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HomeMy WebLinkAbout04-439 Investment Policy RESOLUTION NO. 04-~ BY: IIdt\. 8m:l.. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MERIDIAN, SETTING FORTH CERTAIN FINDINGS AND PURPOSES; PROVIDING FOR THE ADOPTION OF THE POLICY REGARDING INVESTMENTS FOR THE CITY OF MERIDIAN. WHEREAS, the Mayor and Council have the authority [pursuant to I.C. § 50- 302] to establish resolutions not inconsistent with the laws of the state ofIdaho as may be expedient, in addition to the special powers therein granted, to maintain the peace, good government and welfare of the corporation and its trade, commerce and industry; and WHEREAS, the Mayor and Council have deemed it expedient and in the best interests of the City of Meridian to adopt an Investment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL as follows: I. The investment policy would be under the jurisdiction of the Finance Department as authorized by Idaho Code 57-127, and said funds shall include: General Fund Park Impact Fund Fire Trunk Fund Capital Improvement Fund Enterprise Fund Special Service Fund 2. The Finance Department shall safeguard the City funds while providing adequate liquidity for the City's on-going operating needs. The investment objectives in order of priority shall be as follows: Safety Liquidity Yield 3. The investment policy shall comply by the Standards of Care provisions which are Prudence, Ethics and Conflict of Interest, and Delegation of Authority. 4. The investment policy shall comply and adhere to the Allowable Investment Vehicles per Idaho Code 50-lOB. 5. All brokers and dealers doing business with the City of Meridian must be registered with the State of Idaho Department of Finance and must adhere to Securities . and Exchanges Commission Rule 15C3-1. Non-bank broker/dealer firms and the individuals handling City accounts must be registered with the National Association of Securities Dealers (NASD). 6. The Finance Department shall prepare annual, quarterly, and monthly reports for the City Council's review, and said reports shall contain: percentage of investment total portfolio, percentage of portfolio each fund represents, monthly investment return rates, quarterly summary market conditions, annual realized and umealized gains and losses and amortized expense or income, annual average weighted yield to maturity, and annual listing of investments by maturity date. 7. EFFECTIVE DATE: This Resolution shall be in full force and effect immediately upon passage. ~tr:.\ PASSED BY THE COUNCIL OF THE CITY OF MERIDIAN, IDAHO, this ~ day of Aú~ ,2004. ':1J~ APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, IDAHO, this ~dayof--A.tgUJ:d- . ,2004. ATTEST: CITY OF MERIDIAN INVESTMENT POLICY SCOPE This investment policy applies to the investment activities of all funds under the jurisdiction of the City of Meridian Finance Department as authorized by Idaho Code 57- 127 and by City resolution. These funds include: General Fund Park Impact Fund Fire Truck Fund Capital Improvement Fund Enterprise Fund Special Service Fund. Employee Retirement Fund and any Employee Deferred Compensation Plans are specifically excluded from this policy. INVESTMENT OBJECTIVES The primary objective of the Finance Department is to safeguard City funds while providing adequate liquidity to meet the City's on-going operating needs. The investment objectives i~ order of priority are as follows; 1. Safety Investments will preserve the capital in the portfolio. Investments will be purchased that mitigate credit risk and interest rate interest. A. Credit Risk - will minimize the risk ofloss due to the failure of the security issuer or backer by limiting investments to those investments authorized by state law as detailed below. B. Interest Rate Risk- interest rate risk will be minimized by structuring the portfolio so it is not necessary to sell securities before maturity to meet cash requirements and by limiting the average maturity of this portfolio. 2. Liquidity The investment portfolio will remain liquid enough to meet the operating needs of the City. In addition to meeting anticipated daily needs of the City an amount of the portfolio will be available in money market or Idaho State Investment Pool funds that offer one day liquidity for unanticipated operating needs. 3. Yield The investment portfolio will be designed to obtain the highest yield possible under the constraints of safety, liquidity, and state regulation. STANDARDS OF CARE 1. Prudence The standard of prudence used by City Finance employees and any investment advisors contracted by the City shall be the "prudent person" standard. The "prudent person" standard states that "Investments shall be made with judgment 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." 