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(A) The City Clerk/Treasurer shall maintain a list of financial institutions authorized to provide investment services to the city. In addition, a list shall be maintained of approved security brokers/dealers selected by creditworthiness, who maintain an office in the Commonwealth of Kentucky.
(B) All financial institutions and broker/dealers who desire to provide investment services to the city shall supply the City Clerk/Treasurer with information sufficient to adequately evaluate the institution and answer any and all inquiries posted by the City Clerk/Treasurer or the governing body, including the following information:
(1) Audited financial statements;
(2) Regulatory reports on financial condition;
(3) Written memorandum of agreement for the deposit of public funds or trading resolution, as appropriate;
(4) Proof of National Association of Security Dealers certification and proof of state registration;
(5) Any additional information considered necessary to allow the City Clerk/Treasurer to evaluate the creditworthiness of the institution.
(C) No financial institution shall be selected as a depository of the city’s funds if the city funds on deposit at any time will exceed five percent (5%) of the institution’s capital stock and surplus.
(D) The City Clerk/Treasurer shall evaluate the financial capacity and creditworthiness of financial institutions and broker/dealers prior to the placement of the city’s funds. The City Clerk/Treasurer shall conduct an annual review of the financial condition and registrations of financial institutions and broker/dealers and, based on the review, make any recommendations regarding investment policy or program changes determined to be necessary.
(Ord. 94-38, passed 11-8-94)