[Ord. No. 2681 §1, 12-20-2004]
It is the policy of the City of Pleasant Valley (hereinafter
referred to as "the City") to invest public funds in a manner which
will provide the highest investment return with the maximum security
while meeting its daily cash flow demands and conforming to all State
laws governing investment of public funds.
[Ord. No. 2681 §1, 12-20-2004]
This investment policy applies to all financial assets of the
City. These funds are accounted for in the City's annual budget and
semi-annual financial report. It is the intention that investments
of any and all City funds shall be subject to this policy.
[Ord. No. 2681 §1, 12-20-2004]
A.
In
recognition of its fiduciary role in the management of all public
funds entrusted to its care, it shall be the policy of the City that
all investment balances be invested with the same care, skill, prudence
and diligence, under circumstances then prevailing, that a prudent
and knowledgeable person would 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.
B.
Further,
it shall be the policy of the City that all investments and investment
practices comply with or exceed all Statutes and guidelines governing
the investment of public funds in Missouri (e.g., certificates of
deposit not deposited outside the State of Missouri).
[Ord. No. 2681 §1, 12-20-2004]
A.
The
primary investment objectives for all funds covered by this investment
policy shall be, in order of priority, as follows:
1.
Safety. The safeguarding of principal shall be the
foremost objective of the investment program. All other objectives
shall be subordinate to the attainment of this objective.
2.
Liquidity. The investment portfolio shall be managed
at all times with sufficient liquidity to meet all daily and seasonal
needs, as well as special projects and other operational requirements
which might be reasonably anticipated.
3.
Return on investment. The investment portfolio shall
be managed with the objective of attaining a rate of return throughout
budgetary and economic cycles, commensurate with the investment risk
constraints and the cash flow characteristics of the portfolio.
[Ord. No. 2681 §1, 12-20-2004]
The delegation of authority made hereunder shall be construed
narrowly so that where the authority of an officer/employee is in
question, the matter shall be brought to the Board of Aldermen. As
the authority to manage the investment of public funds on behalf of
the City is derived from State law and the Charter of the City of
Pleasant Valley, management of the investment program shall be by
the City Treasurer. The City Treasurer shall not invest public funds
in a manner inconsistent with this investment policy.
[Ord. No. 2681 §1, 12-20-2004]
Officers and employees 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 City Clerk any material financial interest in
financial institutions that conduct business within this jurisdiction,
and they shall further disclose any related to the performance of
any City investment, particularly with regard to the time of purchases
and sales. The City Clerk shall make any such disclosure to the Board
of Aldermen.
[Ord. No. 2681 §1, 12-20-2004]
No public deposit shall be made except in a qualified public
depository as established by State law. All financial institutions
and broker/dealers who desire to become qualified bidders for investment
transactions must supply the City with adequate proof of security
and stability as the City may require. An annual review of the financial
condition and registrations of qualified bidders will be conducted
by the City.
[Ord. No. 2681 §1, 12-20-2004]
A.
The
City is empowered to invest in the following types of securities:
1.
Bank checking accounts, time deposits or certificates of deposit
at commercial banks and savings and loan associations that are FDIC
insured.
2.
U.S. Treasury obligations with maturities of ten (10) years or less.
3.
Money market funds.
4.
Repurchase agreements.
5.
Market certificates.
6.
Short-term obligations of U.S. Government agencies and instrumentalities
approved for investment purposes by the Board of Aldermen.
[Ord. No. 2681 §1, 12-20-2004]
All security transactions, including collateral for repurchase
agreements, entered into by the City shall be conducted on a delivery-versus-payment
(DVP) basis. Securities will be held by the City or by the City's
designated custodian and shall be evidenced by the safekeeping receipts.
[Ord. No. 5681 §1, 12-20-2004; Ord. No. 2860 §1, 7-21-2008]
The City will diversify its investments. The diversification
objective is to reduce overall portfolio risks while attaining average
market rate of return. With the exception of U.S. Treasury Securities
or certificates of deposit, no more than fifty percent (50%) of the
total investment portfolio will be invested in a single security type
or with a single financial institution. Nor will investments exceed
the maximum amount (one hundred thousand dollars ($100,000.00)) of
FDIC insured investment at a single financial institution, except
where provisions have been made for additional insurance or the pledging
of bank owned assets (securities), as required by Missouri law for
depositories of public funds.
[Ord. No. 2681 §1, 12-20-2004]
To the extent possible, the City will attempt to match its investments
with anticipated cash flow requirements. Unless matched to a specific
cash flow, the City will not directly invest in securities maturing
more than five (5) years from the date of purchase.
[Ord. No. 2681 §1, 12-20-2004; Ord. No. 2860 §2, 7-21-2008]
The City Treasurer, in collaboration with the City Clerk, shall
establish an annual process of independent review by an external auditor.
This review will provide internal controls by assuring compliance
with policies and procedures.
[Ord. No. 2681 §1, 12-20-2004]
The investment portfolio shall be designed with the objective
of obtaining a rate of return throughout budgetary and economic cycles,
commensurate with the investment risk constraints and the cash flow
needs. As the investment strategy is passive, the basis used by the
City to determine whether market yields are being achieved shall be
the three (3) month U.S. Treasury Bill.
[Ord. No. 2681 §1, 12-20-2004]
The performance of each investment shall be stated annually
as part of the annual budget and annual audit report. The report will
include earnings, losses, trades and market breakdown/diversification.
[Ord. No. 2681 §1, 12-20-2004]
A.
The
meaning of any term herein shall be the same as in the State law aforesaid
or if not contained therein, then in the glossary for the Model Investment
Policy of the Municipal Treasurer's Association of the United States
and Canada.
B.
Any
modification made hereto must be approved by the Board of Aldermen
and submitted to the appropriate State agency.
[Ord. No. 2724 §1, 4-3-2006]
The procedure set forth under Section 125.025 shall be incorporated herein in its entirety.
