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: _
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ALDA,
City Clerk