2. Ethics and Conflict of Interest Employees, officials, and contractors involved in the investment process must refrain from personal business activity that could conflict with the proper management of the investment program or create an actual or perceived impairment of ability to make sound investment decisions. Employees, officials, and contractors shall disclose any personal financial or investment positions that could be related to the performance of the investment portfolio. 3. Delegation of Authority Authority to manage the investment portfolio is granted to the City Finance Director under the direction of the City Council. Any investment advisor contracted by the City to purchase investments is bound by this investment policy. ALLOWABLE INVESTMENT VEHICLES PER IDAHO cotE 50-1013 'I-- (a) Revenue bold issued by the revenue bond act (b) City coupon bonds provided for under section 50-1019, Idaho Code (c) Local improvement district bonds provided for under chapter 17, title 50, Idaho Code (d) Time deposit accounts with public depositories (e) Bonds, treasury bills, interest-bearing notes, or other obligations of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (1) General obligation bonds of any county, city, metropolitan water district, municipal utility district, school district or other taxing district of this state. (g) Notes, bond, debentures, or other similar obligation issued by the farm credit system or institutions forming a part thereof under the farm credit act of 1971 (12 U.S.C sections 2001-2259) and all acts of congress amendatory thereof or supplementary thereto; in bonds or dentures of the federal home loan bank board established under the federal home loan bank act (12 U.S.C sections 1421-1449) ; in bonds, debentures and other obligations of the federàJ. national mortgage association established under the national housing act (12 U.S.C. Sections 1701-1750g) as amended, and in the bonds of any federal home loan bank established under said act and in other obligations of agencies and instrumentalities of the government of the state ofIdaho or of the United States. i. Bonds, notes or other similar obligations issued by public corporations of the state ofIdaho including, but not limited to, the Idaho state building authority, the Idaho housing authority and the Idaho resource board, but such investment shall not exceed beyond seven (7) days. j. Repurchase agreements and reverse repurchase agreements covered by any legal investment for the state of Idaho or as otherwise allowed by this section, provided that reverse repurchase agreements shall only be used for the purpose of liquidity and not for leverage or speculation. k. Tax anticipation bonds or notes, income and revenue anticipation bonds or notes and registered warrants of the state of Idaho or of taxing districts of the state of Idaho. (1) Savings accounts including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (m) Time deposit accounts and other savings accounts of state or federal savings and loan associations located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the federal savings and loan corporation, including but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (n) Share, savings and deposit accounts of state and federal credit unions located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the national credit union share insurance fund and/or any other authorized share guarat).ty corporation, including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (0) Prime banker's acceptances (P) Prime commercial paper (q) Money market funds, mutual funds, or any other similar funds whose portfolios consist of any allowed investment as specified in this section. (r) Bonds, debentures or notes of any corporation organized, controlled and operating within the United States which have at the time of their purchase, an A rating or higher by a commonly lmown rating service. