CITY COUNCIL AGENDA ITEM
Memo Date: January 16, 2024
Agenda Date: January 23, 2024
Prepared By: Rebecca Bowman, MBA, CGFO, CGFM
Through: Stockton Whitten, City Manager
Requested Action:
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Approval of a revised Investment Policy via Resolution No. 2024-XXXEnd
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BACKGROUND:
The City adopted an Investment Policy via Resolution 2010-101 at its regularly held meeting on July 27, 2010. The Investment Policy sets forth the investment objective and parameters for the management of public funds of the City. The primary objectives of Florida governmental investments in order of priority per Florida Statute are: safety, liquidity and yield. The City Council further updated the Investment Policy on July 24, 2019 via Resolution 2019-066, incorporating necessary changes to allocations of investments, performance benchmarks and definitions. The policy is designed to safeguard the City's funds, ensure the availability of operating and capital funds, when needed, and provide for an investment return competitive with comparable funds and financial market indices.
It is necessary to review the overriding financial policies such as the Investment Policy on a periodic basis to ensure that the information is the most current and applicable. Staff has currently reviewed the existing Investment Policy with the City's investment manager, Public Trust Advisors, and desires to make some changes to the policy. Attached to this agenda item is a copy of a red-lined existing policy, noting the changes to the policy, and a "clean" version of the policy with the revisions. Some of the significant changes to the policy are:
A change in the Maximum Issuer Limit for Federal Instrumentalities from 40% to 25% to match the Maximum Issuer Limit for Government Agencies.
Incorporation of Florida Statutes Sec. 218.415(24)(a) regarding investment decisions being based on pecuniary (monetary investment returns) factors and not on the interests of the beneficiaries of the investment...
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