HomeMy WebLinkAbout1989-22 Amending the Investment Policy of the Town of Vail. E
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ORDINANCE NO. 22
Series of 1989
AN ORDINANCE AMENDING THE INVESTMENT POLICY
OF THE TOWN OF VAIL.
WHEREAS, the Town Council believes that certain amendments in the Investment
Policy of the Town of Vail will be beneficial.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL,
COLORADO:
1. The Investment Policy of the Vail Town Council for the Town of Uail is
hereby amended to read as set forth in Exhibit A attached hereto and made a part
hereof.
2. If any part, section, subsection, sentence, clause or phrase of this
Ordinance is for any reason held to be invalid, such decision shall not affect the
validity of the remaining portions of this Ordinance; and the Town Council hereby
declares it would have passed this Ordinance, and each part, section, subsection,
sentence, clause or phrase thereof, regardless of the fact that any one or more
parts, sections, subsections, sentences, clauses or phrases be declared invalid.
3. The Town Council hereby finds, determines and declares that this Ordinance
is necessary and proper for the health, safety and welfare of the Town of Vail and
the inhabitants thereof.
4. The repeal or the repeal and reenactment of any provision of the Municipal
Code of the Town of Vail as provided in this Ordinance shall not affect any right
which has accrued, any duty imposed, any violation that occurred prior to the
effective date hereof, any prosecution commenced, nor any other action or
proceedings as commenced under or by virtue of the provision repealed or repealed
and reenacted. The repeal of any provision hereby shall not revive any provision or
any ordinance previously repealed or superseded unless expressly stated herein.
INTRODUCED, RERD AND APPROVED ON FIRST READING this ].9th day of September ,
1989, and a public hearing shall be held on this Ordinance on the 19th day of
September 1989, at 7:30 p.m. in the Council Chambers of the Vail
Municipal Building, Vail, Colorado.
Ordered published in full this 19th day of September 1989.
Kent R. Rose, Mayor `
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ATTEST:
Pamela A. Brandmeyer, Town Clerk
INTRODUCED, READ AND APPROVED ON SECOND READINGm AND ORDERED PUBLISHED
~~ 'f.1~,1, th i s 3 ~ day of l / C.1~1.1,1/ 1989 .
Kent R: Rose, Mayor
ATTEST:
.f ,6~~Y1(.G(+l~
Pamela A. Brandmeyer, Town Clerk
_2_
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TOWN OF VAIL MEMORANDUM
To: Ron Phillips
Council Members
F~tOM: Steve Thompson
DATE: September 6, 1959
RE: investment Policy
•
Enclosed is the ordinance which amends the investment policy_
The amendments, as discussed with Council at the August 15th work
session, have been incorporated within the present policy. The
changes are in bold lettering and language to be deleted is crossed
out. The following summarizes the effect of the amendments and
references the section of the policy being amended:
Section I. Adds Section XVIT .. Policy Review, requiring
annual review of policy.
Section IT. Includes the marketing funds portion of cash
and investments within the scope of this
policy.
Section TV. Requires Town Manager to review but not approve
the investment report.
Section VI.2 Adds insured by FSLIC ar other agency of the
Federal Government since FSLIC is being phased
out. Allows for deposits with savings banks.
Section V2.4 Gives flexibility to use other government
agency securities without amending the policy.
Section VII. Does not require open-term repurchase
transactions to have two bids.
Section X. Adding savings banks as a legal investment
requires defining a maximum percent of
portfolio.
Section XII. 2nd paragraph - adds savings banks.
3rd paragraph - requires bidding banking
services beginning in 1994.
4th paragraph - allows use of non-primary
brokers.
Section XVII, New section requiring Council review of policy.
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VAiL TOWN COUNCIL
COUNCIL POLICY STATEMENT 88-1
INVESTMENT POLICY
SECTION I ~ STATEMENT DF PiTRPOSE
The Investment Policy of the Vail Tawn Council for the Town of
Vail represents the financial boundaries within which its cash
management process will operate.
Areas covered by this policy include:
II. Scope of Financial Funds to be Invested
:..222_ Investment Objectives
TV. Delegation of Authority for Investment Decisions
V, investment Prudence
VI. Investment Instruments
VII. Competitive Selection of Investment Instruments
VIXI. Interest Allocation Method
IX. Safekeeping and Custody
X. Portfolio Diversification
XI. Maturity Scheduling
XI2, Qualified Institutions and P~ima~y-Demers
Broker/Dealers
X2II. Investment Committee
XIV. Reporting Requirements
XV, Monitoring and Adjusting Portfolio
XVI. Internal Controls
XVTT. Policy Review
Cash management goals shall be developed within the constraints of
this policy statement. Goals shall include:
A. Percentage of cash invested. The Tawn shall be
earning interest on all available funds for investment.