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS All brokers and dealers doing business with the City of Meridian must be registered with the State ofIdaho Department of Finance and must adhere to Securities and Exchanges Commission Rule 15C3-l (uniform net capital rule). Non-bank broker/dealer firms and the individuals handling the City's account must be registered with the National Association of Securities Dealers (NASD). INTERNAL CONTROL The City Finance Department is responsible for establishing and maintaining an internal control structure designed to protect the City from loss of public funds due to fraud, error, or actions inconsistent with the requirements the laws governing allowable public entity investments. The City will require an annual independent audit to include reviews of the investment internal controls as necessary to issue an opinion on the financial statements as a whole. REPORTING The Finance Department will prepare annual, quarterly, and monthly reports for Council containing: . Percentage of the total portfolio each type of investment represents. . The percentage of the portfolio each fund represents. . Monthly rate of investment return for each type of investment. . Quarterly summary of market conditions. . Annual realized and unrealized gains and losses on in market value and amortized expense or income from amortization of bond premiums and discounts. . Annually average weighted yield to maturity. .. Annually listing of investments by maturity date. CERTIFICATE OF CLERK OF THE CITY OF MERIDIAN I, the undersigned, do hereby certifY: I. That I am the duly appointed and elected Clerk of the City of Meridian, a duly incorporated City operating under the laws of the State of Idaho, with its principal office at 33 East Idaho, Meridian, Idaho. 2. That as the City Clerk of this City, I am the custodian of its records and minutes and do hereby certifY that on the ~ day of /luJ'".r1- ,2004, the following action has been taken and authorized. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MERIDIAN, SETTING FORTH CERTAIN FINDINGS AND PURPOSES; PROVIDING FOR THE ADOPTION OF THE POLICY REGARDING INVESTMENTS FOR THE CITY OF MERIDIAN. WHEREAS, the Mayor and Council have the authority [pursuant to I.C. § 50-302] to establish resolutions not inconsistent with the laws of the state ofIdaho as may be expedient, in addition to the special powers therein granted, to maintain the peace, good government and welfare of the corporation and its trade, commerce and industry; and WHEREAS, the Mayor and Council have deemed it expedient and in the best interests of the City of Meridian to adopt an Investment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL as follows: 1. The investment policy would be under the jurisdiction of the Finance Department as authorized by Idaho Code 57-127, and said funds shall include: General Fund Park Impact Fund Fire Trunk Fund Capital Improvement Fund Enterprise Fund Special Service Fund 2. The Finance Department shall safeguard the City funds while providing adequate liquidity for the City's on-going operating needs. The investment objectives in order of priority shall be as follows: Safety Liquidity Yield 3. The investment policy shall comply by the Standards of Care provisions which are Prudence, Ethics and Conflict ofInterest, and Delegation of Authority. 4. The investment policy shall comply and adhere to the Allowable Investment Vehicles per Idaho Code 50-1013. 5. All brokers and dealers doing business with the City of Meridian must be registered with the State of Idaho Department of Finance and must adhere to Securities and Exchanges Commission Rule 15C3-1. Non-bank broker/dealer firms and the individuals handling City accounts must be registered with the National Association of Securities Dealers (NASD). 6. The Finance Department shall prepare annual, quarterly, and monthly reports for the City Council's review, and said reports shall contain: percentage of investment total portfolio, percentage of portfolio each fund represents, monthly investment return rates, quarterly summary market conditions, annual realized and umealized gains and losses and amortized expense or income, annual average weighted yield to maturity, and annual listing of investments by maturity date. . 7. EFFECTIVE DATE: immediately upon passage. : ss: STATE OF IDAHO, County of Ada, On this "3rJ day of A..t~a.>+ , in the year 2004, before me a Notary Public, appeared WILLIAM G. BERG, JR., known 0 IdenTIfied to me to be the CIty Clerk of the CIty of Meridian, Idaho, that executed the said instrument, and acknowledged to me that he executed the same on behalf of the CitY ¡>¿ Meridian. ...,.'" "'" ,~~\CB L. .r'::..'" ~# ..."'; ",-7; '" I' "\" " (SEAl>* ltOT<4.t)- ..'Ø- "\ No ub c for Idaho ! -.- ¡ * i Co miss' nExpires: DI./l?.of 07 \ fP. .þ(¡BL:;¿C ¡¡ f- \" ¡ '10« ., t: "" 4J.~ Z:\WOrk~~~,.