HomeMy WebLinkAbout1982-070-06/01/1982-APPROVING A CASH MANAGEMENT/INVESTMENT PROGRAM AND AUTHORIZING THE DIRECTOR OF FINANCE TO ADMINISTER RESOLUTION 82- 70
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING A CASH MANAGEMENT/INVESTMENT PROGRAM AND
AUTHORIZING THE DIRECTOR OF FINANCE TO ADMINISTER THE PROGRAM
WHEREAS, Article V, Section 23 of the Charter of the City of Fort
Collins requires the Director of Finance to invest City funds, and
WHEREAS, in order for the Director of Finance to carry out such
obligation it is necessary for Council to authorize such investments,
and
WHEREAS, it is in the best interests of the City for the Director of
Finance to engage in a prudent investment practice designed to maximize the
return on the City' s investments
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Director of Finance be, and he hereby is, fully authorized
and empowered to transfer, convert, endorse, sell , assign, set over and
deliver any and all shares of stock, bonds, debentures, notes, subscrip-
tion warrants, stock purchase warrants, evidences of indebtedness or other
securities now or hereafter held in the name or owned by the City of Fort
Collins or its pension funds and to make, execute, and deliver under the
seal of the City or otherwise any and all written instruments of assign-
ments and/or transfer necessary and/or proper to effectuate the authority
hereby conferred, and
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that
the Director of Finance of the City of Fort Collins or his duly authorized
representative be, and he hereby is, authorized and empowered to invest and
administer the funds of the City of Fort Collins in any manner permiss-
ible under the laws of the State of Colorado, including but not limited to
those types of investment practices contained in the Cash Management/In-
vestment Program of the City of Fort Collins, attached hereto as Exhibit
"A", and hereby accepted and approved
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins this 1st day of June, A D 1982
Assistant play
ATTEST
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EXHIBIT "A"
CITY OF FORT COLLINS
Cash Management/Investment Program
Program Objectives
® Ma-x-imize the arrount of cash available both to meet the daily
cash needs and to increase the amount available for investment
e Earn the ma,-amum return on cash invested
® Minimize ris},, to investment principal
Authority and Responsibility for Administration of Program
o Assigned by a resolution passed by Council
® Director of Finance authorized and empowered to manage City monies
including the purchase and sale of investments
Types of Investments - City Funds
a Interest bearing accounts or time certificates of deposit at state
or federally chartered savings and loan associations in Colorado
which have been designated as depositories for public monies by
the State of Colorado
0 Interest bearing accounts or time certificates of deposit in state
or national banks doing business in Colorado which have been
designated as depositories for public rronies by the State of Colorado
e Obligations of the United States Government such as treasury bills
treasury notes and treasury bonds
e Bonds or other interest bearing obligations of which the principal
and interest are unconditionally guaranteed by the United States
Government such as GNMA and FNMA bonds GNMA Participation Certifi-
cates and GNMA Pass Throughs
• Debentures or similar obligations issued by a federal intermediate
credit bank or by a bank for cooperatives
® Notes or bonds secured by mortgage or trust deed insured pursuant
to title II of the ' National Housing Act obligations of national
mortgage associations or similar credit institutions organized under
title III of the National Housing Act " and debentures issued by
the Federal Housing Administration under section 204-A of the
National Housing Act
Types of Investments - Pension Fluids
e Investments of securities as described for the City
funds
e State and municipal bonds corporate notes bonds
or debentures convertible or otherwise and
equipment trust certificates
e Real property and loans secured by first mortgages
or deed of trust on real property participation
guarantee agreements with life insurance companies
and other types of investment agreements if authorized
by the passage of a resolution by City Council
e Common or preferred stock of United States corporations
Performance Standards
e Optimal daily cash balance to be maintained in both the
demand account and savings account will be determined
quarterly
e The yield as a measure of net return to be achieved on
investments will be determined quarterly
e The dollar return to be achieved on investments will be
determined quarterly
e The percentage of cash balances to be invested daily
will be determined quarterly
Reporting
e Activities of program will be reported quarterly
e Report will compare actual performance of cash balances
maintained yield dollar return and percentage of
cash balance invested to predetermined standards
e Investment portfolio showing the various types and the
dollar amount of investments in each fund
Administrative procedures
e Prepare a cash budget to determine cash needs and the
availability of cash to invest
e Pool cash from the various City funds to enhance in-
vestment capabilities therely maximizing investment
income
e Analvze market conditions of the various investment
securities on a daily basis to determine the maximum
yield obtainable
e Prepare investment assumptions umptlons as to marl et conditions
cash availability and starting rru{ of investment
securities
• Prepare investment strategies or actions to be taken
based upon assumptions and actions to be taken in the
event of an ure%pected drop in cash flow or une�cpected
revenues
s btilize bid process when purchasing or selling invest-
ments to insure that the highest yield or best price
has been obtained