[R.O. 2016 § 160.010; Ord. No. 848-09 § 1, 6-9-2009]
It is the policy of the City of Park Hills to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all State and local Statutes governing the investment of public funds.
[R.O. 2016 § 160.020; Ord. No. 848-09 § 1, 6-9-2009]
A. 
This investment policy applies to all financial assets of the City of Park Hills. These funds are accounted for in the City's annual financial statements and include the following and any other funds created in the future:
1. 
General Fund.
2. 
Special Revenue Fund.
3. 
Debt Service Fund.
4. 
Capital Project Fund.
5. 
Trust and Agency Fund.
6. 
Water Fund.
7. 
Sewer Fund.
8. 
Special Allocation Funds II, III, IV.
[R.O. 2016 § 160.030; Ord. No. 848-09 § 1, 6-9-2009]
Authority to manage the City's investment program is derived from the following: Section 30.950, RSMo.
[R.O. 2016 § 160.040; Ord. No. 848-09 § 1, 6-9-2009]
Authority to manage the investment program is granted to the City Administrator, hereinafter referred to as investment officer, and derived from the enabling City ordinance. Responsibility for the operation of the investment program is hereby delegated to the investment officer who shall act in accordance with the established written procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the investment officer. The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.
[R.O. 2016 § 160.050; Ord. No. 848-09 § 1, 6-9-2009]
A. 
The City's Investment Committee shall be responsible for monitoring and reviewing the investment process, setting and monitoring general strategies, selecting and recommending broker/dealers to the City Council for approval, reviewing portfolio performance on a quarterly basis and reporting the status and performance of the investment portfolio to the City Council on a quarterly basis. In reviewing the portfolio performance, the investments shall be revalued to reflect prevailing market prices. Investments which are downgraded below the minimum acceptable rating level shall be reviewed for possible sale within a reasonable time period.
B. 
Members of the Committee shall include:
1. 
City Administrator or designee.
2. 
Economic Developer.
3. 
City Clerk.
4. 
City Treasurer.
5. 
Mayor.
6. 
President Pro Tem of the City Council.
[R.O. 2016 § 160.060; Ord. No. 848-09 § 1, 6-9-2009]
A. 
The standard of care to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officials acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion to the Governing Body and the liquidity and the sale of securities are carried out in accordance with the terms of this policy.
B. 
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.
[R.O. 2016 § 160.070; Ord. No. 848-09 § 1, 6-9-2009]
Personnel involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Investment Committee any material financial interests in financial institutions that conduct business with the City and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio, particularly with regard to time of purchases and sales. Employees and officers shall refrain from undertaking significant personal investment transactions with the same individual with which business is conducted on behalf of the City of Park Hills.
[R.O. 2016 § 160.080; Ord. No. 848-09 § 1, 6-9-2009]
A. 
The primary objective, in priority order, of the City of Park Hills investment activities shall be:
1. 
Internal Controls.
a. 
The investment officer is responsible for establishing and maintaining an internal control structure that will be reviewed annually with the City of Park Hills' independent auditor. The internal control structure shall be designed to ensure that the assets of the City of Park Hills are protected from loss, theft or misuse and to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that:
(1) 
The cost of control should not exceed the benefits likely to be derived; and
(2) 
The valuation of costs and benefits require estimates and judgments by management.
b. 
The internal controls shall address the following points:
(1) 
Control of collusion.
(2) 
Separation of transaction authority from accounting and recordkeeping.
(3) 
Custodial safekeeping.
(4) 
Avoidance of physical delivery securities.
(5) 
Clear delegation of authority to subordinate staff members.
(6) 
Written confirmation of transactions for investments and wire transfers.
(7) 
Development of a wire transfer agreement with the lead bank and third party custodian.
2. 
Safety. Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
3. 
Liquidity. The City's investments portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity).
4. 
Yield. The City's investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above.
[R.O. 2016 § 160.090; Ord. No. 848-09 § 1, 6-9-2009]
A. 
Investments will be made through banks or securities dealers who have been approved by the Investment Committee. Such securities dealers and banks shall be subjected to an appropriate investigation by the Investment Committee. All approved dealers must be fully licensed and registered NASD® broker/dealers or demonstrate compliance with Securities and Exchange Commission Rule 15C3-1. Criteria to select securities dealers will include:
1. 
Audited financial statements.
2. 
Proof of National Association of Securities Dealers (NASD®) certification.
3. 
Proof of State registration.
4. 
Completed broker/dealer questionnaire.
5. 
Certification of having read and understood and agreeing to comply with the City's investment policy.
