The city adopts this investment policy (the “investment policy”), which establishes the investment policy and goals of the city. The information has been prepared and will be used by the city council and staff as a guide in attaining the investment goals set forth in the investment policy and at the same time complying with the rules and regulations governing the investment of public funds.
(2002 Code, sec. 1.601)
(a) 
General fund.
An amount equal to two months' operating costs may be invested in a qualified money market fund to enable liquidity of funds necessary for the day-to-day operations of the city. Any other available funds will be invested as outlined in the selection of investments.
(b) 
Debt service fund.
The city's debt service requirements are typically payable in semiannual payments each year. Money in the debt service fund may be invested up to but not exceeding each semiannual debt service payment date.
(c) 
Construction fund.
All funds remaining in the construction fund will be invested as outlined in the selection of investments for periods of time consistent with the projected takedown schedule of such funds.
(d) 
Tax fund.
All tax moneys collected will be deposited initially into the tax fund and subsequently transferred to the respective fund as soon as possible and no later than two weeks.
(2002 Code, sec. 1.602)
The city's investment policy includes the following objectives: safety of capital, liquidity, diversification, and standard of care. In selecting investments for city funds, the following procedures shall be implemented:
(1) 
Safety of capital.
(A) 
Invest in securities which are backed by the full faith and credit of the United States government, such as U.S. treasury bills, etc.;
(B) 
Invest in securities which are agencies of the U.S. government, such as agency discount notes (Federal Farm Credit Bank, Federal Home Loan Bank Board, etc.);
(C) 
Obtain a certificate of collateralization for all funds in excess of $100,000.00 on deposit in a bank, savings and loan or other qualified financial institution; and
(D) 
Obtain all necessary certificates of deposit when investing in bank CDs.
(2) 
Liquidity.
Maintain an amount equal to two months' operating costs in a qualified money market fund for the use of day-to-day operating costs and select securities with maturity dates which ensure the timely availability of funds as discussed below.
(3) 
Diversification.
The city will maintain no more than twenty-five percent (25%) of the sum of all its funds in one investment such as TEXPOOL or other similar “pool” funds.
(2002 Code, sec. 1.603)
The city council/staff will complete the following steps in connection with investing city funds:
(1) 
Bids.
A minimum of three bids will be obtained from investment banking firms, an assortment of banks, savings and loans, or other qualified depositories on the current yield.
(2) 
Selection of investment.
After obtaining bids for investments, the investment which provides the highest yield and meets the other investment criteria of the city will be purchased.
(3) 
Length of investment.
Copies of the CD implied forward rates and U.S. treasury bill implied forward rates reports as published by Bloomberg will be obtained, which the staff will use as a guide in determining the length of investments. The funds will be invested for such lengths of time which ensure availability of funds to meet debt service requirements and the day-to-day operations of the city.
(2002 Code, sec. 1.604)