B. Percentage of Return (Yield). A targeted range of
yields should be stated as a goal. This target yield
goal shall be presented in the annual operating budget.
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C. Total Dollar Return Goal. Combines the goals of
percentage of cash available and the percentage of yield
to obtain a total dollar return goal.
SECTION II. SCOPE
This investment policy applies to all financial funds of the Town
of Vail {hereby referred to as the "Town"). These funds are
accounted for in the Towns comprehensive Annual Financial Report
and currently include the:
General Fund
Capital Projects Fund
Construction Funds
Special Revenue Funds:
Real Estate Transfer Tax
Parking Fee Fund
Conservation Trust Fund
Marketing Fund
Enterprise Funds:
Internal Service - Fleet Maintenance Fund
Internal Service -- Health Insurance
Debt Service Fund
Special Assessment Funds
Monies held by the Colorado State Treasurer and Eagle County
Treasurer during tax collection periods shall be governed by State
of Colorado and Eagle County investment policies and are not
subject to the provisions of this policy.
SECTION TTx. INVESTMENT OBJECTIVES
Each investment transaction shall first seek to ensure capital
lasses are avoided, whether they are from default of securities or
erosion of market value. The Town, as its second mayor objective,
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SECTION III. INVESTMENT OBJECTIVES {Continued)
seeks to attain market rates of return on its investments. Market
rate objectives must be consistent with constraints imposed by the
primary objective of the safety of principal, internal cash flow
considerations and any Town of Vail ordinance, restricting the
placement of public monies. Speculative investments will not be
allowed. Speculative investments are those attempting to gain
market premium appreciation through short term market volatility
resulting in increased risk and Toss exposure. The Town will not
purchase a security which cannot be held to maturity. This does
not mean an investment cannot be sold prior to maturity.
SECTION IV. DELEGATION OF AUT~iORITY
Management responsibility for the investment program is held by
the Town Manager and appointed designees. No employee may engage
in an investment transaction except as provided under the terms of
this policy and any procedures which may be established by the
Town Manager. The Town Manager shall review and-appre~e the
monthly investment report (see section XTV}.
Tt shall be the duty of the Controller to manage the day-to-day
operations of the portfolio, and place actual purchase/sell orders
with institutions. In the absence of the Controller, the
Administrative Services Director shall assume these duties.
The authority far the investment philosophy and selection of
investment managers for the Town of Vail Employee Pension Plan and
the Town of Vail. Police and Fire Employees Pension Plan shall be
the responsibility of the Pension Plan Trustee as defined in the
pension plan document.
SECTION V. INVESTMENT PRUDENCE
Investments shall be made with reasonable financial judgement and
care, under circumstances than prevailing, which persons of
prudence, discretion and intelligence exercise in the management
of their awn affairs, not for speculation, but for investment,
considering the primary objective of safety of principal as weal
as the secondary objective of the obtainment of market rates of
return.
Investment officers acting in accordance with written procedures
and exercising due prudence shall be relieved of personal
responsibility for an individual security's credit risk or market
price changes, provided deviations from expectation are reported
in an timely fashion, and appropriate action is taken to control
adverse developments,
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SECTION VI. INVESTMENT INSTRUMENTS
The Town shah. invest in the fallowing accounts, or securities:
1. Fully collateralized or insured interest bearing
checking accounts, savings accounts, and certificates of
deposit at commercial banks with amount not to exceed
$100,000 if the bank is not designated as a qualified
institution by the Investment Committee.
Collateral shall be limited to treasury bills and notes,
municipal bonds, and government agency bonds and Hates.
Real estate mortgages are prohibited for use as
collateral.
A commercial bank may use any securities authorized by
the Public Deposit Protection Act as collateral under
the following circumstances:
When money is being wired from one bank to another and
far some reason the transaction is not completed and
in order to protect the Town's funds it is necessary
to deposit them into an account far one banking day.
plus any consecutive days that fall on, a Saturday,
Sunday, ar a holiday.
2. Certificates of deposit at savings and loan associations
insured by the FSLIC or other agency of the federal
government with amount not to exceed $99,000.
Deposits ra~ith savings banks insured by the FDIC with
amount not to exceed $99,040.
