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Home My WebLink About2013 Resolution No. 035RESOLlJflON NO . !15 SERIES OF2013 -- A RESOUTnON ACCEPTING CHANGES AND UPDATES TO THE CITY OF ENGLEWOOD'S lNVESTMENI' POLICY PURSUANT TO ORl)(NANCE 45, SERIES Ur 1995 . WHEREAS, Ordinance 45, Series of 199S, tlic Director of Financial Services, ex officio City Treasurer, is empowered to invest all funds wid monies not immediately needed for operating expenditures/expenses of the City except for the Firefighters Pension Fund , the Volunteer Firefighters Fund, the Police Officers Pension Fund and the Non-Emer11ency Employees Pension Fund and ?ursuant to an investment polic.y to be adopted by Council each year; and WHEREAS , changes bvolve clarifying language, removing subordinated debt from ullowal,lc investments, extending the weighted average fina l marurit)' of the total portfolio not to exceed three year;, updating authorized personnel, updating broker/dealers, and information regardinl! the designated custodial bank · - WHEREAS, the passage of this Resolution wi II authorize changes and updates to the Englewood's Investment Policy; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIT. OF THE CITY OF ENGLCWOOD, COLORADO, THAT : Section 1. The Ci:y of Englewood 's Investment Policy , attached as Exhibit A, submitted by the Director of Financial Services is hereby approved . ADOPTED AND APPROVED this 19th day of February, 2013 . 1, Loucri sbia A . F.lhs, Ory r.lerk fnr ~h~iry of Englewood , Colo ado, hereby certify the •hove is a true copy or Res Jiu ti on No. -~-· Serie~ of 201 •. • ' .c; ucrishia A Ellis, City Clerk · City of Englewood, Colorado INVESTMENT POLICY The Direclor of Finance and Administra1ive Service!\ of the City of Englewood. Colorado b charged wilh the responsibilily lo prudonlly .ind properly manoge any and all funds of lh• Cll y. Becouse these funds may be called upon, ii is essential thal absolule maturily horizons are idenllflable for lhe purpose of liquidity. Moreover, lhese funds must ,e fully collaterahzed and ilppropriately authorized . The tollo'N'ing Investment Pohcy addresses the methods , pro~ec111r~ ;,nc1 nrr1r.t1r.F1!=. whir:h m:Js· he r.xP.rci~ed to ens1Jre effective and sound f.scal management. ~ This l11veslment Policy shall c:tpply ;o the investrnenl of alt financial asset& and all funds of the City of Ens:,lewool! (hereafter I eferrt:d to as the ·Chy·; o·,er which It exercises financial :ontrol, except the Cily of EnAlewood Firefighters Pension Fund, Volunteer firefighters Pension Fund, Police Officer::; rension I und the Non~Emergericy Emp l~1ecs Retirement Pion Fund and ot her City c-m;,loyce retirement plons. In order to. efrectivaly rnake use of the C1ly's cash resources, all monies shall t ,e µcoled inlo ono investment account and accounied tor separa1e1y. The inveslment income derived from V1is :ir:r:nunt ~h;tll hA r1 l~tributed to the various C11y funds in accordance with :2.ng !ewood Municipal Code, 4-1 -2-A. • mGm~ • The City's fui:ds shall be invesl~d in accordance wilh all applica,le City policies, Colorado statutes, and Federal regula:ions, and in a manner designed ?o acco:npl :sh the following objectives, which are listed in priority order: Preservalio1 of capital and the protection of investment principal. Maintenance of sufficient liquidity to meet anticipated disbursements and cash flows . :>iverslfication t:, avoid incurring unreasonable risks regarding se:urilies owned. • Attainment of market rate of return equal to or higher u,an the performance measure established b)' the Oire::;tor of Finance and Administrative Services. DELEGATION OF AUTHORITY The ullimatc rcspontibillty and ~utho:-ily for inveslmenl transactions involvir1 the City resides wi:h the Director of Fir,ance and Acr.1 1nistrative Serv ices (herainafte· referred to as the "Director"} who has :>sen de~ignated t>y lhe City Manager as , the lnvestme~t Officer 1n accordance <J.ri th Englewood M,,nlcipal Code. T he Direcl,r may a~po_lryt other merr.bers ot tt,e City stall to a.sis• him in the cash manaoement and U'lvestMen·. funr.t1on . Persnn~ who am t ,1thorlzAd to transac1 business and wire tunr.s on a?.half of lhe City wil: be designated by the Director by lhe wire transfer agreement ~xeculed wllh the Ci:y's approved deposllory for bank services (see Appendix I). The Director lihall be responsible tor al' investment dt,:cisions and acfr-1ities , and shall estr1biish writlen adminislralive procedures for lae op6rahon of lhe City's investment program cc,sisicnl wilh this Investment f'tolicy, The Investment Offcer acting within ti,ese procedures shall n;;,t be held persor,ally liable for specific invcslmenl transactions. The Director may in his disc:elion appoint one or more Investment Advisors, re9isterad wilh lhe • Securities and Exchange Commission snder lhe lnveslmenl Advisers Act of t 940, lo manage a Page 1 A portion of the City's assets . An an,,ni nlftd lnv•stment Acfv isnr m11y be granted limlteci investmeril discrotion w,thin the guidtllne, of th i• Investment Polley wllh regard to the City's assets plACed under it3 monogcmcnt. An Investment Ad visor con only :,a a:>pointed after consulta ti on with and approval by Iha City Manager. · PRUDENCE The standard of Jrudence to be used for managing the t;1ty's assets 1s the ·prudent Investor" rule, which states that a Jrudent inveslor "shall exercise the judgment and care, under the circur.islances then prevailing, which men of prudence, diacrellon, and intelligence exercise In the man119ement or the property of anolher, not In regard to speculation but in regard lo the pe,-,,,anent disposition nf fur,ds, considering the probable income as well as the probable safety of capltcl." (CRS 16-1 -304, Standard for Investments .) The City's overall investment program sha l; be designed and mar.aged with a degree of professlor,allsm that Is worthy or the public trust. The City recognizes that no investment Is totally without risk and that the investm~nt acUvl t1es of tne City are a mailer of public record . Acco rdingly, the Clly recognizes '.hat occasional measured losses may occur in a diversWied portiollo and shall ~e considered within the context of the po1folio's overall return , provided that adoq "3le diversification has been mplementerl and that lhe sale of a secJrily is In the best long- term interest of the City The Director anC othor auth:>rized persons acting in accordance with es1a::,ilshed procedure ~ a.,d exercising due diligence shall be relieved of pornono l roGponsibility for an individu3l tecurity'a cre~il risk o r rnarkot pri ce changes, ~resided deviations from expectations are reported in a timely rasnlr., to the City Ccuncll and appropriate acliun is taken to control adverse developments . ETHICS AND CONFLICTS OF INTEREST . All City omployees invo,ved in the investment process shall refrain from personal business activity that could conHict wllh proper execution of the investm!!nl prngram, or which co1Jld Impair their obility to make impartial investment decisions . Employees and inv• ;tmvnt officials shall disclose to the City Manager any material hnanciol intere~l in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment ,osilions that could be related to the performance of the City's pu rtfollo . Employeos shall subordinate '.heir personal inveslr.ient transactions to these of the City parttcula~y with regard to :he timing of purchases and sales . !