exceed 75% at anyone time 6. State Board of Administration intermediate term investment pool. 7. Money Market funds placed only with financial institutions qualifying as public depositories as provided for in Chapter 280, Florida Statutes. 8. Securities of, or other interests in, any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided the portfolio of such investment company or investment trust is limited to United States Government obligations and to repurchase agreements full collateralized by such United States Government obligations. Investment in derivative products and the use of reverse repurchase agreements or other forms of leverage is prohibited. To the extent possible, the investment officers shall attempt to match investment maturities with known cash needs and anticipated cash-flow requirements. DEBT SERVICE REQUIREMENTS Any debt service requirements or bond covenants will supersede this investment policy. EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of this policy, shall be exempted from the requirements of this policy. At maturity or liquidation, such monies so invested shall be reinvested only as provided for in this policy. DIVERSIFICATION. LIQUIDITY AND RISK The Investment Officers shall diversify use of investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. Diversification strategies shall be determined and revised periodically by the Investment Officers. Liquidity shall be assured through practices ensuring that funds are readily available for current liabilities when due. Minimizing credit risk will be accomplished by limiting the maximum percentage that may be invested in anyone entity or instrument at anyone time, as outlined in this policy. ACCOUNTING METHOD Investments will be carried at fair value. Gains or losses from investments will be credited or charged to investment income at the time of sale. Premiums of discounts on securities may be amortized over the life of the securities. The City shall comply with Government Accounting Standards Board (GASB) requirements. REPORTING The Investment Officers shall submit quarterly investment reports to the City Commission that summarizes types of investments and quarterly yield. The report shall include securities in the portfolio by class or type, book value, income earned and market value as of the report date. Such reports shall be avaIlable to the public. ************************** investmentpolicy.doc 09/04/01 5: 14 PM