Resolution No. 89-59 CITY OF -IIGARD, OREGON
RESOLUTION NO. 89-_��
A RESOLUTION riDONTING AN INVESTMENT POLICY.
WHEREAS, ORS 294.035 requires investment officers to obtain a written order
from the governin,4 body of a neur.icipality bofor'e investing surplus funds, and
WHEREAS, it is beneficial to ?he City to establish certain guidelines and
limitations on the in.?stment of surplus funds .in Or'der' to sageguard the
assets of the City and to assure that funjs will he available to invet
.>bligations.
NOW, THEREFORE, BE: IT RESOLVED by the Tigard City Council that:
Section 1: The investment policy as set forth in Exhibit "A" is hereby
adopted.
PASSED: This o?44t-" day or
f�
ATTEST: - - -----
f Mayor -- City of fl•)ard �-...-
D uty Recorder - City of Tiyar"d
APPROVED AS TO FORM:
City Recorder �,�j� - �..
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RESOLUTION NO. 89-,
Page 1
"EXH I.ki I.-I A"
CITY OF TICARD
I.NVE:SIME�NI POLI.C:Y
The following Investment Policies are intended to meet the requirements of
ORS 294,035 and to provide the framework within which city Of ligar-d funds may
be invexted.
Au,thcr'i'
The Finance Director shall serve as the Investment Officer of thL' City. The
investment officer is responsit:le Lo ensure that funds ar-e invested so as to
make necessary cash available to meet current obligatiur:s and to invest excess
cash in accordanc•.e with ORS 294,035 through 294,047 and these Investment
Policies,
In the absence of the Finance Director, the Accounting Manager may acs- as
Investment Officer wiLh prior approval of the City Administrator.
Scope
These investme,-rt policies apply to all excess cash related to all -activities
and funds under the direction of the Tigard City Council, Cash accumulations
related to bond proceeds or short-Lean borrowing ar-e included unless more
restrictive state cr fuder'al regulations are applicable.
Excess cash shall be defined iAs all liquid ass
current obligations. TreCs ot necessary to meet
E)e,fe�rred rorrM.ensat_ion
?eferred compensation funds are placed with a third party for investment and
are. therefore excluded frcn, the restrictions set forth in these gu.ideli,-,,es.
ObI ctiyes
The objectives of these policies are to provide for the pr-eservation o# City
'
assets, the availability of such assets to meet obligations as ttrey come due,
and to provide for a reasonable rata of return on those assets, in that order-.
Pruq-; nt Investor
Investments shall be made under the prudent investors rule, which
"Investments shall be made with stataas,
judgrrrent and care, under• circumstances tFren
�srevailing, which persons of prudence, discretion, and intelligence exercise
in the management of their own affairs, riot for
investment, considering the probable safspeculation but for
ety of their capital as well as the
probable .income to be derived.
Internal Controls
The investment officer shall maintain a
which will .=„e reviewed annually by the independent 'audittt internal controls,
Cast!f low._AnaI 'A
The investment Officer shall maintain a historical cash flow record and a cash
flow projection which extends twelve months into the future. The projection
shall be reviewed and updated On a regular. basil. No fixed maturity
;:ecuritie;, shall be unless the cash flow projection indicates t�tat
the funds invested will not be required until the maturity date of the
investment.
Pond_Proo-e-eds
Surplus funds resulting front debt issuance shall be considered as a separate
portfolio and shall not be -estr-ictod by the matu+-ii:y and 1nStruIII,nt
diversirication section of these policias, Such funds may be invested for
,a} .,,. s•
perinri. _><��: :.� iR months and up to 36 mont.ts Such maturities shall
coins de with the projectt. d cash flew needs ret3uitiirty fro'rt tt•te projected
construction schedule. Such funds are restricted t ttto following instrucv its
`treasury/Agency Securities go percent maximum
Local Government. Investment Pool 100 per-cent maximum
Di.versifi�at_i.on
The investment Officer will diversify the general portfolio to avoid
unreasonable risks within the following parameter's:
o Maturity Diversification
Investment maturities shall be scheduled to coincide with project:ad
cash flow needs. -rhe 111ajor-ity of the portfolio will mature in less
than 90 Vis. ilio investn+ents will be made for a period to exceed IR
munths.