[R.O. 2016 § 160.100; Ord. No. 848-09 § 1, 6-9-2009]
A. 
The City is empowered by Statute to invest in the following types of securities:
1. 
Time deposit, bearing interest, in banking institutions in the State of Missouri.
2. 
Obligations of the United States Government or any agency or instrumentality thereof maturing and becoming payable not more than five (5) years from purchase.
3. 
Repurchase agreements maturing and becoming payable within ninety (90) days secured by United States Treasury obligations (a Master Repurchase Agreement must be signed with the bank or dealer). Overnight and open repurchase agreements must be collateralized one hundred percent (100%) with approved securities.
B. 
Investment Types. In accordance with and subject to restrictions imposed by current Statutes, the following list represents the entire range of investments that City will consider and which shall be authorized for the investments of funds by the City.
1. 
United States Treasury Securities. The City may invest in obligations of the United States Government for which the full faith and credit of the United States are pledged for the payment of principal and interest.
2. 
United States Agency Securities. The City may invest in obligations issued or guaranteed by any agency of the United States Government as described in V. (2).[1]
[1]
Editor's Note: So in original.
3. 
Repurchase Agreements. The City may invest in contractual agreements between the City and commercial banks or primary government securities dealers. The purchaser in a repurchase agreement (repo) enters into a contractual agreement to purchase U.S. Treasury and government agency securities while simultaneously agreeing to resell the securities at predetermined dates and prices.
4. 
Collateralized Public Deposits (Certificates Of Deposit). Instruments issued by financial institutions which state that specified sums have been deposited for specified periods of time and at specified rates of interest. The certificates of deposit are required to be backed by acceptable collateral securities as dictated by State Statute.
C. 
The following investments are strictly prohibited:
1. 
Borrowing for investment purposes ("leverage").
2. 
Instruments known as "structured notes" (e.g., inverse leveraged floaters and equity-linked securities). Any instrument which is considered a "derivative" instrument (e.g., options, futures, swaps, caps, floors and collars).
3. 
Contracting to sell securities not yet acquired in order to purchase other securities for purposes of speculating on development or trends in the market.
[R.O. 2016 § 160.110; Ord. No. 848-09 § 1, 6-9-2009]
A. 
Collateralization will be required on two (2) types of investments: certificates of deposit and repurchase agreements. The market value (including accrued interest) of the collateral should be at least one hundred percent (100%).
B. 
For certificates of deposit, the market value of collateral must be at least one hundred percent (100%) or greater of the amount of certificates of deposits plus demand deposits with the depository, less the amount, if any, which is insured by the Federal Deposit Insurance Corporation or the National Credit Unions Share Insurance Fund.
C. 
All securities, which serve as collateral against the deposits of a depository institution, must be kept safe at a non-affiliated custodial facility. Depository institutions pledging collateral against deposits must, in conjunction with the custodial agent, furnish the necessary custodial receipts within five (5) business days from the settlement date.
D. 
The City shall have a depositary contract and pledge agreement with each safekeeping bank that will comply with the Financial Institutions, Reform, Recovery and Enforcement Act of 1989 (FIRREA). This will ensure that the City's security interest in collateral pledged to secure deposits is enforceable against the receiver of a failed financial institution.
E. 
All deposits placed in financial institutions must be at least one hundred percent (100%) collateralized with securities which are acceptable to the State Treasurer.
[R.O. 2016 § 160.120; Ord. No. 848-09 § 1, 6-9-2009]
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. To provide sufficient liquidity, the City will invest primarily in securities maturing no more than one (1) year from the date of purchase. Longer-term investments with maturities of no more than five (5) years may consider for the City's Retirement Trust Fund.
[R.O. 2016 § 160.130; Ord. No. 848-09 § 1, 6-9-2009]
A. 
The investment officer shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner that will allow the City of Park Hills to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Governing Body of the City of Park Hills. The report will include the following:
1. 
Listing of individual securities held at the end of the reporting period.
2. 
Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one (1) year duration [in accordance with Government Accounting Standards Board (GASB) 31 requirements]. (Note, this is only required annually.)
3. 
Average weighted yield to maturity of portfolio on investments as compared to applicable bench marks.
4. 
Listing of investment by maturity date.
5. 
Percentage of the total portfolio which each type of investment represents.
[R.O. 2016 § 160.140; Ord. No. 848-09 § 1, 6-9-2009]
The City of Park Hills Investment Policy shall be adopted by ordinance of the City Council. The policy shall be reviewed periodically by the Investment Committee and any recommended changes will be presented to the City Council for consideration.