3. Treasury bills, treasury notes, treasury bonds and
Federal agencies securities which are guaranteed by the
full faith and credit of the United States of America.
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Barth- --ar -t~xe ~F2~I~.
The following U.S. Government Agency Securities:
Discount securities
Farm Credit Consolidated System-ride discount notes
Federal Home Loan Banks discount notes
Federal Hame Loan Mortgage Corporation (Freddie Mac}
discount notes
Federal National Mortgage Association (FNMA)
Variable-~arate securities
Student Loan Marketing Association (Sallie Mae)
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Coupon securities
Federal National Mortgage
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Land Bank
Association (FNMA)
5. Colorado Public Investment Pools. The Town may
participate in a Colorado Public Investment Pool, the
Colorado Local Government Liquid Asset Trust or other
similar local government pools organized in conformity
with Part 7 of Article 75 of Title 24, CRS, which
provides specific authority for pooling of local
government funds.
6. Money Market accounts which primarily invest in treasury
notes, bills and bonds and governmental agency
securities for which shares may be purchased for $1.00
and liquidated for $1.00.
Repurchase agreements - with either qualified commercial
banks or a primary securities dealer for which a properly ex-
ecuted master repurchase agreement has been entered into by
the Town. Repurchase agreements involving pooled collateral
shall be avoided. The securities used as collateral shall be
safekept in accordance with Section IX on Safekeeping and
Custody,
The Town will concentrate its investment efforts in, but nat to be
limited to, U.S. Treasury obligations, certificates of deposit and
interest bearing checking accounts issued by financial
institutions located in the Town, Eagle County and the State of
Colorado.
SECTION VII. COMPETITIVE SELECTION OF INVESTMENT INSTRUMENTS
If a specific maturity date is required for cash flow purposes,
bids will be requested for instruments which meet the maturity
requirement. If no specific maturity is required, a market trend
(yield curve) analysis will be conducted to determine which
maturities would be most advantageous. After selecting a type of
instrument at least two bids should be obtained from similar
institutions. Two bids are not required if treasury bills or
notes are purchased at a treasury auction or for overnight or
open--term repurchase transactions.
The Town may place an investment with a local institution that is
not the highest bidder, provided the bid is not more than 25 basis
points below the highest bidder.
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SECTION X. PORTFOLIO DIVERSIFICATION
The Town will diversify use of investment instruments to avoid
incurring unreasonable risks inherent in overinvesting in specific
instruments, individual financial institutions.
Maximum Percent
of Portfolio
Diversification by Instrument:
Money Market & Interest Bearing
Checking Accounts with
Commercial Banks 50%
Money Market Accounts 500
U.S. Treasury obligations
(Bills, Notes & Bonds) 100%
U.S. Government Agency Securities
(per Section VI.4) IOOo
Repurchase Agreements 75%
Certificate of Deposit
Commercial Banks or 100
Savings Banks
Certificate of Deposit
Savings & Loan Association 25%
Local Government Investment pool 100%
Diversification by Financial Institution:
Repurchase Agreements
No more than 500 of the total investment portfolio
shall be secured in Repos with any one institution,
Certificates of Deposit - Commercial Banks
No more than 200 of the total investment portfolio
shall be secured in any one commercial bank's CDs.
If the amount of any of the above investments are in excess of the
percentage allowed, it is not considered a violation of this
policy if the amount is corrected within 30 days.
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SECTION XT.
MATURITY Son"•DULING
Investment maturities far operating funds shall be scheduled to
coincide with projected cash flow needs, taking into account
large routine expenditures {payroll, bond payments) as well as
considering sizeable blocks of anticipated revenue (sales tax,
property tax), The average maturity of the portfolio shall never
exceed 2 years.
SECTION XII. QUALIFIED INSTITUTIONS AND ~'t23MA~C~',~r~L.r.x~
BROKER/DF.AT.F.RS
Qualified banks - can only be commercial banks and the Town's
investment with the bank may be in excess of $100,000. The Town's
Finance Controller shall obtain and review the bank's quarterly
consolidated report of condition ("Call" Report) - the annual
audited financial statements, the monthly listing of securities
pledged far collateralization, and the independent bank
evaulation, quarterly, to determine that the bank meets the
standard selection criteria established by the Investment
committee.
Non-qualified banks - can be either commercial banks or savings
and loans or savings banks and the Town's investment with the bank
is ar will not be in excess of $100,000. The Finance Controller
shall inquire with bank officials and/or review an independent
bank evaulation to determine the bank meets the standard selection
criteria established by the Investment Committee.