=LIGIBLE INVESTMENTS AND TRANSACTIONS All investments will be made in accordance wllh the Colorado Revised Statutes (CRS) ;,s follows : CRS 1 1-10.5-101, et seq . Public Deposit Prot..cticn Act; CRS 11-47-101, et seq . Savings and Loan Associotion Public Deposit Protection Act; CRS 24 -75-601 , ol seq . Funds-Legal triveslmtmls ; CRS 24-75-603, el seq . Depositories; and CRS 24-75-701, et seq. Local governments -authority to pool surplus funds . Any revisions or extensiJns of these sections of the CRS will be assumed to be part of this Investment Polley immediatelf upon being enacted. As a home rule City, Englewood may adopt a list ol acceptable investment instruments d iffering lrom those outlined 1n CRS 24-75-601, el saq . Funds-Lega! lnvestmAnls . Funds of the City of Englewood covered by th is Investment Policy may be invested in the lollowing types nf securities and transactions : I . U.S . Treasury Obligations: Treasury Bills, T,easury Notes and Ti easu1y Bonds with m;,turi lies r.ot exceeding five years from :he dat e ol trade settlement. 2. Treasury Strips (book-entry U.S. Treas1ory securities whose coupons have been removed) w· h r:,aturilies not exceeding five years from the date of trade settlement . · Pagc2 3. ~onaral ln!\trumenta lll ies -nr.hfm 1urtts . Discount NntP.s, MAd tum-Term Noles, Ca!l able • Securities and Step•LIP Secur ities lsgued l>y lhe followi ,19 only: Federal National Mortgage Associat ion (FNMA), Federal Hom~ Loan Bank (ntL0), Federal Home Loan Mortgage Corpornlio n (FHLMC) and Fodoral F,,rm Credit Banks (FFCB), with maturities not exceeding five yea rs from the dale of tradu se ttl ernenl. Subordinated debl may not b e p1rchased . 4. R1.:!pu1chc1~e AyrtfHmtmts wilh a te1mina :ion da te of 90 days or less ulil izing U.S . Treasury and r ederal ln•trumenlalily securille• listed above, colialeralizec al e m'nlrnum market value of 102 percent ol lhe dollar value of the transaction wllh the accrued interest accumulated on t,e coiialeraI included In lhe calculalion . Reµurchase ai;jfeemenls shall be er,tered in to only with deale rs Who: a) are recognized as Primary Doolorn by tho Fodornl Rcncrvo Bonk of New York , or 'Mth firms lhal have a primary dealer within their holding company struct •Jre; and b) have executAd a City approved Master Repurchase Agreement (see Append:x II). ThP. D lrecl~r shall maintain a me of all executed Master Repurchase Agreements . Primnry Dealers approved os Rcpurc'laoc Agrcomcnl countorparties, ii roted , oholi h~ve o short -te r11 credit rating of al least A-1 or 1,e equiv,lent and a iong -lerm cred:I r3!1ng of at l~•sl A or thP. i:tf111Wr1 1,mt . Collateral (purchased securities) sh all be held by the City's ccslodi an bank as sa fek eep ing agcnl, and the morkcl value of th e colloloral oocur ilio o oholi be markod -to-tno -morkot daily. For thA pllrpn sfl:s of lhis section, the lerm "collateral" shall mean ·purchased securil ies" under the l enn s of the Cily approved Master Repurchase Agreem ent In no case wil l the malu rily or the collateral exceed 10 years . 5, Reverse Repurchase Agreements wit h a maturity of 90 da1·s or less execulec oily aga in st • sAcuriliP.s ownAd by the Clly and coilaterallzed by the ~at~e type of security reversed . 6. Flexible Repurchase Agreeme11l! with a final malurily of 10 years or less eniered inlo ty the City with approved counte rportieo . These flexible repurcha se ag reements may be closed oul in varying amounts and at varying times al the option of the City. These ag reee-,ents are deemed by bolh panIes lo be purr.hases and sales of ser.urllies and ara not loans . Ail such flexib le repurchase agreements shall meet lhe fol lowing criter ia: Be delenmin9d as legal and valid for bolh part ies ; Colialcral shall be h,,,;,cd lo: a) Securities Issued by, guaranteed by, or for which the credit of any cf the follt Ning is pledged tor payment · the Ur,lted States, Fed eral Farm Credit Bank, Feoeral Land Bank , Federal Home Loan Bani<, Federa: Home Loan Mortgage