HomeMy WebLinkAboutORD 1897BILL NO. 7
ORDINANCE NO. 1897
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AN ORDINANCE FOR THE CITY OF CALDWELL, A MUNICIPAL CORPORATION OF
IDAHO, AMENDING TITLE I. BY ADDING A NEW CHAPTER 25, SECTIONS 1
THROUGH 7, CREATING AN INVESTMENT POLICY: PERTAINING TO CREATION,
PURPOSE, INVESTMENT OF IDLE FUNDS, SUPERVISION OF INVESTMENT, GOALS
AND OBJECTIVES - PRUDENT INVESTOR RULE, SELECTION OF FINANCIAL
INSTITUTIONS AND DEALERS, AND SAFEKEEPING AND CUSTODY: REPEALING
ALL ORDINANCES, RESOLUTION, ORDERS AND PARTS THEREOF IN CONFLICT
HEREWITH.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
CALDWELL, COUNTY OF CANYON, STATE OF IDAHO:
Section 1. That the municipal code of the City of Caldwell be
amended to add a new Chapter 25, Title I, Section 1 through 7,
establishing an Investment Policy as follows:
1 -25 -1: CREATION: The Council hereby establishes and adopts an
Investment Policy for the City of Caldwell. The authority and
responsibility of the investment staff and the Council Finance
Committee are therein designated and are incorporated herein
by reference:
1 -25 -2: PURPOSE: The purpose of the investment policy is to
establish the City's investment scope, objectives, delegation
of authority, standards of prudence, reporting requirements,
internal controls, eligible investment, selection of financial
institutions and dealers, portfolio maturities and volatility,
diversification, risk, and safekeeping and custody
requirements. Amendments to the policy may be made by the
Council Finance Committee after consultation with the City
Council. The policies and procedures of the City Treasury and
Finance Department shall also comply with the Investment
Policy as well as the Idaho Code and GAAP.
1 -25 -3: INVESTMENT OF IDLE FUNDS: The Treasurer and /or those
person(s ) assigned by the Treasurer shall invest money only in
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those investment instruments allowed by Idaho Code 50 -1013.
1 -25 -4: SUPERVISION OF INVESTMENT: Such investment shall be made
by the Treasurer, and /or those person(s) assigned by the
Treasurer, under the supervision of and upon the approval and
direction of the Council Investment Committee in accordance
with the City's Investment Policy.
1 -25 -5: GOALS AND OBJECTIVES - PRUDENT INVESTOR RULE:
A. The primary goal of the City of Caldwell investment portfolio
is to maximize return on idle cash while ensuring the safety
of the invested principal and providing for adequate liquidity
to meet the purpose for which that fund was created.
B. The City of Caldwell Treasury shall strive to maintain a
reasonable level of diversification both as to investment
types and institutions with which funds are invested.
C. Investments shall be made with the exercise of that judgement
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.
1 -25 -6: SELECTION OF FINANCIAL INSTITUTIONS AND DEALERS: The City's
depository shall be selected through competitive bidding in
accordance with the city's financial policies. When selecting
the depository, the credit worthiness of the institution shall
be considered.
It shall be the policy of the city to purchase securities only
from those financial institutions included in the City's
approved list of broker /dealers or banks. (Caldwell City Code
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1 -19 -1)
Before accepting funds or engaging in investment transactions
with the City, the supervising officer at each depository and
each recognized broker /dealer shall submit a certificate
acknowledging he or she has reviewed the investment policies
and objectives and agrees to disclose potential conflicts or
risks to public funds that might occur as a result of business
transactions between the firm /depository and the City.
1 -25 -7: SAFEKEEPING AND CUSTODY: Investments of the City shall be
held by a third -party custodian bank or a branch of the
Federal Reserve. Investment officials shall be bonded to
protect the public against possible embezzlement and fraud.
Collateralized securities such as repo's may be purchased
using the delivery -vs- payment procedure. Written safekeeping
procedures shall be established and reviewed annually by an
independent auditor.
Section 2. All ordinances or parts of ordinances inconsistent
herewith are hereby repealed.
Section 3. This ordinance shall be in full force and effect
from and after its passage, approval, and publication according to
law.
PASSED BY THE CITY COUNCIL of the City of Caldwell this 6th
day of May , 1991.
APPROVED BY THE MAYOR of the City of Caldwell this 6th day
of May , 1991.
ATTEST:
City Clerk �
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