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HomeMy WebLinkAbout2009-109-12/01/2009-APPROVING A SECURITIES LENDING PROGRAM AS PART OF THE CITYS INVESTMENT POLICY RESOLUTION 2009-109 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING A SECURITIES LENDING PROGRAM AS PART OF THE CITY'S INVESTMENT POLICY WHEREAS,Article V, Section 12 of the City Charter states that the cash balance of the City shall be deposited or invested in a manner approved by the City Council; and WHEREAS, the types of securities in which City funds may be invested have been established in Ordinance No. 108, 1988 and amended by Ordinance No. 090, 1993; and WHEREAS, City Council adopted Resolution 1990-044 authorizing a Cash Management and Investment Policy that established guidelines and limitations to be followed by City staff in managing the investment of City funds; and WHEREAS, City Council adopted Resolution 2008-121 that adopted a new Investment Policy dated December 2, 2008 (the "Investment Policy") reflecting the current financial markets and providing guidance to the Financial Officer on prudent investment practices to protect investment principal and maximize return on City investments; and WHEREAS, City staff has recognized the ongoing turmoil in the financial markets and recommends amending the Investment Policy to increase the percentage of City investments that may be allocated to Agency Security instruments as those investments will maximize investment returns and minimize investment risk; and WHEREAS,City staff has also recognized that the use of a Securities Lending Program(the "Program")provides the potential for additional revenues on the City's investments but Section 24- 75-601.1 of the Colorado Revised Statutes requires that such a Program be adopted by resolution by City Council; and WHEREAS, City staff has put on'file with the Office of the City Clerk the proposed amendments to Section VII.1. Diversification and Asset Allocation of the Investment Policy; and WHEREAS, City Council believes it is in the best interests of the City to approve the amendment to the Investment Policy and the use of the-Program as an investment strategy for the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 1. The Securities Lending Program as set forth in the Indemnified Securities Lending Agreement dated October 16,2006 and amended in the First Addendum to the Indemnified Securities Lending Agreement dated October 19, 2009, on file in the office of the City Clerk, is hereby adopted. Section 2. The Investment Policy dated December 2, 2008 is amended to increase the percentage of City funds that may be invested in Agency Security investments. Passed and adopted at a regular meeting of the unci, of the City of Fort C ns this 1 st day of December A.D. 2009. Mayo --ATTEST: _ ss)_ n ALDA, City Clerk