Corporation, Federal Nation al Mortgag~ Associalio n1 Export lmpo,t Sank ur u,e Government National Mortgage As sociation ; or b) Securities issued by, guaranteed by , or for which the credi: of the following is pledged 'for paymer.t: An entily or organization which i; no! iisled in paragraph a) above , bu! which is (1) created by, or lho creation of wh ich Is authorized by, legislation enacted l>y ti 1" United Slates Cu11yrnss a11d which is sub ject lu cuntrol by the fe deral govemmenl which is al least as extensive as thal which governs an ent ity or orgonizatlon listed in paragraph a) obovc, and (2) ralod in Its highosl rating category by one or more nationally recognized organizations wh ich regularly rale such obligat1nn~ Have a fixed rate during the enlire life ol lhe agreement: The dollar amounts and pertocs of time when the City may draw funds cul of the repu rchase ~greemenl shall be agreed u pon in wrlli n3 by both parties and shall be part of • ti ie ,vritlen repurchase ~greem e nl exercised by the City and the approved counterparty; The City has the option of varying the dollar amount and the limhg of the draw down by an agreed upon per:entage of the ~ draw down and a specified number or days . The City and the counterparty :o the agreement will specffy the details ol the allowable variance when the agreeme,t Is structured . In addl:lon , fhe City may draw down In excess ol the variance up to the remalnirg balance in the agreement for a bona fide, unanticloaled cash need · co·JalAral shall have a minimum market value (including accrued interest accumulated) of at least 102 percAnt of the donar value of the transact ion; Repurchase agreements shal be entered in!-, only with dealers who a,e authorized by the Director ond have oxoeute<f a City approvE•d Master Repurchase Agreement; Th• Dir ector shall ma lataln a file of all exe, .. ted Moster Repurcha,e Agrocmento; The title tu 01 a µertected ~ecurlly imerest In securities , along with any necessary transfer documents, must be t,ansferred and actually dtdlvered lo, and shall be held ~y . the City's third-party custodian bani. acting as safekee?lny agent n., market value of Jhe collateral securities shall be markec-to-the-market at least weekly based on the closi11 g Did price al the !,me lhe cus,odian for the collateral issues Its monthly statement lo the City. For ,he purpose of Jhe section, the term "collaleral" shall mean "purchased securities' under the terms of the City ap,roved Masler Repurchase Agreemenl. In no case wlll the maturity or the r.ollaler;u exceed 10 years . Time Cenificates of Depos it wllh a maximum maturity of five years or savings accounts in stale or national banka or stale or federallv chartered savings banks operating in Colorado that arc stoto approved deposllcrles (as evidenced by a cerlificale issued by the Sl~le Banking Board) ard a,, insurod by the FDIC. Certificates of deposit that exceed the FJIC insu ·ed amount shell be collaterallzed in accordance with t,o Colorado Public Deposit Protect1011 Ac!. The conateral shall have a mark el value equa · to or exceeding 102 porcent of the difference be~.,.een the I11,ured amoun: and the City's total deposits for all funds within the ,nslitut;o n. 8 . Money Markel Mutual Funds registered under the Investment Company !'let of 1940 that 1) are 'no-load" (i.e .: no commissio1, or tee shall be charged on purchases or sales of shares); 2) have a constant net asset value per share of $1 .00, 31 lir.111 assets ol tne lune to secuntIes author:zed bl' stale statute: 4) have a maximum sta led maturity ~nd we ighted average maturi:y In accordance wi :h Rule 2a-7 of the Investment Company .Acl of 1940; and 5) have a ralino or AAAm by Standard and ?oors. Aaa by Moody's or AAA'\/1 + by Fitch . 9. Colorado Local Government Liqu id Assel Trus: (COLOTRUST) as authorized under CRS 24- 75-702 . 