[R.O. 2010 §135.050; Ord. No. 22-89 §1, 12-4-1989]
The City of Glendale hereby establishes the following investment
policy to apply to all financial assets of the City not necessary
for the operating expenses of the City. Any and all funds currently
existing or anticipated are included unless specifically excluded
by the Board of Aldermen or set aside in a special escrow account.
[R.O. 2010 §135.060; Ord. No. 22-89 §2, 12-4-1989]
A. Safety
of principal is the foremost objective of the Board of Aldermen. Each
investment transaction shall seek first to ensure that capital losses
are avoided, whether from securities defaults or erosion of market
value.
B. Investment
officials shall avoid any transaction that might impair public trust.
As public trust is an important ingredient in the investment policy,
all participants in the investment process shall seek to act responsibly
as custodians of the public trust by eliminating all speculation.
C. All
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 probable income to be derived.
[R.O. 2010 §135.070; Ord. No. 22-89 §3, 12-4-1989]
The City Administrator shall submit a monthly investment report
summarizing recent market conditions and their effect on the Board's
strategy. The report shall describe the portfolio in terms of investment
securities, maturities, rates, characteristics and other features.
[R.O. 2010 §135.080; Ord. No. 22-89 §4, 12-4-1989]
A. Funds
of the City shall be invested in:
1. U.S. Treasury Bills, Notes and Bonds.
2. Federal Farm Credit Bank Discount Notes and Coupon Securities.
3. Federal Home loan Bank Discount Notes and Coupon Securities.
4. Federal National Mortgage Association Discount Notes and Coupon Securities.
5. Federal Home Loan Mortgage Association Discount Notes and Coupon
Securities.
6. Government National Mortgage Association Pools and Securities.
7. Student Loan Marketing Association Discount Notes.
8. Small Business Association Securities.
9. Zero Coupon Government Securities.
11. Short Term Interest Bearing Accounts.
[R.O. 2010 §135.090; Ord. No. 22-89 §5, 12-4-1989]
A. Investments
shall be made to ensure the availability of funds on a timely and
adequate basis for payments of general expenditures and capital outlay
projects, both short and long term, in an expeditious manner.
B. Care
shall be taken to maintain seventy-five percent (75%) of the City's
cash reserves in short-term investments of less than two (2) year
maturities. Long-term investments of two (2) to five (5) year maturities
shall be limited to a maximum of twenty-five percent (25%) of the
City's investments.
C. At
no time shall the City invest funds with a maturity date of over five
(5) years without the approval of the Board of Aldermen prior to commitment
of such funds.