[R.O. 2011 §140.180; Ord. No. 97-13 §1, 2-26-1997]
It is the policy of the City of Trenton and its municipal utilities
(TMU) to invest public funds in a manner which will provide a reasonable
investment return with the maximum security while meeting the daily
cash flow demands of the City of Trenton/TMU and conforming to all
State and local Statutes governing the investment of public funds.
[R.O. 2011 §140.190; Ord. No. 97-13 §1, 2-26-1997]
A.
Investments
shall be made with judgment and care under circumstances then prevailing
which persons of prudence, discretion and intelligence exercise in
the management of their own affairs, not for speculation, but for
investment, considering the safety of this capital as well as the
probable income to be derived.
B.
The
standard of prudence to be used by investment officials shall be the
"prudent person" standard and shall be applied in the context of managing
an overall portfolio. The Accounting Supervisor and the City Clerk
acting in accordance with written procedures and the investment policy
and exercising due diligence shall be relieved of personal responsibility
for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
[R.O. 2011 §140.200; Ord. No. 97-13 §1, 2-26-1997]
A.
The
primary objectives, in priority order, of the investment activities
shall be:
1.
Safety. Safety of principal is the foremost objectives
of the investment program. Investments of the City of Trenton/TMU
shall be undertaken in a manner that seeks to ensure the preservation
of capital in the overall portfolio. To attain this objective, diversification
is a consideration in order that potential losses on individual securities
do not exceed the income generated from the remainder of the portfolio.
2.
Liquidity. The City of Trenton/TMU investment portfolio
will remain sufficiently liquid to enable the City of Trenton/TMU
to meet all operating requirements which might be reasonably anticipated.
3.
Return on investment. The City of Trenton/TMU investment
portfolio shall be designed with the objective of attaining a market
rate of return throughout budgetary and economic cycles, taking into
account the City of Trenton/TMU investment risk constraints and the
cash flow characteristics of the portfolio.
[R.O. 2011 §140.210; Ord. No. 97-13 §1, 2-26-1997; Ord. No. 2015-21 §1, 4-13-2015; Ord. No. 2015-25 §1, 4-13-2015]
A.
Management responsibility for the investment program is hereby delegated
to the Comptroller or the City Clerk. No person may engage in an investment
transaction except as provided under the term of this policy. The
Comptroller or the City Clerk shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the
activities of subordinate officials.
B.
The Comptroller or the City Clerk shall submit a monthly investment
report to the City Council.
[R.O. 2011 §140.220; Ord. No. 97-13 §1, 2-26-1997]
Officer and employees involved in the investment process shall
refrain from personal business activity that could conflict with proper
execution of the investment program, or which could impair their ability
to make impartial investment decisions. Employees and investment officials
shall disclose to the City Council any material financial interests
in financial institutions that conduct business within this jurisdiction,
and they shall further disclose any large personal financial/investment
positions that could be related to the performance of the portfolio.
Employees and officers shall subordinate their personal investment
transactions to those of the City of the City of Trenton/TMU particularly
with regard to the time of purchases and sales.
[R.O. 2011 §140.230; Ord. No. 97-13 §1, 2-26-1997]
A.
In
order for a financial institution to qualify as a depository for operating
funds or for investments of the City of Trenton/TMU, it must be a
FDIC insured organization. Brokerage firms must be SIPC insured and
a member firm of NYSE with full service offices in the State of Missouri.
B.
All
financial institutions handling City operations or investment funds
shall supply a current audited financial statement on an annual basis.
[R.O. 2011 §140.240; Ord. No. 97-13 §1, 2-26-1997; Ord. No. 2015-22 §1, 4-13-2015]
A.
The City of Trenton/TMU is authorized by this policy to invest in
the following:
1.
Investment type.
a.
Collateralized certificates of deposit savings accounts, money
market accounts.
b.
Direct obligations of the United States Government (Treasury
bills, notes, bonds) with maturities of five (5) years of less.
c.
Securities which are on the State of Missouri office of the
State Treasurer's list of securities acceptable as collateral to secure
State deposits.
d.
All investments must also be in compliance with applicable bond
covenants.
2.
Investment maturities. All investments must
have a maturity of five (5) years or less, specifically approved by
the City Council.
[R.O. 2011 §140.250; Ord. No. 97-13 §1, 2-26-1997]
A.
All
investments and deposits which exceed the financial institution's
insurance limits shall be secured by eligible collateral. The market
value of the collateral must be equal to or greater than one hundred
ten percent (110%) of the value of the total deposits less the amount
of insurance coverage. Eligible collateral shall mean all securities
which would otherwise be qualified for purchase under this policy
and which are on the State of Missouri office of the State Treasurer's
list of securities acceptable as collateral to secure State deposits
(see Exhibit A attached to ordinance and held on file in the City
offices), providing that said securities are fixed as to principal;
i.e., mortgage-backed securities which experience principal pay downs
are excluded.
B.
All
investments purchased under this policy are to be issued in negotiable,
bearer form to the City of Trenton/TMU or in the form of a safekeeping
receipt.
C.
Collateral
will always be held by an independent third (3rd) party. A clearly
marked evidence of ownership (safekeeping receipt) must be supplied
to the City of Trenton/TMU and retained.
D.
The
right of collateral substitution is granted.
[R.O. 2011 §140.260; Ord. No. 97-13 §1, 2-26-1997]
All security transactions entered into by the City of Trenton/TMU
shall be conducted on a delivery versus payment (DVP) basis. Securities
will be held by a third (3rd) party custodian designated by the Accounting
Supervisor and the City Clerk and evidenced by safekeeping receipts.
[R.O. 2011 §140.270; Ord. No. 97-13 §1, 2-26-1997; Ord. No. 2015-23 §1, 4-13-2015]
A.
The Comptroller and the City Clerk shall establish an annual process
of independent review by an external auditor.
B.
Internal control shall be obtained through the monthly reports that
are set forth as part of this policy. These documents will be reviewed
and approved by the City Council. These reviews will provide internal
control by assuring compliance with policies and procedures.
