res_11252 - Laserfiche WebLink

Home

Portfolio Mana eg ment Under the Council-adopted Fiscal Policies, it shall be the City's procedure to restrict investinents to only Repurchase Agreements with national or state chartered banlcs, U.S. Treasury and U.S. Government Agencies, Guaranteed Investment Contracts, and Bankers Acceptances. All investments shall carry a minimum credit rating of `AA'. An exception to these restrictions is permitted with regard to the investment of proceeds received from the 2011 and 2012 bonds due to extenuating economic circumstances and their effect on financial institutions. Repurchase Agreements associated with the bonds can be placed with any bank; banlc holding company, savings and loan association, trust company or other financial institution including the trustee or any of its affiliates, The financial institution shall carry a credit rating of `A' or better, and is required to pledge collateral from national or state chartered banks. The procedures shall consist of yield curve analysis and implemented with the appropriate purchase of the above investinents. Maturity scheduling shall be within those investments and in a manner that will maximize yield and liquidity and minimize interest rate risk. Competitive Selection of Investment Instruments Before the City invests any surplus funds, a competitive "bid" process shall be conducted. If a specific maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids will be requested for instruments that meet the maturity requirement. If no specific maturity is re- quired, a inarket trend (yield curve) analysis will be conducted to deter�nine which maturities would be most advantageous. Bids will be requested from financial institutions for various options with regards to term and instrument. The City will accept the bid that provides the highest rate of return within the maturity required and within the parameters of these procedures. Bids for purchases through the treasury auctions are not required. Records will be kept of the bids offered, the bids accepted and a brief explanation of the decision that was made regarding the investment. Settlement All settlements of investments shall be on a"Delivery vs. Payment" (DVP) basis. Physical delivery shall be avoided if at all possible, with book entry being the preferred method of safekeeping. Safekeeping and Collateralization All investment securities purchased by the City shall be held in third-party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information. Reporting Requireinents The investment officer shall generate daily and monthly reports for management purposes. The annual investment report shall be completed on a time weighted basis and shall be included as part of the Comprehensive Annual Financial Report to the City Council. The target portfolio shall be the U.S. Government Bond Yield Index for the comparable period.