HomeMy WebLinkAboutResolution 2001-24 i
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RESOLUTION NO. 2001-24
IE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE
CANAVERAL, BREVARD COUNTY, FLORIDA, ESTABLISHING
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
i 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
I 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.
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WHEREAS, LIQUIDITY of funds sufficient to enable the City to meet all
4 operating requirements which might be reasonably anticipated, and
j 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
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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 internal controls and operating procedures to be followed in the administration
of these funds. No person may engage in an investment transaction except as provided
I under the terms of this policy and the procedures established by the City Treasurer and
I I 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
employees. The required annual financial audit shall include a review of such intemal
I controls.
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City of Cape Canaveral, Florida
Resolution No 01 -24
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Page 2
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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
I 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
I 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
I 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
1 rates subject to the limitations of Section 218.415:
The Local Govemment Surplus Funds Trust Fund (State Board of Administration —
I SBA)
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
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 instrumentality's
The transfer of funds for investments by Federal Reserve Wire System or by check is
j hereby authorized.
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I j 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.
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City of Cape Canaveral, Florida
Resolution No. 01 -24
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1 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 18th day
of September, 2001.
C. : L
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Rocky Randels, MAYOR
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ATTEST: FOR AGAINST
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Burt Bruns X
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Susan Stills, CITY CLERK Buzz Petsos Second
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Rocky Randels X
Richard Treverton X
APPROVED AS TO FO' I ' .
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1 Larry Weber Motion
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K o n Benne , ' ATTORNEY
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