It is the purpose of this, statement to set forth the public
policies of the City relating to the investment of public moneys,
and establish procedural requirements as to investment management
practices. The objective of the investment policy and program of the
City shall be as follows:
(a) The safeguarding of all public moneys shall be of the highest priority.
Public money shall not be invested or managed in any matter which
would jeopardize the safety of the principal.
(b) Consistent with the requirement of safety, the objective of the investment
program shall be to aggressively manage and invest all public moneys
to maximize net earnings, consistent with the public responsibility
to secure maximum, safe investment return possible from moneys assigned
to its stewardship, to relieve demands on the property tax and to
otherwise reduce the cost of public services.
[Amended 7-7-2015 by Ord. No. 200]
(a) Temporarily
idle moneys of the City not currently needed may, in accordance with
the procedure hereafter described, be invested:
(1)
In temporary notes or no-fund warrants issued by such investing
governmental unit;
(2)
In time deposit, open accounts or certificates of deposit with
maturities of not more than two years:
a.
In commercial banks which have offices located in such investing
governmental unit; or
b.
In commercial banks which have offices in the county or counties
in which all or part of such investing governmental unit is located;
or
c.
If satisfactory security cannot be obtained in commercial banks
set forth in Subsection (a)(2)a or b, then in such commercial banks
which have main or branch offices in an adjoining county in which
all or part of such investing governmental unit is located.
(3)
In time certificates of deposit with maturities of not more
than two years:
a.
With state or federally chartered savings and loan associations
or federally chartered savings banks which have offices located in
such investing governmental unit; or
b.
With state or federally chartered savings and loan associations
or federally chartered savings banks which have offices in the county
or counties in which all or part of such investing governmental unit
is located; or
c.
If satisfactory security cannot be obtained with state or federally
chartered savings and loan associations or federally chartered savings
banks as set forth in Subsection (a)(3)a or b, then in such state
or federally chartered savings and loan associations or federally
chartered savings banks which have main or branch offices in an adjoining
county in which all or part of such investing governmental unit is
located.
(4)
In repurchase agreements with:
a.
Commercial banks, state or federally chartered savings and loan
associations or federally chartered savings banks which have offices
located in such investing governmental unit, for direct obligations
of, or obligations that are insured as to principal and interest by,
the United States government or any agency thereof; or
b.
Commercial banks, state or federally chartered savings and loan
associations or federally chartered savings banks which have offices
in the county or counties in which all or part of such investing governmental
unit is located; or
c.
If no bank, state or federally chartered savings and loan association or federally chartered savings bank which has its office in such county or counties is willing to enter into such an agreement with the investing governmental unit at an interest rate equal to or greater than the investment rate, as defined in Subsection
(1) of K.S.A. 75-4201, and amendments thereto, then such repurchase agreements may be entered into with commercial banks, state or federally chartered savings and loan associations or federally chartered savings banks which have offices in the State of Kansas.
(5)
In United States treasury bills or notes with maturities as
the governing body shall determine, but not exceeding two years. Such
investment transactions shall only be conducted with the following,
which is doing business within the State of Kansas: any state or national
bank, state or federally chartered savings and loan association, or
federally chartered savings bank; or with primary government securities
dealers which report to the market report division of the Federal
Reserve Bank of New York, or any broker-dealer which is registered
in compliance with the requirements of Section 15C of the Securities
Exchange Act of 1934 and registered pursuant to K.S.A. 17-1254, and
amendments thereto;
(6)
In the municipal investment pool fund;
(7)
In the investments authorized and in accordance with the conditions
prescribed in Section 2 of the Municipal Investment Pool Fund Act;
(8)
In the trust departments of commercial banks which have offices
located in such investing governmental unit or with trust companies
which have contracted to provide trust services under the provisions
of K.S.A. 9-2107, and amendments thereto, with commercial banks which
have offices located in the county or counties in which such investing
governmental unit is located. Public moneys invested under this paragraph
shall be secured in the same manner as provided for under K.S.A. 9-1402,
and amendments thereto. Investments of public moneys under this paragraph
shall be limited to those investments authorized under Subsection
(b) of Section 1 of the Municipal Investment Pool Fund Act.
(b) The investments authorized in Subsection (a)(5), (6), (7) or (8)
of this section shall be utilized only if the appropriate eligible
commercial banks, which have offices located in the investing governmental
unit or in the county or counties in which all or a part of such investing
governmental unit is located if no such bank has an office which is
located within such governmental unit, or the appropriate eligible
state or federally chartered savings and loan associations or federally
chartered savings banks, which have offices located in the investing
governmental unit or in the county or counties in which all or a part
of such investing governmental unit is located if no such state or
federally chartered savings and loan association or federally chartered
savings bank has an office which is located within such governmental
unit, cannot or will not make the investments authorized in Subsection
(a)(2) or (3) of this section available to the investing governmental
unit at interest rates equal to or greater than the investment rate,
as defined in Subsection (1) of K.S.A. 75-4201, and amendments thereto.
(K.S.A. 12-1675, as amended).
The City Treasurer shall periodically report to the governing
body as to the amount of moneys available for investment and the period
of time such amounts will be available for investment, and shall submit
such recommendations as deemed necessary for the efficient and safe
management of City finances. The recommendations of the City Treasurer
shall provide for an investment program which shall so limit the amounts
invested and schedule the maturities of investments so that the City
will at all times have sufficient moneys available m demand deposit
to assure prompt payment of all City obligations. The governing body
shall determine by resolution the amount, method and term of any investment
and the type of investment made, subject to the provisions of this
ordinance.
Securities purchased pursuant to this ordinance shall be under
the joint care of the City Clerk, City Treasurer and Mayor and shall
be held in the custody of a state or national bank or trust company,
or shall be kept by such officers in a safety deposit box of the City
in a bank or trust company. Securities in original or receipt form
held in the custody of a bank or trust company, shall be held in the
name of the City and their redemption, transfer or withdrawal shall
be permitted only upon the written instruction of at least two such
City officers. Securities not held in the custody of a bank or trust
company shall be personally deposited by such officers in a safety
deposit box in the name of the City in a bank or trust company, access
to which shall be permitted only in personal presence and under the
signature of at least two such officers.
If, in order to maintain sufficient moneys on demand deposit in any fund, as provided in Section
1-803 of this ordinance, it becomes necessary to transfer or sell any securities of such funds, any two or more of the officers specified in Section
1-804 my transfer said securities to any other fund or funds in which there are temporarily idle moneys, or shall sell such securities and for such purpose they shall have authority to make any necessary written directions, endorsements or assignments for and on behalf of the City. Any such transfers or sales shall be reported in writing to the governing body at its next regular meeting.
The interest or other earnings from investments made pursuant
to this ordinance shall be credited pro rata to the fund or funds
from which the investments were made and shall be used, insofar as
possible, to relieve the ad valorem tax levies of the City. The City
Treasurer shall maintain a complete and detailed record at all times
of all investments made pursuant to this ordinance.
Proceeds from the sale according to law of recovered, unclaimed,
or confiscated property shall be deposited in the general operating
fund of the City for use as authorized for those funds.