---esolutions City HaJI\2004\Cert ClkInvestmentPolicy 0712 04.dœ .,........." CITY OF MERIDIAN INVESTMENT POLICY SCOPE This investment policy applies to the investment activities of all funds under the jurisdiction of the City of Meridian Finance Department as authorized by Idaho Code 57- 127 and by City resolution. These funds include: General Fund Park Impact Fund Fire Truck Fund Capital Improvement Fund Enterprise Fund Special Service Fund. Employee Retirement Fund and any Employee Deferred Compensation Plans are specifically excluded from this policy. INVES TMENT OBJECTIVES The primary objective of the Finance Department is to safeguard City funds while providing adequate liquidity to meet the City's on-going operating needs. The investment objectives i~ order of priority are as follows; 1. Safety Investments will preserve the capital in the portfolio. Investments will be purchased that mitigate credit risk and interest rate interest. A. Credit Risk - will minimize the risk of loss due to the failure of the security issuer or backer by limiting investments to those investments authorized by state law as detailed below. B. Interest Rate Risk- interest rate risk will be minimized by structuring the portfolio so it is not necessary to sell securities before maturity to meet cash requirements and by limiting the average maturity ofthis portfolio. 2. Liquidity The investment portfolio will remain liquid enough to meet the operating needs of the City. In addition to meeting anticipated daily needs of the City an amount of the portfolio will be available in money market or Idaho State Investment Pool funds that offer one day liquidity for unanticipated operating needs. 3. Yield The investment portfolio will be designed to obtain the highest yield possible under the constraints of safety, liquidity, and state regulation. STANDARDS OF CARE 1. Prudence The standard of prudence used by City Finance employees and any investment advisors contracted by the City shall be the "prudent person" standard. The "prudent person" standard states that "Investments shall be made with judgment 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." 2. Ethics and Conflict of Interest Employees, officials, and contractors involved in the investment process must refrain from personal business activity that could conflict with the proper management of the investment program or create an actual or perceived impairment of ability to make sound investment decisions. Employees, officials, and contractors shall disclose any personal financial or investment positions that could be related to the performance of the investment portfolio. 3. Delegation of Authority Authority to manage the investment portfolio is granted to the City Finance Director under the direction of the City Council. Any investment advisor contracted by the City to purchase investments is bound by this investment policy. ALLOWABLE INVESTMENT VEHICLES PER IDAHO cotE 50-1013 'I-- (a) Revenue bold issued by the revenue bond act (b) City coupon bonds provided for under section 50-1019, Idaho Code (c) Local improvement district bonds provided for under chapter 17, title 50, Idaho Code (d) Time deposit accounts with public depositories (e) Bonds, treasury bills, interest-bearing notes, or other obligations of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (1) General obligation bonds of any county, city, metropolitan water district, municipal utility district, school district or other taxing district of this state. (g) Notes, bond, debentures, or other similar obligation issued by the farm credit system or institutions forming a part thereof under the farm credit act of 1971 (12 U.S.C sections 2001-2259) and all acts of congress amendatory thereof or supplementary thereto; in bonds or dentures of the federal home loan bank board established under the federal home loan bank act (12 U.S.C sections 1421-1449) ; in bonds, debentures and other obligations of the federal national mortgage association established under the national housing act (12 U.S.C. Sections 1701-1750g) as amended, and in the bonds of any federal home loan bank established under said act and in other obligations of agencies and instrumentalities of the government of the state ofIdaho or of the United States. i. Bonds, notes or other similar obligations issued by public corporations of the state ofIdaho including, but not limited to, the Idaho state building authority, the Idaho housing authority and the Idaho resource board, but such investment shall not exceed beyond seven (7) days. j. Repurchase agreements and reverse repurchase agreements covered by any legal investment for the state of Idaho or as otherwise allowed by this section, provided that reverse repurchase agreements shall only be used for the purpose ofliquidity and not for leverage or speculation. k. Tax anticipation bonds or notes, income and revenue anticipation bonds or notes and registered warrants of the state ofIdaho or of taxing districts of the state ofIdaho. (1) Savings accounts including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (m) Time deposit accounts and other savings accounts of state or federal savings and loan associations located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the federal savings and loan corporation, including but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (n) Share, savings and deposit accounts of state and federal credit unions located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the national credit union share insurance fund and/or any other authorized share guar~ty corporation, including, but not limited to, accounts on which interest or dividends arc paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. RESOLUTION NO. 04-~ BY: 1Idt\. 