[Ord. No. 2012-02 §I, 2-27-2012]
The purpose of this investment policy is to establish the guidelines and requirements for investing of all City revenue funds.
[Ord. No. 2012-02 §II, 2-27-2012]
A. 
The primary objectives, in priority order, of investment of activities shall be safety, liquidity, and yield.
1. 
Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate interest rate risk, custodial risk, and market risk.
a. 
Interest rate risk. The City of Seneca will minimize the risk that the market value of investments will fall due to changes in general interest rates by:
(1) 
Structuring investments so that securities mature to meet cash requirement for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and
(2) 
Investing operating funds primarily in shorter-term securities.
b. 
Custodial risk. The City of Seneca shall have a depository 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.
c. 
Market risk. The City shall comply with State Statute as to types of investments that will be made. The standard investment type will be Collateralized Public Deposits (Certificates of Deposit) but can also include United States Treasury Securities, United States Agency Securities, and other as allowed by State Statute.
2. 
Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands.
3. 
Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout the budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions:
a. 
A security with declining credit may be sold early to minimize the loss of principal.
b. 
Liquidity needs of the portfolio require that the security be sold.
[Ord. No. 2012-02 §III, 2-27-2012]
A. 
Delegation Of Authority. Authority to manage the investment program is delegated to the City Clerk, who shall act as the investment officer in accordance with the established written procedures and internal controls for the operation of the investment program consistent with this investment policy. 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.
B. 
Ethics And Conflicts Of Interest. Officials and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial or investment positions that could be related to the performance of the investment portfolio. Employees and officials shall refrain from undertaking personal investment transactions with the same individual with which business is conducted with the City of Seneca.
C. 
Prudence. The standard of care to be used by the City Clerk shall be the "Prudent Person Rule" and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with the 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.
[Ord. No. 2012-02 §IV, 2-27-2012]
A. 
Authorized Financial Dealers And Institutions. A list will be maintained of financial institutions authorized to provide investment transactions. Periodic review of qualifications of financial institutions will be conducted by the City Clerk. Selection of financial institutions will be made in compliance with the yield objectives of this policy. Preference will be given to those institutions doing business in the City of Seneca.
B. 
Internal Controls. The City Clerk is responsible for establishing and maintaining internal controls that will be reviewed annually with the City of Seneca's independent auditor. The internal control structure shall be designed to ensure that the assets of the City of Seneca are protected from loss, theft, or misuse and to provide reasonable assurance that these objectives are met.
[Ord. No. 2012-02 §V, 2-27-2012]
A. 
Reconciliation. Investment funds shall be reconciled monthly in accordance with the internal control policies of the City.
B. 
Reporting. An investment report shall be provided at least quarterly to the Board of Aldermen.