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1989-22. E ~ ~ ~ ~ ~~ 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hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein.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 ` ,• 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_ ~ r 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. • r r 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. • s ~ - 2 - 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, • • N - 3 - 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, r r ~ - ~ ~- 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. ~ . ~~~gc~n~c-s~~~sec3a~~t=~t~~=~~g~ kry-=~~~ec~~z`aF~dm'~'-~6an' 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) ;;,, ~-s - 5 - 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. ~r r - 7 - 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. ~ r M - 8 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 ~ s • - 9 - 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 .~ ~ ~ ~ vc ~ 0 3 ~ ~o~Q--oo~~ - n ~ ~~ ~ ~ ~ 3 o~~m~~~'~ ~ Q. ~ ~ ~ cp ocQ. ~ O c b; m a, p~ 0 O ~n _. m ~ n ~ ~ o ~ ~ c a ~~,3a,oc ~ ro ~, ~ a ~ ~ ~~ ~ ~ p X n~~Q~~~~~ ~ O O Q ~ ~ p D. ~ ~ ~ ~~'~N~~~~~ ~ ~ O ~ y; ~ _ D. ~ y a X3.7 C7 ~ -« O. m ~ 7~ n. ~ ~ t~+'' o = ~ ~ ~ ~~ ~~ c I ~ ~' O ~ O c 4 o~mn~~mn~ ~ ~ ~ 4 Q cp ~-,.~~Q~ M ,Y'i, -~ O ~ A ~ A n ~ ~ ~ (j QQO~,Q~~OpOy, {z' ~ ~ ~-~'O m ~' rt ~ "O ~ (D 7 fl O a.~ ~~ T ~~ ~ o ~' m - ~ -~ m -~ rt ov ~ ° o ~ ~ mmo ~~H~-~ r C~, O 4 Q ~ (D ~ ~~ r~i n~_~^~~(?' ~ Q ~` ~ f°V'd~ap~~~ Z -- ~~ Q I ~ ~~ ~ -~; n~- m ~ 7 N ~ ~ O-~ ~~p cc~~ ~ O ~ 0 ~ ~ -~i. O Q~Q~~~7p~ -r ` 'O O ~ ~ N ~ ~~ ~N x a~ O ~ ~ / ~~ ~ ~ ~ ~ O p~ ~C~~ ~O y a ,m` o ~ ~ o Q o.~;oQg~~o~ ~ ,q s ~°~~ D .~. -~ =.: , ~g~ e ~r~N;. ~~ ~ , - ~~~ ~~ o i a -rva `'~$ . Apr a ~ _: @3 (app Z j] ~ Q O }[{~ a ma m m u.~p~' !f ~ - S: - _ - r.+ .-. 4 ~ ~ ~ y~~O f~(/J Z~~ ~ ~ ~'CT a~ ~ y~~ ~ yf1 ~~ a~ ~~`" V,•~ ~ ~ U~1"R~1 ~ ~~ N ~1 Cf ~i 1P ffff~77 1 -,1~a y~ W ~ ~~u~~ ~i ii ~ m~ mo ~j ~' st o• n 5 a ~ .! ~~Sv~6g~ g~~ ~~~i~s ~~ a~g'~n~Rx~~ z' oQ~...~x~ xm9~r~ ~,, abmr~ ~- ~ ~ ~ ~p3~ ~ ~~r ~~d s3 'n8'SL iplz i a~~ ~~ .a toa~r nz g ~ ~ far I' ~~ F.,~ '~~~ ` ' i n+ : Y.c ~ ~y • • • 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 ,_.., ~.,.w , , K4;! ~ Cc . ` ~'~ 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. 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