Whenever there are moneys in the treasury which will not be required to be used for a period of six months or more, such moneys may, in lieu of being deposited in a bank, be invested in obligations of the City, in bonds or other obligations of the United States or those for the payment of principal and interest of which the faith of the United States is pledged, discount notes of the Federal National Mortgage Association, bonds issued by the Home Owners' Loan Corporation pursuant to the Home Owners Loan Act of 1933, 48 Stat., 128, 12 U.S.C. 1461 and the amendments thereto, bonds of this State, and bonds of any municipal corporation, village, county, township or other political subdivision of this State, as to which there is no default of principal, interest or coupons. Such investments shall not be made at a price in excess of the current market value of such bonds or other interest-bearing obligations. Such bonds or other interest-bearing obligations may be sold for cash and for a sum not less than their current market price, in the manner prescribed as follows:
(a) Investment Authorized; Limitation; Procedure. Whenever the money in the treasury is to be invested as provided for per the above, the Director of Finance shall submit to the Mayor and the Director of Law, a statement of moneys in the treasury or in the process of collection, and a schedule showing the probable requirements of money for the use of the City for a period of not less than six months, as per above, or as the Mayor directs, together with a recommendation as to whether any moneys in the treasury shall be invested in such obligations.
The Mayor, the Director of Law, and the Director of Finance may thereupon order such investments, at not more than the current market value, as they deem advisable, in the interest of the City. It is unnecessary to advertise before such investment is made. No investment shall be made except in obligations which have been passed upon and approved as to validity by a reputable firm of bond attorneys. Whenever it is necessary to convert any investment into cash, it shall be done by first offering the obligations held by the City to the Bond Retirement Fund, and if the Bond Retirement Fund declines to take any of them, they shall be sold in any manner authorized by law for the sale of investments by the bond retirement fund. No such obligations shall be sold for less than the current market value.
(b) Treasury Investment Account; Duty of Director of Finance. The Director of Finance shall maintain an account to be known as the Treasury Investment Account in which he shall enter all transactions relating to the investment of treasury funds, as per above. He shall maintain a record showing all bonds or other securities purchased or sold for the treasury account, with the number, maturity, date and interest rate of each. Such Director of Finance shall keep a record of the number and maturity of interest coupons and whenever any such securities or interest coupons are due he shall issue his order for their collection in the same manner as other receipts are collected.
(Ord. 1-54. Passed 1-12-54; Ord. 106-68. Passed 10-14-68.)
Net interest earned from investments by the Treasury Investment Board shall be distributed by the Director of Finance. Interest earned by all water, sewer and sanitation funds shall be prorated to those funds at regular intervals. All other interest earned shall be distributed to the General Fund, except where otherwise provided for in the Codified Ordinances or by Federal law. (Ord. 7-88. Passed 1-25-88.)
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