The county hereby authorizes the County Treasurer and the County Judge/Executive to invest the county’s funds, pursuant to the terms and conditions of this section. Nothing in this section shall be construed to deprive the Fiscal Court of the power to specifically direct the investment of the county’s funds pursuant to KRS 66.480.
(A) Funds not needed for current expenses or obligations of the county may be invested in any of the following:
(1) Obligations and contracts for future delivery or purchase of obligations backed by the full faith and credit of the United States or a U.S. Government agency, including but not limited to:
(a) The U.S. Treasury;
(b) The Export-Import Bank of the U.S.;
(c) The Farmers Home Administration;
(d) The Government National Mortgage Corporation; and
(e) The Merchant Marine bonds.
(2) Obligations of any corporation of the U.S. Government, including but not limited to:
(a) The Federal Home Loan Mortgage Corporation;
(b) The Federal Farm Credit Banks;
(c) The Bank for Cooperatives;
(d) The Federal Intermediate Credit Banks;
(e) The Federal Land Banks;
(f) The Federal Home Loan Banks;
(g) The Federal National Mortgage Association; and
(h) The Tennessee Valley Authority.
(3) Certificates of deposit or other interest-bearing accounts of any bank or savings and loan institution which are insured by the Federal Deposit Insurance Corporation or similar entity and which are collateralized to the extent uninsured, by any obligations permitted by KRS 41.240(4);
(4) Bonds or certificates of indebtedness of the commonwealth and of its agencies and instrumentalities; and
(5) Securities issued by a state or local government, or any instrumentality or agency thereof, in the United States, and rated in one of the three highest categories by a nationally-recognized rating agency.
(B) The investment authority outlined above shall be subject to the following limitations:
(1) The amount of money invested at any time by the county in one or more of the categories of investments authorized by divisions (A)(3) through (A)(5) above shall not exceed 50% of the total amount of money invested by the county; and
(2) The county shall not purchase any investment on a margin basis or through the use of any similar leveraging technique.
(C) (1) The county hereby adopts the standards for written agreements pursuant to which investments are made.
(2) The following are the standards for written agreements pursuant to which investments are made.
(a) Authorization is hereby given that written agreement shall be signed by the County Judge/Executive or County Treasurer.
(b) The signatories shall be granted hereby the sole authority to execute said written agreements.
(c) All such agreements shall be presented to the County Fiscal Court at the next meeting following the execution of said agreement.
(D) The county hereby adopts the following procedures for monitoring controls, deposit, or retention of investments and collateral.
(1) The County Treasurer shall make quarterly reports to Fiscal Court on the status of the investments.
(2) The depository for items in divisions (A)(3) through (A)(5) above shall be an account established directly with the Federal Reserve Bank or a local institution agreed upon by the County Judge/Executive and County Treasurer.
(Ord. 215, passed 2-1-1995; Ord. 218, passed 3-15-1995)