10 . Prime Bankers Acceotances, ratod at least A-1 by Stondord & Poor's, P-1 by Moody's and Fl by Filch at the time of purchase :,y at leest two services that rate them and shaU be rated nol less by any s9rvice that ralt1s ll1•111. with a maturity of six months or less issuec on domestic banks or branches of foreign banks domiciled in the U.S. and operating under U .S . banking laws. Accepting banks must ~ave a senior debt rating of A2 by Moody's anu A t,y Standard & Poor's . 11 . Prime Commercial Paper with a 11aturity of 270 days or less wh ·ch , at the time of purchase, Is raled al least A-1 by Standard& Poor's , P-1 by Moody's an:! F-1 by Filch . a) Al the time of purchase . the commercial paper must be rated by at least two of the abot1e stated ra ting agencies at the stal13:d minimum rating . b) If moro !hon two ol the above stated agencies rates an issuer, all of those rating agencies must rote the issuer In accordance with above stated minimum credit criteri;i Page4 c) If II•~ commercr~tl paper 1~r.uo1 tias sen ior debt oul &landing, the senior deb t must he rated IJy each service that publishes a rating on the Issuer as al least Al by MorJdy s , A by Standard and Poor's and A by Fitch . 12 . Curµurale Bonds issued by a corporation or bans wllh a final maturl :y not e.,coeding three years from the date of trade settlement, rated at least AA · by Standard & Poor's, Aa3 by Moody'o, or M by Fitch at tho lime nf purchase by each service thal rates tho debt Aul~ lied corporate bonds shall be U.S. dollar denominated , and limited to corporations organized ~nrt npP.r~lP.ti within the l h1iled StatP.s with a net worth In excess of S250 million . SHcuriliu:; lhul have lJeen cJow11g1ad~cJ IJelow mi nimum rall11gs desc#ibed herein may be sold or held at the City's dlsc•etion . The portfol io will be brough: bee, ,nto compllas ce with l11veslmon l Po :icy guidelines 83 soon 03 is prectical. OTHERtNVESTMENTS rt Is the Intent ol the City 11,at the fnregoino list ol a111hnr i1.ed semirtties he strlc.tly intmpreted . Any rleviation frnrn this list must be pre-approved by the !Jireclor .n writing alter approval by the Cl./ Manager . INVESTMENT 01vrns1r-1CATION ,l is lhe inlon1 of tho City to div9•sify the inveclmont instrume-.ts wit hin :he portfot lo lo avoid Incurring unreasonable risks inherenl In over investing 1n specific instruments, individual flna.,cial institutions or maturities . The asset ,,11ocalio1 in the porffolio should . however, he flexible depending upon the outlook for the economy, the securities market and the City's cash flow ;eeds. The City may invest to the following r,aximum limlta within c □c1 caicgory: 50% in Ccrtllicatca of Dcpoolt 40% in Commercial Panor 2U% in Bankcrr. A:::ccptan:::es 30°/o In Corporate Bonde: 50/o 1n any one issuer or its affiliales or subsidiaries Tes!s tor l 1mitalions on percentages nl holdin[JS apply to the r.nmpnslte ol lhe entire portfolio al the City, not lo Individual portfolios maintained by the City. Percentage llmltatlons used tor measurements are based on the perce11tage of cost valve of tire porlfullo . INVESTMENT MATURITV AND LIQUIDITY lnvcstmer:tc &hall be limited to maturities not exceeding fi\le yoars 1ro:-n the date or trade settlement. In addition, the weigh!ej average final maturity ol lhe total porttolio shall at no time exceed three years SELECTION OF BROKER/DEALERS. The Director st,al1 IT,aintsin a list of brrker/dealers approved for investment purposes (see Appendix Ill), and il shall be the policy of the City lo purchase securities only lr~IT tno,c oulhorizod ''-mo. To be eligible, a firm must meet~! ler1si one ol the following criteria : 1 be recognized as a P,lmary Dealer by the Federal Reserve Bank or New York or have a primary dealer Within lh~lr holding company