ORD 420 11/21/1989ORDINANCE NO. 420
An ordinance by the City Council of the City of Cibolo, Texas; providing
for the investment of idle city funds in all established' and future city
accounts. Local funds will be placed in investments that yield the highest
possible rate of return while providing necessary protection of the
principal consistent with the operating requirements as determined by the
City Council and in accordance, with state laws governing the investment of
public funds. This ordinance emphasizes the safety of principal in all
investment activities and designates the Mayor or Mayor Pro Tem (in the
absence of the Mayor) and the City Administrator to operate and control the
investment program. Additionally; the types of investments authorized and
institutions in which investments may be placed are defined. This
ordinance is effective upon approval of the City Council.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS:
Section
1
Index
Section
2
Scope
Section
3
Objective
Section
4
Responsibility and Control
Section
5
Authorized Investments
Section
6
Qualifying Institutions
SECTION TWO (2): Scope
This investment policy applies to investment activities of the Government
of the City of Cibolo. All financial assets of various city funds to
include the General Fund, Water and Sewer Operating Fund, Payroll Fund,
Water and Sewer Capital Improvement Fund, Fire Department Enhancement Fund
and other funds that may be created from time to time, shall be
administered in accordance with the provisions of these policies.
SECTION THREE (3): Objective
The primary objective of the Citys' investment activity is the preservation
of capital in the overall portfolio. Each investment transaction shall
seek to first ensure that capital losses are avoided, whether they be from
securities, defaults or erosion of market value.
(a) The Citys', investment portfolio will remain sufficiently liquid to
enable the city to meet operating requirements that might be reasonably
anticipated. Liquidity shall be achieved by matching investment maturities
with forecasted cash flow requirements.
(b) The Citys' investment portfolio shall be designed to achieve the
highest rate of returng possible, primarily by utilizing Certificates of
Deposit and U.S. Treasury Securities.
(c) Funds held for future capital projects shall be invested in securities
that reasonably can be expected to produce enough income to offset
inflationary construction cost increases. However, such funds shall never
be exposed to market price risks that would jeopardize the assets available
to accomplish their stated objective, or be invested in a manner
inconsistent with applicable federal and state regulations.
(d) All participants in the investment process shall seek to act
responsibly as custodians of the public trust. Investment officials shall
avoid any transactions that might impair public confidence in the Citys'
ability to govern effectively.
(e) Investments shall be made with judgment and care, under circumstances
then prevailing, that 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.
SECTION FOUR (4): Responsibility and Control
The Mayor, as the Citys' chief executive.officer, is responsible for the
overall management of the Citys' investment program. The City
Administrator is designated as the Citys' Investment Officer and is
responsible for the day to day administration of the investment program and
the duties listed below:
(a) Maintain information as to available cash balances in city accounts,
and as to the amount of idle cash available for investment.
(b) Make investments in conjunction with the Mayor or Mayor Pro Tem (in
the absence of the Mayor) in accordance with this policy.
(c) Ensure that all investments are adequately secured, that safekeeping
receipts are held by the city in accord with this policy, and ensure that
other requirements placed on financial institutions are observed.
(d) Initially, bids will be solicited from financial institutions located
in the City of Cibolo. If the investment is made outside this city, at
least three (3) bids will be solicited orally.
(e) Prepare an annual written report describing investment transactions
for the prior fiscal year and submit the report to the Mayor and City
Council not later than sixty (60) days following the end of each fiscal
year.
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SECTION FIVE (5): Authorized Investments
Assets of funds of the government of the City of Cibolo may be invested in:
(a) U.S. Treasury Securities maturing in two years or less to include U.S.
Treasury bills, notes or bonds and other securities which are guaranteed as
to principle and interest by the full faith and credit of the United States
of America.
(b) Collateralized or fully insured Certificates of Deposit at FDIC
insured banks.
(c) Repurchase agreements if secured by U.S. Treasury bills, notes or
bonds.
(d) All deposits and investments of city funds other than direct purchases
of U.S. Treasury Securities will be secured by pledged collateral with a
market value equal to 100 percent of the deposited amount.
(e) Other types of obligations which are unconditionally guaranteed by the
State of Texas or the United States of America.
SECTION SIX (6): Qualifying Institutions
Investments may be made with or through the following institutions:
(a) Federally insured banks located in the State of -Texas. I
(b) Primary government security dealers reporting daily to the Market
Reports Division of the Federal Reserve Bank of New York.
PASSED AND APPROVED THIS THE al O DAY OF AL_r , 1989.
ATTEST:
Ann Smith, City Secretary
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Mayor Sam Bauder