81reL A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MERIDIAN, SETTING FORTH CERTAIN FINDINGS AND PURPOSES; PROVIDING FOR THE ADOPTION OF THE POLICY REGARDING INVESTMENTS FOR THE CITY OF MERIDIAN. WHEREAS, the Mayor and Council have the authority [pursuant to I.C. § 50- 302] to establish resolutions not inconsistent with the laws of the state of Idaho as may be expedient, in addition to the special powers therein granted, to maintain the peace, good government and welfare of the corporation and its trade, commerce and industry; and WHEREAS, the Mayor and Council have deemed it expedient and in the best interests of the City of Meridian to adopt an Investment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL as follows: 1. The investment policy would be under the jurisdiction of the Finance Department as authorized by Idaho Code 57-127, and said funds shall include: General Fund Park Impact Fund Fire Trunk Fund Capital Improvement Fund Enterprise Fund Special Service Fund 2. The Finance Department shall safeguard the City funds while providing adequate liquidity for the City's on-going operating needs. The investment objectives in order of priority shall be as follows: Safety Liquidity Yield 3. The investment policy shall comply by the Standards of Care provisions which are Prudence, Ethics and Conflict ofInterest, and Delegation of Authority. 4. The investment policy shall comply and adhere to the Allowable Investment Vehicles per Idaho Code 50-1013. 5. All brokers and dealers doing business with the City of Meridian must be registered with the State of Idaho Department of Finance and must adhere to Securities and Exchanges Commission Rule 15C3-1. Non-bank broker/dealer firms and the individuals handling City accounts must be registered with the National Association of Securities Dealers (NASD). 6. The Finance Department shall prepare annual, quarterly, and monthly reports for the City Council's review, and said reports shall contain: percentage of investment total portfolio, percentage of portfolio each fund represents, monthly investment return rates, quarterly summary market conditions, annual realized and umealized gains and losses and amortized expense or income, annual average weighted yield to maturity, and annual listing of investments by maturity date. 7. EFFECTIVE DATE: This Resolution shall be in full force and effect immediately upon passage. ~ rr.I PASSED BY THE COUNCIL OF THE CITY OF MERIDIAN, IDAHO, this ~dayof Aú~ ,2004. "lro\ APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, IDAHO, this ~ day of --A.tg uJ:d- , 2004. ATTEST: CITY OF MERIDIAN INVESTMENT POLICY SCOPE This investment policy applies to the investment activities of all funds under the jurisdiction of the City of Meridian Finance Department as authorized by Idaho Code 57- 127 and by City resolution. These funds include: General Fund Park Impact Fund Fire Truck Fund Capital Improvement Fund Enterprise Fund Special Service Fund. Employee Retirement Fund and any Employee Deferred Compensation Plans are specifically excluded from this policy. INVESTMENT OBJECTIVES The primary objective of the Finance Department is to safeguard City funds while providing adequate liquidity to meet the City's on-going operating needs. The investment objectives ~ order of priority are as follows; 1. Safety Investments will preserve the capital in the portfolio. Investments will be purchased that mitigate credit risk and interest rate interest. A. Credit Risk - will minimize the risk ofloss due to the failure of the security issuer or backer by limiting investments to those investments authorized by state law as detailed below. B. Interest Rate Risk- interest rate risk will be minimized by structuring the portfolio so it is not necessary to sell securities before maturity to meet cash requirements and by limiting the average maturity ofthis portfolio. 2. Liquidity The investment portfolio will remain liquid enough to meet the operating needs of the City. In addition to meeting anticipated daily needs of the City an amount of the portfolio will be available in money market or Idaho State Investment Pool funds that offer one day liquidity for unanticipated operating needs. 