structure, 2 . report vulu11tarily tu the Federal Reserve Bank of New York, • 3. qualffy under Securities end Exchange Commission (SEC ) Ru ic !Sc-3 (Uniform Net Cepltal • Ruic). Page~ • Broker/dealers will be seleclec by the ::Jlrector on the oasis of 1,eir exoertise in public cash management and their ablUly to prov,dE service 10 the Clly's account Each authorized broker/dealer shall be recuired lo submit and annua ll y update a City approved Broker/Dealer Information Request form wh ch includes the firm's most recent financial statements . In the event that an external Investment acvlsor is not used in the process of recommending a particular transaction in the City's portfolio, any author:zed broker/dealer from whom a competitive bid is oblained for the transaction will attest in wrlling that he/she has received a copy of this policy. The City may purchaae Commercial Paper from direct issuers even though they are nol on the approved list of broker/dealers as long as they r:,eel the criteria ournned In Item 12 of lhe Eligible Investments and Transactions section of lhls Investment Policy. COMPEJJIIYE TRANSACTIONS Each lrvestm~nt transaction shall be comri,,lllivoly transacted wilh authorized broker/oeale·s. At least thre• broke:/dealers ,~~II be cnnlactf!rt fnr ear.I-. lransaclinn ard !heir hid anrt nfforing rrices shall be recorded . If the Cit)' is offered a security for which there Is no other readily available competitive of'ering, than the Director will document quotations for comparable .,r alternative securities . SELECTION OF BA"IKS AS DEPOSITORIES AND PROVIDERS OF GENERAL BANKING SERVICES . Tile Cily shall 111&inlain a list of banks approved to provide banking s•rvices or from whom the Cliy may purcilase cerllficales of deposi :. Banks In lhe judgment cf lhe Direc tor no longer offering adequate safety lo !he City will IJe re1110,ed from the lisl. To be eligible for authorization, a bank shall qualify as a deposllory of public funds 1n Cclorado as defined in CRS 24-75-603. SAFEKEEPING AND CUSTODY The safekeeping and custody of secu,lties owned by the City shall be managed ,n accordance with applicable Federal and Colorado laws and regulations . The Director shall approve o~e or more banks 10 provide safekeeping and custodial services for lhe City. A City approved Safekeeping Agreement shall be execu,ed wit~. each custodian bank pr'or lo utilizing that bank's safekeeping ·services. To be eligible, a bank shall qualify as a depository of public funds .n lhe State of Colorado as defined In CRS 24-75-603 and be a Federal Reserve member financial institution. Custodian hanks will he selected on the basis of their ability lo provide service to the City's account and lhe c,impetilive prici1g of !heir safekeeping related services . Toe City's designated custodian bank is set forth in Appendix IV or th is lnve;tmenl ?olicy. The purchase ar.d sa le of securities and repurchase agroement transactions shall be settled on a delivery versus payment boa is. Ownership of all securities shall be perfected in 1he name of the City, and sufficient evideoce lo title shall be consistent w.lh modern investment, banking and ccmmercial practices . All invesla1enls, except certificates uf deposit and local go,,ernmenl investment pools purchased by the Clly shall be delivered by either buck e11try ur physical delivery and will be ;,eld in third-party safekeeping by the City's designated custodiar, 1Ja111\, ii, correspondent !Jank or lhe Depository Trust Company (DTC) . All fed wireable book en:ry securilies owned by the City shall be evidenced by a safekee,ing receipt or a customer confirmation issued 10 the City by lhe cu;todian bank stating that the Page6 sH curllies me ht:ld 111 the Federal Reserve system in a Customer .t,ccount for !he cuslodlun bank w'1ic 1 will name the City a!) ·custor:1er." AH DTC eligible oecurlties snail be held in thA r.ustnd an han•·s IJeposllory Trust Company (DTCi particioant account and the custodiun bank shall Issue a safekeeping recei~t ev ldencin~ ll·at the securities are held fo 1· the City as "cu~tomer. • All non-book entry (phyo,cat de livery) securities thall be held by the custodian bank's correspondent l::tlnk and the c•Jslodian I 1:m!