O Instrument Diversification
ce-tificat-es of Deposit- 25% maximum
commercial Paper 25% Maximum
Bankers Acceptance 50% maximum
Treasury/Agency Secur-it.ie.s 50% m<.xiMUM
Local Government
Investment Pool 100% maximum
Demand Deposits 10% max1mum
Other Authorized Instruments 25% maxitrum
o Institution Diversification
Sank liabil.itic-s with any one qualified financial .institution s ail.
not exceed 20 percent of the portfolio. Bank liabilities of any one
qualified financial institution shall not exceed one percent Of the
inst'itution's total assets. Investment in commercial paper shall not
exceed 10 percent of the portfolio in any one Oregon corporate entity
meeting the rating requirements of P-2/A-2 or better, or five percent
of the portfolio in any one corporate entity outside the State of
Oregon meeting the rating requirements of
i.
Savings and loan inst.ituticns shall be distinguish from commercial
banks in that Certificates of deposit with savin"I'c' and lean
institutions shall not exceed $100,000 unless the excess is
100 percent collateralized by certificate in the State Collateral
Pool.
For purposes of these guidelines, the state local governmentinvestment: pool
shall be considered to have a one day liquidity.
Selection of Investment Instruments
Investments shall be made by the inve_tment officer through the exorciso of
his/her- judgment after requesting quotes from financial in_:titut ions.
Selections will be wAde so as to provide the highest rate -f return within the
parameters of these policies.
ualified Institutions
The investment officer shall maintalri a list of all authorized institutions
which are approved for investment purposes, The invest-mentofficer will
request, analyze, and keep on file, pc-riodic financial statements and related
information to satisfy himself as to the creditworthiness of each institution
on the approved list.
Reporting
The investment officer shall prepare an investment activity report at the end
of each month for review by the City Administr-ator.
Amendments
These investment policies may be amended at the request of the investment
officer, the City Administrator, or members of City Council. Such amendments
shall be approved by the City Council in the same manner as the investment
policies.
Authorizes! Investment Instruments
The following investment instruments listed in ORS 294.035 as "approved
securities..." shall be authorized investments for the City of Tigard.
o Legally issued goneral obligations of the United States, its agencies
and instrumentalities, and those of the states of Oregon, Washington,
Idaho or California.
o Time deposit open accounts, certificates of deposit, and savings
accounts in banks, mutual savings banks, arui savings and loan
associations which maintain a head office or branch in the state of
Oregon.
o Trusts in which deferred compensation funds from other public
employers are pooled.
o Banker's acc<:ptances that are auaranteed by a qualified financial
institution. A qualified financial institution being one which is
licensed to do a banking business and
located ire the state of Oregon
not required under ORS 295.018 to maintain a reserve deposit of
collateral for 110 percent of its public fund deposits.
o Commercial paper issued by or on behalf of a qualified financial
institution, a holding company owning a majority of such an
institution, or a corporate entity having its headquarters in Oregon
or employs 50 percent of its workforce in Oregon, or has 50 percent
of its tangible assets in Oregon.
a Commercial paper issued by a publicly held corporation, organized
under the laws of a state other than Oregon and that is rated V--1 or
wo.
u Repurchase agreements involving legally issued general obligations of
the United Mates and its agencies and instrumentalities. The seller
must afire, to repurchase the securities within 90 days following the
date of the investment. If the maturity of the underlying security
exceeds le manths, the pricy raid shall not exceed 98 percent of the
current market value.
Investment in repurchase agreements mu>t be accompanied by a signed
agreement with the seller and a confirmation including a full
description of securities held in safekeeping.
Saf�ekee ira
Certificates of Deposit will be placed in a secured area within the vault on
the premWes at the City of Tigard. All bearer instruments, treasury and
agency securities, and bankers acceptances shall be placed in safekeeping with
a qualified third party.
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