HomeMy WebLinkAboutResolution 2002-25 RESOLUTION NO 2002-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE
CANAVERAL, BREVARD COUNTY, FLORIDA, AMENDING POLICIES
FOR THE CITY FUNDS TO BE INVESTED; PROVIDING A CUSTODIAN
OF FUNDS; PROVIDING FOR THE SELECTION OF INVESTMENTS;
AUTHORIZING FOR THE TRANSFER OF FUNDS; PROVIDING FOR
REPORTING OF INVESTMENTS HELD; PROVIDING FOR PRORATION
OF EARNINGS AND CHANGES IN VALUE; PROVIDING FOR THE
EXCLUSION OF RETIREMENT PLAN; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Cape Canaveral declares its intent to
establish a policy for surplus City Funds, as defined in Florida Statutes Section
218.403(3), to be invested to provide:
WHEREAS, SAFETY OF CAPITAL which is the foremost objective of the
investment program. Investments of the City of Cape Canaveral shall be undertaken in
a manner that seeks to ensure the preservation of capital in the overall portfolio.
WHEREAS, LIQUIDITY of funds sufficient to enable the City to meet all
operating requirements which might be reasonably anticipated, and
WHEREAS, INVESTMENT INCOME at a rate of return throughout budgetary
and economic cycles, commensurate with the investment risk constraints and the cash
flow characteristics of the portfolio.
BE IT RESOLVED by the City Council of the City of Cape Canaveral, Brevard
County, Florida, as follows:
These objectives shall be held in the order of importance, as listed above, as authorized
in Florida Statutes section 218.415. These invested funds are accounted for in the
City's Comprehensive Annual Financial Report and are reflected in the following funds:
General Fund, Special Revenue Funds, Capital Expansion Fund, and Enterprise Fund.
THE PRUDENT PERSON RULE:
"Investments shall be made with judgement and care — under circumstances then
prevailing — which persons of prudent discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, while
considering the probable safety of their capital as well as the probable income to be
delivered from the investment."
The City Treasurer and the City Manager shall be charged with the responsibility of
supervising all administrative matters relating to this Policy and shall establish a written
system of intemal controls and operating procedures to be followed in the administration
of these funds. No person may engage in an investment transaction except as provided
under the terms of this policy and the procedures established by the City Treasurer and
the City Manager. Internal controls shall be designed to prevent the loss of funds by
fraud, employee error, misrepresentations by third parties, or imprudent actions by City
AF ,
%iv employees. The required annual financial audit shall include a review of such intemal
controls.
City of Cape Canaveral, Florida
Resolution No. 2002-25
Page 2
The standard of prudence to be used by the City Treasurer and the City Manager or
their designee shall be the "prudent person" standard and shall be applied in the context
of managing an overall portfolio. The City Treasurer and the City Manager, acting in
accordance with written procedures and the investment policy and exercising due
diligence, shall be relieved of personal responsibility for individual security's credit risk
or market price changes, provided deviations from expectations are reported in a timely
fashion and appropriate action is taken to control adverse developments. Officers and
employees involved in the investment process shall refrain from personal business
activity that could conflict with proper execution of the investment program, or which
could impair their ability to make impartial investment decisions. Employees and
investment officials, including the City Treasurer and City Manager shall disclose to the
City Clerk any material financial interests in financial institutions that conduct business
within this jurisdiction, and they shall further disclose any large personal
financial/investment positions that could be related to the performance of the City of
Cape Canaveral, particularly with regard to the time of purchases and sales of
investments.
The City Treasurer and/or any other persons designated to initiate investment activities
shall annually complete (8) hours of continuing education in subjects or courses of study
related to investment practices and products.
The City of Cape Canaveral is empowered by statute to invest in the following
instruments, and may divest itself of such investments, at prevailing market prices or
rates subject to the limitations of Section 218.415:
The Local Govemment Surplus Funds Trust Fund (State Board of Administration —
SBA) or anv intergovernmental investment pool authorized pursuant to the Florida
Interlocal Cooperation Act as provided in s, 163.01.
Securities of, or other interests in anv open-end or closed-end management-tvpe
investment company or investment trust registered under the Investment Company Act
of 1940, 15 U.S.C. ss. 80a-1 et sea_ as amended from time to time, provided that the
portfolio Of such investment company or investment trust is limited to obligations of the
United States Govemment or anv agency or instrumentality thereof and to repurchase
agreements fully collateralized bv such United States Govemment obligations, and
provided that such investment company or investment trust takes delivery of such
collateral either directly or through an authorized custodian.
Securities and Exchange Commission registered money market funds with the highest
credit quality rating (AAA/AA) from a nationally recognized rating agency
Interest-bearing time deposits or savings accounts in qualified public depositories as
defined in Florida Statutes Section 280.02
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City of Cape Canaveral, Florida
Resolution No. 2002-25
Page 3
Certificates of Deposit and Repurchase Agreements in state-certified qualified public
depositories, as defined in Florida Statutes Section 280.02
Direct obligations of the U.S. Treasury.
Federal agencies and instrumentalities.
The transfer of funds for investments by Federal Reserve Wire System or by check is
hereby authorized.
The City Treasurer shall submit a monthly report on investment activity to the City
Council and City Manager and shall immediately notify the City Manager of any
deviations from currently approved investment policies.
Changes in value of investments shall be market-to-market in accordance with
Generally Accepted Accounting Principles and recorded on a monthly basis.
Investment earnings and changes in the value of securities shall be allocated based on
the amounts contributed by each fund.
This Resolution shall in no way affect pension funds that are administered by separate
resolution or bond funds where there are other existing policies or indentures in effect.
This Resolution shall take effect immediately upon adoption.
ADOPTED BY the City Council of the City of Cape Canaveral, Florida, this 16th day
of July, 2002. CiacY.x\
,
Rocky Randels, MAYOR
ATTEST: FOR AGAINST
_ Jim Morgan Motion
c= til CITY Buzz Petsos X
Rocky Randels X
Richard Treverton X
APPROVED AS TO FORM:
Larry Weber Second
"" C ord, CI — ORNEY
Wape-nt1cityderkiCityClk\Resolutionanvestme1t Policy-Amended 2002-25.doc