< shall issue a satekeepirtg rar.eipl lo 1he C1I'." evidencing that the securll es are held by the curitosponde,,t l!a11h for lilt City as ·custom~,.· The Cily's cu !:t odkm will be roq lJirod to furnith the City wit n a monthly re:>0rt of seclJr'.tie:. hel d as wall as an ac count analysis report of monthly ser.11·ll ies activity . PROVISIONS FOR ARBITRAGE Tho City periodic.ally issues debt obligations which are subject lo the p·ovisions of the Ta, Reform Act ?I 1AR6 (s""t,on 1<Mf'), Arbitrage Rebate Regulations , Due to the legal complexllles of arblt:-age law an:i the mtcesscuy irmuunizaUon of yield levels , the proced ur es undertake :, in the re investment of all o:-a porlion of lhe proceeds :,f such debt issuance moy extend :>cyond tho se uuU incd in lhi~ Inves tm ent Poli::;y. The D:rector , t.pon adv ice from Bond Co'Jnsel and financial ad\•isors , may ~IIP.r pmvii;1 ons of this 1n•1estmen t Policy for arb itrage related inves tments as may be necessary to conform wUh federal ar bitr;.ige rngulc1liu1 ·s. In all ca~es , 11uw~v~,. 111v~stments w;u be in compllaoce with Colorado Revised Statutes . This section is only applicab!e lo Cily funds subject to arbitrage rectricUon&. REPORTING • An investment report shall be prepared , at loast on O Monthly baoio, lit;ting tho i1YC!.tmc1ls held by the City, Iha ~urrent market valualion of the investmen ts and performan ce results . The monthly investment report shall be submitted in a timely aianner to the City Manager and the City Council . A re:ord shall be maintained by Iii• □•µ,,r tr nent of F nanc• and Ad minls~·allve Services of all bids and offerhgs for sec•Jrities transactions in order 10 ensure that th e City rocoives competitive pricing. The City has established :eportlng and accountin~ standarcs for calla~la U.S . l11stru 111enla1ity secur.lit,s. Callable secsrlties may be retired at lhe issuer·s opt ion prio• to the stated maximum maturity . All securities holding reports for the Ci:y shall disclose the s:2led maturity as well as the first call dale of each callable security held . In the case of call able sec crlties which are purchased rcleed 10 thP. frrst call date and, in the op inion of the Director, have an overwhelmln~ probablllty of being calla:! on the first call dal", woighleu avarage matcrily, a1rnrtlzatbr as well as yield shall be calculated using the f.rst call date. The Director may, however, chocoe to use a further call doto maturity date lor reporting purposes wh1 o condit ions mandate . e!IBFORMANCE_)3EVIEW The Di ,eclor and the C ity Manogc, shall meet ot least quarterly to review the porttolio'o adherence to oopropriate risk levels and to compare the porttol io's total return to Ihe established investment ob jectives and goals . The Director shall periodically establish a benchmark yield for the City's investments which shell be equal to the overage }'Bid on Iha IJ.S. Treasury security which most dosety corresponds to the portfr;,o ·s actual effective weighlec average maturity. When coaiparing the pertormance of the C ity, porttollo, a\; f""~ and expenses lnvolveo w:th managIn. the portfolio should be Included In • t~, compu1aliun of lht, portfolio's rate of return. • POLICV REVISIONS Thi• lnveslmont Polley ,.;11 be reviewed pel'i odlcally by '.he Dir ector an; may be amonded as condiliuns warrant by the Clty ·M~nager and the City Council. Prepared by : '' ·Frank GrY!llewicz Director of Finance and Administrative Services Approved by City Council Septemaer 17, 1990 Amended by City Council December Hi, 1891 Amended by City Council April 5, 1993 Amended by City Council Juno 20, 2005 Amended by City Council Novembet 3, 2008 State of Colorado, County of Arapahoe : Isl ______________ _ Kevin Engels Accounting Manager Amended by City Council September 5. 