(A) Purpose. To provide guidelines for investment of funds by authorized officials of the city.
(B) Policy. The city follows generally accepted accounting principles (GAAP) for municipalities. The city values the investment of assets in the local community. Therefore, it will make every effort to invest in local financial institutions. The investment policy will be reviewed annually by the City Council, and any policy changes will be approved by resolution of the Council.
(C) Authority/responsibility.
(1) Officials with investment authority are the Mayor and City Council, the Audit Review Committee, Chief Finance Officer, and other designated staff members.
(2) Assigned responsibilities:
(a) Mayor and City Council: annual review of investment policy authority designations;
(b) Mayor and Audit Review Committee: review investment activities as needed (changes occur; rates, maturities, and the like) but not less than twice each year; and
(c) Chief Finance officer/designee: implementation of policies, including transactions and reporting.
(D) Procedure.
(1) Management of investments shall recognize:
(a) Long- and short-term cash and investment needs;
(b) Investment diversification to credit or interest rate risk;
(c) Safety of principal; and
(d) Investment requirements and restrictions.
(2) Decisions regarding investment activities will be made by the Chief Finance Officer along with the Mayor and Audit Review Committee in compliance with approved investment policy. Any changes will be reported to the City Council at the next following regular Council meeting.
(3) Approved investment vehicles:
(a) Bank savings, money market demand (MMDA), and certificates of deposit;
(b) Oregon State Treasury and local government investment pool; and
(c) County Treasurer (sanitary bond account required by statute).
(4) Based upon adopted budget, investments will be aligned with cash flow needed throughout the year for disbursements and fund transfers. These funds are invested short-term: funds held in interest bearing accounts which are available on demand and may be withdrawn at any time without penalty.
(5) Based upon adopted budget, funds in excess of known cash needs and reserve funds may be invested long-term: funds held in interest bearing accounts with maturities of one year or less. No investment will exceed a one year (365-day) maturity.
(Res. 402, passed 4-20-2010)