The Town shall select a primary bank, the bank the Town uses to
process daily deposits and checks, every two years beginning in
1990. A formal request for proposal should be used in the
selection process.
Securities dealers not affiliated with a bank shall be required to
be classified as reporting dealers affiliated with the New York
Federal Reserve Bank, as primary dealers. Broker/dealers which
are not primary dealers may be used if they have been approved by
the Investment Commmittee. The Investment Committee shall develop
and document the methodology for qualifying non-primary
broker/dealers.
SECTION XIIT. INVESTMENT COMMITTEE
There is hereby created an investment committee, consisting of the
Town Manager, Administrative Services Director, and the Finance
Controller. Members of the committee will meet at least quarterly
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SECTION XIII. INVESTMENT COMMITTEE (Continued}
to determine general strategies and to monitor results. Minutes
of the decisions made by the investment committee shall be kept on
file in the Town Clerk's Office. The committee shall include in
its review and deliberations such topics as: potential risks,
authorized depositories, rate of return, maturity structure and
investment transactions.
SECTION XIV. REPORTING REQUIREMENTS
The Finance Controller will submit a monthly investment report
which discloses investments on the last day of each month. This
report will be distributed to the Town Manager, Town Council
Members, and tha Administrative Services Director. The Finance
Controller will present at least semi--annually the investment
report to the Town Council.
SECTION XV. MONITORING AND ADJUSTING y.i~ PORTFOLIO
The Finance Controller will routinely monitor the contents of the
portfolio, the available markets and the relative values of
competing instruments, and will adjust the portfolio accordingly.
SECTION XVT. INTERNAL CONTROLS
The Finance Controller shall establish a system of written
internal controls, which shall be reviewed annually by the
independent auditor.
SECTION XVII. POLICY REVIEW
The investment policy shall be reviewed annually by the Investment
Committee and the Town Counc~:l.
The effective date of this policy shall be the day of
, 19
Kent Rose, Mayor
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• • •
XIV; Rapoigng Rear ~ - H"`'§
XV. Manlltirktg and Ad~upl}tg
fNL Intsmal Corttrols,, ,~ ~, k : , ~ ,
-. XVII. Polley pevlsw. •~ ;
Cealt ~ Hoak shrN be; drvrlgled ~
Nthln the t:oraatrplgt~ ~ „ _
3gal~ ahd Indudrt Z ~ ~ ;`~i
t B. PrrveMage of Return (Yf~1d~:'{~I~tailrgeted't
'tangs of yklds should bs stated arA goeJ-~k:t
target yfeki gpooad'shaft'~isrprs>!an1s~;~kt,tM~
nuaF opeiatYig budgdt.r';',;.` ': ~,."4^^;:y . ;,:~ ;~:i:,'
C. Total DWfau' Return Qorl: Combinsa the':
gook d parcerttage of atuh avallablr and .tM
artd ourtrnthr I
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CoM~ .1.
'~ ,."° Internal Ssrvlor Hearth kuurertce~-~?,
~DebtServkrFund " q~~~rr;';;, ~.#}'
°' t9flrctil Aaasmertt Farads` a .r~~.~+n~a~
Monies hold by the Cobrrda 3~~ Treaaunr.
sad , Erbls-County iTreaauialr~during~tut:
. perbda chalk be gowllted by,8lalr ol;
Colorado and Erglr Counri ImrattrrwM noNdea
~lauk d era
i Town;ip
allele total
ire
rata
e.lrlohs~lt aooounta whlplr'primarlly
reaa~}y'ilbta bllk'arip~`,bonda;and
gosalnmrrdaf~ securkiee for whkh alarrss
~4r fah+ued and lgaldatsd for;
F~ep r~ha~~ mente~wllh¢~sithor
;qualfffrd~VVrrllr}rro al~`banka or .a.iprlmary';.
;eeourfiMs;drasla# fcr whtoh a propefly exavmed
nfaater' epurp ear„agtarmenis hu been;
il~Irlt4,'l~litP-thl1 ~' TOwq:~' Repurchare
b `}Yobt6d,ootlateral'ahail;.be,
_ ;'Ths ~~ ueed.ae collateral ah~1l,
"~ skeetiii`,aocordattcewkh.;3eclbr,l%.art
alekaepingredCUgvdy„`.,;,_,;-~,,,..•.,:,:~r, ~,.;;,
~~~`The:,Tmtrn wlll.•vatosn~rats .I,b` Inveahltem
'ilforts';IR~ t~ut'not+td;be limped to,- IJ.B, ;TYa1`ury
pbllgalione;leertMlaetas~al~deptisN.arld tmeiest
beeuingg`checldng' avoou 3 kaued by pnanciat
Inatkutiva Iecarrd fn.the:Town, Ergh,.County
and $trte of Cokxttda.'~ "v.' ~ «~~~ ~ ...
