HomeMy WebLinkAbout6364 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
}