1995 Amended by Ci1y Council December 15, 1997 Amended ty City Counci! Februar1• 7 , 2000 Amended by City Council October 16, 2006 Amended by City Councl'. February 19, 2013 I, Loucrishia A. Ellis, City Clerk in and for tho City or En;ilewood, in the State aforesaid, do hereby cartlfy thal the foregoing is a full, true and correct copy of the Investment Policy as the same appears upon the records of my offir:P. whir.ha re in my custody . Given under by hand and official seal , this __ . /Si Loucrish ,a A. Ellis City Cler < APPENDIX I Authorized Personnel T ho following persons are nu tl1orizad lo conduct I1vcslrrcr1t lrammr;hons and wire transler t1mds on hehalf of lhe Cily or En~lewooc : Kevin Engels, Accounting Menoger Kolhy Coccoi, /\ccounlanl II Christine Hart, Accounta nt I) F rrink r~ryulP.wir.z., D1roctor ..,f Fin ance and Adm 1nislratl\le Services • • • APPENDIX II Repurchase Agreements Tne followins fi·ms h ave execute d a City ApprnvA d Master Rop11r~ha~e Agreement with the C ity nf Englowooc . Banc of America Securities, LLC Morgan Slilnl"y OW Inc. Agreemen!s maintained in separate file . APPENDIX Ill Authorized Broker/Dealers and Financial Institutions Th ri follow;ng firms ar~ ap ;noved for invc:i l'Tlcn\ ou rpo~on by the Cit~ of En{jlowood. B<1rclay 5 c:=1r,ilr1I Deutsr.lle Br111k St:ti ;uritle~ 111c. Goldman, Sochs & Co Jcfforiot & Com,any, Inc . J .P. Morgan Securiliss In c Merrill Lyne~. Pierce, i'enner & Smilh Inc Mizuho Securll,e s USA lac . Morgan Keu gan & :::o mpany, Inc . Morgan Slonley Smilh Barmy -Cili~roup Glnh/11 MHrkA IS rtaHnr11 Morgan Slanley Smilh Barney-Morgan Slanley plalform "tBC Caµllal Mar~e ls Corpo ralion UBS F1na 11c ia l Service!'.. :nc . W undorlie h Sec:urities, Inc . Pnge 11 • • • APPENDIX IV Designated Custodial Banks The fol lowing baak is authortzed as the cesignated custodial bank for the City of Englewood : Wells Farge lnstltullonal Retirement and Trusl 17 40 Broadway MAC# C7300-105 Denver, CO 60274 Fage 17 COUNCIL COMMUNICATION Date Agenda llem Subjel"' February 19, 2013 9 C iii Resolution Apprc . •· ·g Proposed Changes tn the City of Englewood Investment Policy Initiated By Staff Source Department of Finance and Admini5trative Frank Gryglewicz, Director of Finance end ~ervices Administrat ive Se,vices COUNCIL GOAL AND PREVIOUS COUNCIL ACTION City Council approved Resolution 84, Series of 201 1 accepting changes anrl uprfates to th e City's lnve~tmelll Pulicy 0 11 O c tober 3, 2011 . The Council discussed ,.,oposed changes to the lnves,ment Policy at the study session held January 28 . 2013 . Staff recommends Council approve the changes and updates 10 the attached Investment Policy. The Investment Polley Is applicable tu the inve~llrrerrt of all fund s not immediately needed for the operating expenditure;/expenses of the City, except for the Fi,efighters Pension Fund, the Volunteer Firefighters Fund, the Police Officers Pension Fund, and the Non-Emergency Employees Pension Fund. • · " Most of the changes involve clarifying language, removing subo rdinated debt from allowable investments, extending the weighted average final maturity of the total portfolio not to exceed three years . updating authorized personnpl, 11rmting hrokr.r/dealers, and information regarding the designated custodial bank. FINANCIAL IMPACT There is no direct financial impact to the City from adopting the proposed changes to the Investment Polley . UST OF ATTACHMENTS • Proposed resolution