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6364 RESOLUTION NO. 6 , 364 A RESOLUTION ADOPTING AN INVESTMENT POLICY FOR THE CITY OF LITTLE ROCK AUTHORIZING INVESTMENTS IN LOCAL BANKS ; AND FOR OTHER PURPOSES. WHEREAS, Assistant City Manager, Jack Murphy, has prepared a draft of an investment policy whereby the City will invest funds with local banks in an equitable manner. 4# NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF A DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS : H SECTION 1 . The Board of Directors of the City of Little Rock hereby adopts an investment policy for the City. v The Investment Policy Draft is attached hereto as Exhibit A and is hereby made a part hereof. SECTION 2 . This resolution shall be in full force and effect from and after its adoption and approval . ADOPTED: June 17 , 1980 /i" ATTEST: Arid � APPROVED: /�/�/�/ /� (City Clef / Mayor ••I •. DRAFT CITY OF LITTLE ROCK TENTATIVE INVESTMENT POLICY In order to invest City funds with local banks in an equitable manner, the following investment provisions have been formulated for a trial period: 1 . Banks Included - (6) Six Little Rock banks . 2 . Equivalent Interest Yield - No investment will be made with a local bank unless the interest yield to maturity to be paid by the bank is within 1/10 of 1% of the 1 interest yield that can be obtained from a U. S. Government investment for a similar amount invested for the same time period. When a question arises , rates for Government Securities will be determined by contacting a disinterested party who shall quote rates for the same size investment with the same maturity or using the latest published financial data. 3 . Investments Less Than $100 , 000 - In order to keep adminis- trative costs as low as possible , investments of less than $100 , 000 in any fund will be made through the current depository bank in either Repurchase Agreements or Government Securities . 4 . Repurchase Agreement Security - Any Repurchase Agreement entered into by the City and a bank must be secured by U. S. Government or agency securities at 100% of market value or Arkansas Municipal Bonds (direct obligations) at 120% of face value or a combination of both. 5 . Bidding Procedures - For investments exceeding $100 , 000 in amount, the six local banks will be contacted by telephone and given the amount and length of potential investments and asked for an interest yield quote by return telephone call within (30) thirty minutes . The .bank offering the highest interest yield in accordance with other requirements will be notified of the City' s investment decision immediately after evaluation of the bids . : */ ° '` r 6 . Tie Bids - In the event of identical interest yield bids , the City may break the tie by use of an objective method to be determined by the City. 7 . Limit on Amount Invested With One Bank - At no time will the amount of funds invested with any bank exceed 20% of stockholders equity at the last certified bank call unless such excess of 20% is secured by a pledge of obligations of the U. S. Government or its agencies . . 8 . CD' s - Repos - In order to provide for unforeseen cash needs, all investments will be conditioned upon at least 10% of the investment being in Repurchase Agreements . The remaining 90% would be in Certificates of Deposit. If this provision proves unworkable the City may, where it is likely that funds from an investment may be needed prior to maturity, invest in Government Securities in order to provide the required liquidity. 1 9 . Safekeepina Receipts for investments will be acceptable , by the City in order to reduce administrative costs . I i I 4 I 2 3 I I I I a y .e a 1 z 1 1 1 9 9 3 k 4 I 1 }