^ia" SECTION VIIr COMPETITIVE SEL GTION
INVt681'kIEyT INI9TRUMrrNTB '~'
it , rhdlirlt~ datr k nqul~ ter oAah
flow purpaeea~ ~blda, Ill.,,:br taqueeted ;}or
inettumrnlr'tt whl 'tart the ~• maturhy
requlrelliant K t-a., 'iri6~urRy~i requfredra
nuskefr:lrand ty(r fvrf:aitlsf.ysla will be
conducted to dN _ ne vr~k~i'ma~utillea would
be. ntoaf l~dval+llipivuli,T ierteclGip atype of
Instrunwrd tl Iiillffiee~ehttWd bl~obl~nsd
from ~sErnlltir~lAillluN Ali '~'M~';bids ire nos
required. ~ ire+tavry bl~fs aro purgtiied
at a 1reMepryriyctbn ctrl ~y r~pht ar ope!t•
term rapurohaq tfaraea8lbne. _ ~wr r
'. The,Town~ripa~4hl'aor'arV'Imirlrrient wNh a
boat`Insthufbtixihif;'-~7i~a1'thr h `hat bidder,
the bid kk' hs! ~bt1Wa pttirtEi
,nte•et#hMr ~-.f„y r1- Nos
Ths Town shell 'elect a prlmary banEr, the
~."' 8ER ~ ~ • , AYI~ bank Ifte Town ease to prtrcesa dally deposits
~yN' ` and ohrcka, awry two years beg{nning to 1990.
I~,TI n 'th`e' name d the A tvmtal request for prapoea! ehawk be used in
Tvwn•o1~,Vall and'I~' fitast cease N will;bs a the selection process.
general polky d ths,Town to pool air available Securklee dealers not aryHlated whh a bank
operating: naeh:.~ Int~~:A Traaeury;tCaeti shell be required tv be claseHled as reporting
Ma arrt Inveslmerti, portldb. However, R
g}hag, i{II Irrpr d e~xpRinrer'tMe jh~ daalera aiflllated with Ihs Mew York Federal
N 1. geaarve Bank, ' as prlmary dealers.
pplrrr~rlI~~~rW (and hderasT* minpa'from goofed gr°keNdselara which are not prmary dealers
iunds`shrdl br alkrortrdFYbk ail pw~(dpedhg funds may ~ used K they have been approved by the
trdltAtloElowingordtM` ~,~ e~ ~ Investment CammNtee. The Investment
` A, payment of interest earnings epee a c'. Cammhtea sha11 develop and document the
allocated to designated lands from Ha spec i brokevMeaoen inr qualHying non-prlmary
~mresimenta. SECTION %Ili. INVESTMENT COMMITTED.
B, payment to the General Fund ~ an ThMS is hereby Crealsd an Inveatmenl
amoum equal to the total annual bank eeMce' oamminea, eondstinngg of the Town Manager,
charges as Incurred by the general fund for alt Adndnklralke Sstvlces Olreclar, end the
operating funds as Included in the anneal Flnrnoe Controller. Members of the cornmlilae
operating budget.
C. payment to the Oenerat Fund of a ~g inset at Ivasi quanerly to determine parser
management lee equal to 59r. of Ihs annual rarrteplsa and to mvnNor resuNs. Minutes o1 th
pouted sash land Irurestrrtant eamings. daohlvns made by the Investment eommltte
p. PRYf~t to each fund d an amount brined shall I» kept on file In the Town Clsrk'a afflcr
on the average monthly cash balance Included The aommlttee shall Include In its review am
int ~CTnP~al°BAF KEEPINd ND', autirorlxW deposkorles, rate of re~urnkmaturlty
CUSTODY. structure and InveatrrwM transadlons,
All invoatment secvrNles (which rre hold En . SECTION %IV, REPORTING
book sorry Toren) purchased by the Town shalt be. REQUIREMENTS
held In thlyd~arty salekeeping by an IMINtrtbn Tha Finance Controller will strbmlt a rnonthty
dasl9nated as prkrtary agent. The prlmary again , Im I report whlah dlecbeee investments
shalll ksue a safekesping receipt to the Town .~ tM Irst day o1 each month. Thle repon will be
lkttnq the epedfic Instrurrrsrrt, rate, nWUrAy end dlstdMned to the Town Manager, Town CauncH
other iniormatlon. Members and the Administratlve 8ervtcaa
Srcurfti ants brokerave des art fineltt end ~ armor' Ties Finance Controller wIH present at
primary ag 9.. p - ,feast asrnFannually the inveetmant report to ihs
aelekept by the same bault'e duet deperlmettL Town Council.
