(1) Urban county government agencies, as used in this section, shall include but not be limited to the agencies and instrumentalities listed in Chapter 2 of this Code.
(2) The following investment policy shall be mandatory for all urban county government agencies:
(a) Objectives: Capital preservation with surety of income. Reasonable competitive income consistent with high investment quality and purpose of funds. All investments shall conform with state and local law and regulations and these policies.
(b) Investment funds management: The governing board may elect to either:
(i) Manage its investments through its executive director where the size or complexity of funds to be managed is deemed by the board to be within the training, expertise and/or available time capacity of the executive director and the operating staff; or
(ii) Utilize the professional investment management facilities of a local bank trust department acting in a fiduciary capacity within the same approved investment policies and federal, state, local and trust laws and regulations. The trust department may utilize its regular short-term one hundred (100) percent U.S. Treasury Fund for daily funds investment.
The election of option (i) or (ii) should be made consistent with the relative cost incurred, and in the case of option (ii) the cost shall be competitive among local trust departments.
(c) Investment policies; safety and prudence:
(i) Short-term liquidity funds shall be invested in "riskless" investments, i.e. deposits in Kentucky commercial banks or savings and loan associations that are fully federally insured or deposits collateralized by U.S. treasury securities with a current market value of at least one hundred (100) percent, or in direct obligations of U.S. treasury securities.
Investments shall be diversified according to maturity in order to meet projected cash flow needs.
Collateral pledged to secure uninsured deposits shall be held at a federal reserve bank with the receipt providing absolute control by the agency.
(ii) Retirement funds, endowment funds, long-term capital reserve funds and any other special funds may be held and invested by a local bank trust department under investment objectives and diversification in accordance with the individual nature of the funds and pursuant to the "prudent man" investment rule as well as general trust law.
(iii) All investments shall be reviewed monthly by a finance or investment committee of the agency.
(iv) Local brokerage firms may hold and invest funds provided that investments are located within Kentucky and are fully insured.
(d) Audit: All investments shall be audited at least annually by independent certified public accountants who shall express an opinion as to whether or not investments during the year audited have conformed with state and local law and regulation and with the approved investment policies.
(3) To the extent that this section may conflict with a state statute or rule of law, the section shall be deemed inoperative to the extent of the conflict, and shall be deemed modified to conform to such statute or rule of law.
(Ord. No. 197-84, § 1, 11-1-84)