3. Yield The investment portfolio will be designed to obtain the highest yield possible under the constraints of safety, liquidity, and state regulation. STANDARDS OF CARE 1. Prudence The standard of prudence used by City Finance employees and any investment advisors contracted by the City shall be the "prudent person" standard. The "prudent person" standard states that "Investments shall be made with judgment 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." 2. Ethics and Conflict of Interest Employees, officials, and contractors involved in the investment process must refrain from personal business activity that could conflict with the proper management of the investment program or create an actual or perceived impairment of ability to make sound investment decisions. Employees, officials, and contractors shall disclose any personal financial or investment positions that. could be related to the performance of the investment portfolio. 3. Delegation of Authority Authority to. manage the investment portfolio is granted to the City Finance Director under the direction of the City Council. Any investment advisor contracted by the City to purchase investments is bound by this investment policy. ALLOWABLE INVESTMENT VEHICLES PER IDAHO cotE 50-1013 'I-- (a) Revenue bold issued by the revenue bond act (b) City coupon bonds provided for under section 50-1019, Idaho Code (c) Local improvement district bonds provided for under chapter 17, title 50, Idaho Code (d) Time deposit accounts with public depositories (e) Bonds, treasury bills, interest-bearing notes, or other obligations of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (1) General obligation bonds of any county, city, metropolitan water district, municipal utility district, school district or other taxing district of this state. (g) Notes, bond, debentures, or other similar obligation issued by the farm credit system or institutions forming a part thereof under the farm credit act of 1971 (12 U.S.C sections 2001-2259) and all acts of congress amendatory thereof or supplementary thereto; in bonds or dentures of the federal home loan bank board established under the federal home loan bank act (12 U.S.C sections 1421-1449); in bonds, debentures and other obligations of the federal national mortgage association established under the national housing act (12 U.S.C. Sections 1701-1750g) as amended, and in the bonds of any federal home loan bank established under said act and in other obligations of agencies and instrumentalities of the government of the state ofIdaho or of the United States. i. Bonds, notes or other similar obligations issued by public corporations of the state ofIdaho including, but not limited to, the Idaho state building authority, the Idaho housing authority and the Idaho resource board, but such investment shall not exceed beyond seven (7) days. j. Repurchase agreements and reverse repurchase agreements covered by any legal investment for the state of Idaho or as otherwise allowed by this section, provided that reverse repurchase agreements shall only be used for the purpose of liquidity and not for leverage or speculation. k. Tax anticipation bonds or notes, income and revenue anticipation bonds or notes and registered warrants of the state of Idaho or of taxing districts of the state of Idaho. (1) Savings accounts including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (m) Time deposit accounts and other savings accounts of state or federal savings and loan associations located within the geographical boundaries of the state in amounts not to exceed the insurance provided by the federal savings and loan corporation, including but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (n) Share, savings and deposit accounts of state and federal credit unions located within the geographical boundaries ofthe state in amounts not to exceed the insurance provided by the national credit union share insurance fund and/or any other authorized share guarat).ty corporation, including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. (0) Prime banker's acceptances (P) Prime commercial paper (q) Money market funds, mutual funds, or any other similar funds whose portfolios consist of any allowed investment as specified in this section. (r) Bonds, debentures or notes of any corporation organized, controlled and operating within the United States which have at the time of their purchase, an A rating or higher by a commonly lmown rating service. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS All brokers and dealers doing business with the City of Meridian must be registered with the State ofIdaho Department of Finance and must adhere to Securities and Exchanges Commission Rule 15C3-1 (uniform net capital rule). Non-bank broker/dealer firms and the individuals handling the City's account must be registered with the National Association of Securities Dealers (NASD). INTERNAL CONTROL The City Finance Department is responsible for establishing and maintaining an internal control structure designed to protect the City from loss of public funds due to fraud, error, or actions inconsistent with the requirements the laws governing allowable public entity investments. The City will require an annual independent audit to include reviews of the investment internal controls as necessary to issue an opinion on the financial statements as a whole. REPORTING The FinanceDepartmentwill prepare annual, quarterly, and montWy reports for Council containing: . Percentage of the total portfolio each type of investment represents. . The percentage of the portfolio each fund represents. . Monthly rate of investment return for each type of investment. . Quarterly summary of market conditions. . Annual realized and unrealized gains and losses on in market value and amortized expense or income from amortization of bond premiums and discounts. . Annually average weighted yield to maturity. . Annually listing of investments by maturity date. CERTIFICATE OF CLERK OF THE CITY OF MERIDIAN I, the undersigned, do hereby certify: I. That I am the duly appointed and elected Clerk of the City of Meridian, a duly incorporated City operating under the laws of the State ofIdaho, with its principal office at 33 East Idaho, Meridian, Idaho. 2. That as the City Clerk of this City, I am the custodian of its records and minutes and do hereby certify that on the ~ day of ~.r I- , 2004, the following action has been taken and authorized. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MERIDIAN, SETTING FORTH CERTAIN FINDINGS AND PURPOSES; PROVIDING FOR THE ADOPTION OF THE POLICY REGARDING INVESTMENTS FOR THE CITY OF MERIDIAN. WHEREAS, the Mayor and Council have the authority [pursuant to I.C. § 50-302] to establish resolutions not inconsistent with the laws of the state of Idaho as may be expedient, in addition to the special powers therein granted, to maintain the peace, good government and welfare of the corporation and its trade, commerce and industry; and WHEREAS, the Mayor and Council have deemed it expedient and in the best interests of the City of Meridian to adopt an Investment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL as follows: I. The investment policy would be under the jurisdiction of the Finance Department as authorized by Idaho Code 57-127, and said funds shall include: General Fund Park Impact Fund Fire Trunk Fund Capital Improvement Fund Enterprise Fund Special Service Fund 2. The Finance Department shall safeguard the City funds while providing adequate liquidity for the City's on-going operating needs. The investment objectives in order of priority shall be as follows: Safety Liquidity Yield 3. The investment policy shall comply by the Standards of Care provisions which are Prudence, Ethics and Conflict ofInterest, and Delegation of Authority. 4. The investment policy shall comply and adhere to the Allowable Investment Vehicles per Idaho Code 50-1013. 5. All brokers and dealers doing business with the City of Meridian must be registered with the State of Idaho Department of Finance and must adhere to Securities and Exchanges Commission Rule 15C3-1. Non-bank broker/dealer firms and the individuals handling City accounts must be registered with the National Association of Securities Dealers (NASD). 6. The Finance Department shall prepare annual, quarterly, and monthly reports for the City Council's review, and said reports shall contain: percentage of investment total portfolio, percentage of portfolio each fund represents, monthly investment return rates, quarterly summary market conditions, annual realized and umealized gains and losses and amortized expense or income, annual average weighted yield to maturity, and annual listing of investments by maturity date. 7. EFFECTIVE DATE: immediately upon passage. : ss: STATE OF IDAHO, County of Ada, On this 3rt day of Aw.....+ , in the year 2004, before me a Notary Public, appeared WILLIAM G. BERG, JR., kno~ J1. identified to me to be the City Clerk of the City of Meridian, Idaho, that executed the said instrument, and acknowledged to me that he executed the same on behalf of the Ci~ ~\Meridian. ilr;~~CB iZ~~ . ~J- : It°T,4 00 ø ~ (SEAi)JI- 1tJ.- \ : Not ub c for Idaho i J> -:;¿,¡. § Co miss' n Expires: D'I I~o( 07 ~ <p. (rauC : ~~ I \ '111 .".0 %~ Z:\WOrk~~'~..,..,\ReSOlUtions City Hall\2004'Cert Clk InvestmenlPolicy 07 12 04.dœ ""m..""