SECTION %. PORTFOLIDDIVt~R51F1CATlON gECTlON XV. MONITORING AND
Ths Town will dlversky use of Invastrtaem .,~JLi8TIN3Trltrt'4RTFULKJ
Instruments to avoid incurring unreasonable The Finance Controller wNl rtxnlnely monhor
rlaka inherent In ovetlnveetrng In apasdfla the canunte of the portfolio, the available
lnstrumettts, IndMldval tlnandal institutlorta, markets and the relative values o! competing
DlvereHbatlon by Instrument and tnettuments, end w111 adiuat the porifolla
Maxknum percent of Pordollo aoaordinnggiy.
Money Market and Intaresl Bearing Checkktg SECTN7N %VI. INTERNAL CONTROLS
Atxoums with Commerclat Banks - tw95 Ths Finance Controller ehaiE establish a
U~rese~urty ObHgatlone (~ Hs, Nctss and » tv ~ nually byrth4~dtependsnl audito-~
gonda1.1007~ ~ SECTION %VII. POLICY REVIEW
U. nvvrrnmsm Agency Securkles tper I The Inveatmenl policy shall be reviewed
8ealam VIAy • 1009E annually by the Inveatmenl Cammlttee and the
Repurchase Agreements - 759'. 'Town Connell.
Gertdkate vf.DepaaN - C. .4s1 Banks or! The eNectlve date of thle.policy shall be the
Savinga Barka • 1009E ' day of .
CerlHlcate al E>eposk - 3avings and Loan 19~.
Aesoclatlon • 25Y. PubgsMd In The Vall TraN
Local tiovernntent lnvasimeht Pool -10096 an Baptrmber 22, 1989
' DlversH~atlon by Financial lnatiltttion:
• Repurchase Agreements
Na more than 509'0 of the total Inveatmenl
portfolio she11 be secured in Repoa with any ors
Insikutfon.
I;enHicates o1 DeposN • Cvmmardal Banks
No more than 209E al the total Investment
pordoxo shall be secured kr any one commarclal
:banks CDs. - ' .»
It the avnount of any o1 the above fnveetmenta
are In excess of the percentage allowed, N Is not
Canaldered a vkflatlon M this policy H the amount
Is corrected wNhln 30 days.
SECTION XI. MATURITY SCNEDULINQ
Investment maturltles for operating lands
shall be scheduled to colnctde whh pralected
cash Ilow needs, taking ihto account large
routine expendHuree (payroll, bond paymemal
as well as considering sizeable blocks of
antkpated revenue leales tax, Progeny tax). The
average rnaturHy d the porHolly shall never
exosad 2 years.
SECTION %11. oUALIp11=D INSTI?U714N8
qNp ~3 BROKERtDEALEFi6
Qualilled banks -can only be commerelal
banks and the Town's Investment whh the bank
may bs In exceeds o} 1100.000• Tha 7own'a
Finance Controller sha11 abtaln and review the
bank's quanery oonsolMated report d oondltlon
("Call' Reportl • the annual audNed financial
etatemerats, the monthly Ilaling of securities
pledged for collatsrallxatlon, and the
Independent bank svaivat{on, quarterly, !o
determine that the hank masts the standard
ealeotlon crNerla eataWtshad by the Investment
Committee. '
Nan•qualHled banks can be either
commercial hanks or savinga and loans er
eavinga banks and the Town's Imeetment with
the hankie yr wIN not ba in excess of it00,000.
TM Flnatta Cordroller shall Inqulro with bank
o8bials andlar rwlsw en irrdrpendem bank
svaiuatlon to dtlrrmMr the bank resale the
etendrrd trolrabn orhaia atsblkhsd by ohs
InveatmeM Commhtea
focal ovamment pack' organized M ovnfvnnHy
wkh Marl 7 d. Artlck 78 d rnks 24, CRS, Whtoh
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