Resolution 93-720W%E12EAS~ the Fin= f the City has proposed an
In~est,aen,. Po3iey stat_.___ -__ v; and
the C - he best i cf
the CityR to dl.xect" _....ds pursuant rto tthe
pxopcs ed Investment P
NOW T EFbHE~ H S CITY COMMISSION OF THE
CITY OF LONGW00-~ FLOW-A _n....
`['he F e Director ~+- ity funds puxsnant
the proposed 1 ~+ cePY e" which is
attached hereto and eie +~t P. .
L
PASSRD AND A-OP1'L'- ?'__ 1993.
Appro ~=d a ~ =nd ty f se use and - to o£ the
C1Ly Longwood, r ~n1y. ~ r
v _ i Lcngwocd
CITY OF LONGWOOD
INVESTMENT POLICY STATEMENT
~G$LPE
This investment policy applies to all 9nancial assets held or controlled by the City
other than pension funtl assets when held by a thirtl party cusiotlian antl/or money
manager.
IL INVESTMENT OBJEC,~.T.jy€$
The following in estment objectives will be applietl in the management of the City's
funtls.
' The primary objective of the City of Longwood investment activities is the
preservation of capital and the protection of investment principal
" In investing public funtls, the City will strive to maximize the return on the
portfolio but will avoitl assuming unreasonable investment risk.
" The City's estment poMOlio antllor poMOlio management strategy will
provide sufficient liquitlity to meet the City's projectetl operating and capital
requirements to insure the orderly conduct of the City's business affairs.
' To control risks regarding specifc security types, o individual financial
institutions or specrfic maturity, iha Ctty will tliversify its investments as much
as practical.
III. AUTHORIZED INSTRUMENTS
The Director of Finance with the approval of the City Atlministrator may
purchaselsell in estment securities, at prevailing market rates, a appropriate
amount thereof in
(a) The Local Government Surplus Funds Trust Fund; or
/' (b) Negotiable tlirect obligations of the Unitetl States Government which are
uncontlifionally guaranteetl by the Unitetl States Government, or
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(c) Negotiable tlirect obligations of the Fetleral Agencies which are guaranteed
by the Agency itself or
(tl) Repurchase agreements and reverse repurchase agreements comprised of
only those investments instruments as otherv+ise authodzetl herein; or
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(e) FixetlJncome mutual funtls comprised primarily of only those investment
Instruments as describetl in Section III para. (a - c).
IV. INVESTMENT MATURITY AND LIOUIDITV
To the eMent possible, the CRy will attempt to match its investments with overall
anticipated cash Flow requirements. Unless matchetl to a specific cash Flow
requirement, the City will not directly invest in securities matudng more than seven
(~ years from the tlate of purchase.
V. RISK AND DIVERSIFIClSIQLJ
It is the policy of the City of LOngwoodto tlivereify its investment portfolios. Assets
held shall be dlversiFletl to control the dsk of loss resulting from over concentration
of assets in a specific maturity, a specific issuer, a specific instrument, a Gass of
instruments, and a dealer through whom these instruments are bought antl sold.
VI. RIA F E TI N F IAL INTERMEDIARIE AND I R
All severities purchased shalt be only those securities of authorized issuers o(the
venous security types.
VII. INSTR M NTS CZQ
The following are the authohties for investments antl limits on security issues antl
mawmiea.
A. LOCAL GOVERNMENT SURPLUS FUNDS TRUST FUND (TRUST FUND)
1. Authority to Invest
The Director of Finance may invest in the "Trust Funtl".
~. 2. PoMOlio Composition '~
A maximum of 9n% of the poM011o may be investetl in Me "Trust
Fund". Bond proceeds may be deposited in the "Trust Funtl" until
alternative investments have been purchasetl antl are not paR of this
calculation.
0. GOVERNMENT SECURITIES
1. Authority fo Purchase
The Directorof Finance with the concurence ofthe City Administrator
may in est in negotiable direct obligations of the U.S. Gov ent.
Such securities will include but not be Iimitetl to the followingnm
Treasury Bills 1
~' Treasury Notes
Treasury Bonds
G FEDERAL AGENCIES
1. Authority to Purchase
The Director of finance with the concurrence ofthe City Administrator
may in est in obligations the principal and interest of which a
conditionally guaranteetl by the instiWtion. Such sewrtties will
nclutle but not be Iimitetl to'.
Federal National Mortgage Association (FNMA)
federal Farm Cretlit Banks (FFCB)
Fetleral Home Loan Bank or ks District Banks (FHLB)
Fetleral Home Loan Mortgage Corporation (Fretltlie-Macs)
~„ Fetleral Home Loan Mortgage Corporation participation '~
certificates
" Stutlent Loan Marketing Association (Sallie-Mae)
Small Business Administration (SBA)