Ordinance 2083-95 - Laserfiche WebLink

• • • 9.0 Collateralization. Collateralization will be on repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest. 9.1 The city chooses to limit collateral to the obligations of the United States Government and its agencies. 9.2 Collateral will always be held by an independent third party with whom the city has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the city and retained. 9.3 The right of collateral substitution is granted. 10.0 Safekeeping and Custody. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the City Investment Committee and evidenced by safekeeping receipts. 11.0 Diversification. The City will diversify its investments by security type and institution. With the exception of U.S. Treasury, no more than 50% of the City's total investment portfolio will be invested in a single security type and no more than 25% will be invested with a single financial institution. 12.0 Maximum Maturities. To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements, holding investments to maturity whenever possible. The City will not directly invest in securities maturing more than 5 years from the date of purchase. The average maturity will be consistent with the liquidity objective. However, the City may collateralize its repurchase agreements using longer-dated investments not to exceed 10 years to maturity. 13.0 Internal Control. The City Investment Committee shall establish a system of internal controls, which shall be reviewed annually by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 14.0 Performance Standards. The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs.