HomeMy WebLinkAboutResolution No. 522-07 • RESOLUTION
BE IT RESOLVED by the Common Council of the City of Rochester that the City adopt a
revised investment policy. A copy of the policy is attached.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS DAY OF � '12� , 2007.
PRESIDENT OF SAID COMMON COUNCIL
ATTEST:,—
CITY
CLERK
APPROVED THIS DAY OF 1-X 12007.
• MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res 05 W d o pt.I n v e st P o l i cy2
•
• I. .Scope
This investment policy applies to investment of operating and reserve.funds of the City of.Rochester
(the:"city") �yhrch are pooled from various departrr%etlts and funds.. The izvestment income derived
front the pooled funds shall be:allocated to the contrbutizg funds based upon:the;prapartiaia of.the
respective av er.`age balances relative to the total pooled valance:
eparate investment policies or agreements may existlo address,proceeds:from:certain bond issues or-
debt seiw ice fiznd"I n accordance:with arbitrage;rebate requireznets:.
M. Objecfives
The primary ablectives,inp iority order,of investment.adtiv ties shall be;
. Preservation of capital.: and protection.of`investment p *,ipal,.
Maiiitenance of suffici'erit liquidity to meet':anticzgated cash flows.
Diversifrcatianto avoid incurring unxeasonable rharket risks.
• A,ttainmeni of a market rate o£return.
• Conformance with all applicable City o di iancesz state statutes:and federal:regulaf ons;
M. #ndards of Care'
•
1.,: TiWence
The standard to b applied in the context'of managing City'zs invesimentportfoho 411.a71'be the
'cprudeiit person' standard which states that inve eats shall;be made wrth judgment arid, care;
under circumstances .then prevailing; which persons of prudence,, disereton and:, intelZgence
exercise. in the :management of their own affairs;- not for speculation; but for tut�esinent,
consideririb the:;probable safety oftheir capital:aswell as the probable1inconXe to be clezi�ed
Investment ofiffcers acting in accordance with written procedures and this %nvestment policy and
exercising.dtze diligence' shall be relieved .of.pdrsonai responsibility.for an.individual secuzzty's
dlt.r
creisk or r"arket price:changes,provided de`viations:from.expectations:are.reported rn a.timely
fashion and;the purchase, acid the-sale of secutzties are'sari nod out.in accordance with the Terms:of
this investment'policy..
77ne City will "minimize deposit custodial credit Fisk, which is the loss or failure .rrf the
depository bank by obtaining collateral or loud for all uninsured amounts of deposit, and by
obtaining necessary documentation to show compliance with state law.a nd a perfeeted security
.interest under;federal late.
pouf of state registration
co apleted.broker/dealerquestionnaire
wntten receipt QfAe:statementof investmentrestri Lions;referred to above and.Wiitfen agreeir ent to
canduet.investment transactions with;the City in:accordance nth.those in restrictions; in
accordance: with this :mves, en policy and in accot dance with 1tiF:-aneso"ta: Statutes, 1'18A.04;
7-M and I18A.Q:
An annual review of'the-financial.eonditiazi and registration of qualified bidders wzll be conducted by-
`
he Director ofFinance.ar designee.
-The City`may purchase commercial paper fiom direct:issuers even.though they are:;natDh the.approved
brokerldealer list•as long as`they.meet the criteria out7ined�-` ltem.;6 df the Suitable aid Authorized
hivestments section.bf this investment policy_
`,Procedures and Controls
the Director.:of Finance shall develop written administrative procedures and internal controls,
consistent with this- mv.estme.nt policy, for the operation.of°the City'& axiyestinent program.. Such
procedures shall be designed to prevent;losses: of pubhc funds arising,fr9m frazzd; employee:error;
misrepresentation.b third parties; or irnprtident actiaizs by employees of.the City Such procedures
shall include tefer noes to: delegation and. :sepaiat on.bf authority, written confi nation.df verbal
actions, investment accounting;repurchase air bi ents',wire'transfers, collateral/depositpry,a„azeements
and baiakizzg services coatdcts.
VI..Authcirized Depositories.
Pursuant to Minnesota Statues, Section. 11$A..002, the :city Council shA designate :one or more
depositories:eligible to receive eiy funds. A last ofsuch depositories wille;maiitained.by the.Fiiiance
Department. To b
e eligible, a depository -must be a Menibel of file Federal, Deposit lnsurance
Corporation;and shall collateral ze deposits in;excess of FDIC o.m . age in accordance. itfi;lVlinnesota
Statutes, Section 11 M.03,,
VH. Sa&k,eeping and Custody
In order to elinzinate crtstodial credit risk, the Director c&Finance;shall select one or more financial
institutions-to provide safekeeping and custodial.services for the-City,in accordance wlththe provisions
Of Minnesota Statues; Section .1 l 8A:0Ob. A: afekeepins Agreement approved.�y the, City sha11 be
executed with each,custodian bank prior to utilizing that bank's safekeeping seices Cus#odian banks
will be selected on. the basis of their ability;"•to provide services for. the Cfty's •account:and the.