HomeMy WebLinkAbout1994- 6 Amending the Investment Policy Set Forth in Chapter 3.52 of the Vail Municipal Code.. - , ~ ~
ORDINANCE NO. 6
SERIES OF 1994
AN ORDINANCE AMENDING THE INVESTMENT POLICY
SET FORTH IN CHAPTER 3.52 OF THE MUNICIPAL CODE OF THE TOWN OF VAIL.
WHEREAS, the Vail Town Council adopts the required investment policy for the Tvwn of
Vail which represents the financial boundaries within which the Town's cash management process.
wiH operate; and
WHEREAS, it has became necessary to update and amend that financial policy.
NOW, THEREI=ORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
VAIL, COLORADO THAT THE FOLLOWING AMENDMENTS WILL BE MADE TO CHAPTER 3.52
OF THE MUNICIPAL CODE OF THE TOWN OF VAIL:
Section 1
That Section 3.52.040 Delega#ion of Authority be amended to read as follows:
Section 3.52.040 Delegation of Authority
Management responsibility for the investment program is held by the Town Manager and
appointed designees. No employee may engage in an investmen# 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 the monthly investment report (see Section 3.52.140).
It shall be the duty of the Finance Controller or his/her appointed designee to manage the
day~to-day operations of the portfolio, and place actual purchase/sell orders with institutions. fn
the absence of the controller, the Finance Director shall assume these duties. Management of
a portion of the portfolio and placing of buy/sell orders for a portion of the portfolio may be
delegated to an independent investment manager designated by the Town Council. The
transactions of any selected independent investment manager will be subject to the Town's
investment policy and will be reviewed and verified by the Finance Department.
The authority for 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
Pian shat! be the responsibility of the Pension Plan Trustee as defined in the pension plan
document. {Ord.22{1989} IV:Ord.34(1988}:Ord 17(1987).}
5ectivn 2
That Section 3.52.110 Maturity Scheduling be amended to read as follows:
Section 3.52.110 Maturity Scheduling
Investment maturities for operating funds shall be scheduled to coincide with projected
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cash flow needs, taking into account large routine expenditures (payroll, bond payments} as welt
as considering sizeable blocks of anticipated revenue {sales tax, property tax). The period from
the date of purchase of a security to its maturity date will be five {5} years or less except for
transactions initiated by an appointed independent investment manager, or if authorized by the
Town Council. (Ord.22{1989} XI:Qrd.34(1988}:Ord.17{1987}.}
Section 3
That Section 3.52.120 Qualified Institutions and Broker/Dealers be amended to read as
follows:
Section 3.52.120 Qualified institutions and Broker/Dealers
Qualified banks -can only be commercial banks and the town`s investment with the bank
may be in excess of one hundred thousand dollars ($100,D0.00}. The town's fiinance controller
shall obtain and review whatever documents are necessary to verify the bank's continued stability
including, the monthly listing of securities pledged for collaterafization to monitor the bank's
collateralization of Town deposits.
t
Nan-qualified banks -can be either commercial banks or savings and loans or savings
banks and the town's investment with the bank is or will not be in excess of one hundred
thousand dollars ($1 DO,OO.DO}. The finance controller shall inquire with bank officials andlor
review and independent bank evaluation to determine that the banks meet 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, at the discretion of the Investmont Committee every three (3} to flue {5} years. A
formal request for proposal should be used in the selection process. A fermaf-~ques#--fer
proposal-.ahnuld be us~d_in t_h~.aelection-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. Brokerldeafers
which are not primary dealers may be used if they have been approved by the investment
committee. The investment committee shall develop and document the methodology for
qualifying non-primary brokerldealers. (Ord.22{1989) XII:Qrd.34(1988}:Ord.17{1987).}
Section 4
That Section 3.52130 Investment Committee be amended to read as follows:
Section 3.52.130 Investment Committee
There is hereby created an investment committee, consisting of the Town Manager,
Finance Director, and the Finance Controller. Members of the committee will meet at least
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quarterly 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 shalt
include in its review and deliberations such topics as: potential risks, authorized depositories, rate
of return, maturity structure, and investment transactions. {Ord.22{1989)
XIIi:Ord.34(1988}:Ord.17{1987).}
Section 5
That Section 3.52.140 Regartina Requirements be amended to read as follows:
Section 3.52.140 Resaartina Reauirements
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 the Finance Director. The Finance Controller will present at least
annually the investment report to the Town Council. {Ord.22(1989)
XiV:~rd.34(1988}:Ord.17(1987}.)
Section 6
That Section 3,52.170 Policv Review be amended to read as follows:
Section 3.52.170 Policv Review
The investment policy shall be reviewed annually by the investment committee. A
recommendation will be made annually to the Town Council for any proposed changes to the
investment policy. {Ord.22(1989} XVlil.}
Section 7
if any part, section, subsection, sentence, clause ar 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 ar phrases be declared invalid.
Section 8
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.
Section 9
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 impaled, 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
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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.
Section 10
All bylaws, orders, resolutions, and ordinances, or parts thereof, Inconsistent herewith are
repealed to the extent only of such inconsistency. This repealer shall not be construed to revise
any bylaw, order, resolution, or ordinance, or part thereo#, theretofore repeated.
INTRODUCED, READ, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON
FIRST READING this ist day of March, 1994, and a public hearing shall be held on this
Ordinance on the 15th day of March, 1994, at 7:3Q p.m. in the Council Chambers of the Vail
Municipal Building, Vail, Colorado.
MargaretsA. Osterfoss, Mayor
ATTEST:
Holly L. McCutcheon, Town Clerk
READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED in full this
15th day of March, 1994.
Margret A. Osterfoss, Mayor '"
ATTEST:
of `~~C.~-~ch.~-•
Holly L.. McCutcheon, Town Clerk
C:lOFi094.6
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Ordinance No. 6, Sages of 1994