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(A) This section authorizes the creation and use of a Natural Resources Donations Reserve as a depository to accumulate funds for costs associated with specific projects of the Natural Resources Board (NRB).
(B) This reserve is classified as an assigned reserve.
(1) Objective. Provide the town’s NRB a mechanism to account for donation funds in one or more fiscal budget years for costs associated with specific projects of the NRB.
(2) Source of funds.
(a) Donated and grant funds from various sources.
(b) All earnings from investments of this reserve shall be redeposited back into this reserve.
(3) Authorized uses. Those costs associated with specific projects recommended by the NRB and approved through the town’s standard expenditure approval process.
(4) Administration. This section authorizes the Town Clerk to deposit, withdraw and pay obligations that are in full compliance with this chapter.
(Prior Code, § 3.A06.039) (Ord. 2018-14, passed 10-24-2018)
INVESTMENT POLICY
The intent of the investment policy of the town is to define the parameters within which funds are to be managed. In methods, procedures and practices, the policy formalizes the framework for the town’s investment activities that must be exercised to ensure effective and judicious fiscal and investment management of the town’s funds. The guidelines are intended to be broad enough to allow the Investment Board to function properly within the parameters of responsibility and authority, yet specific enough to adequately safeguard the investment assets.
(Prior Code, § 3.A08.010) (Ord. 2018-22, passed 12-12-2018)
(A) The investment program shall be operated in conformance with federal, state and other legal requirements, including W.S. § 9-4-820, W.S. § 9-4-821 and W.S. § 9-4-831(h).
(B) The governing body of the town shall be the Mayor and Town Council.
(Prior Code, § 3.A08.020) (Ord. 2018-22, passed 12-12-2018)
(A) This policy applies to activities of the town with regard to investing the financial assets of all funds. In addition, funds held by trustees or fiscal agents are excluded from these rules; however, all funds are subject to regulations established by the state. The covered funds, and any new funds created by the town, unless specifically exempted by the Oversight Board and this policy, are defined in the town’s Comprehensive Annual Financial Report.
(B) Note that any excluded funds such as employee retirement funds, proceeds from certain bond issues and foundation or endowment assets are covered by separate policies.
(C) Except for funds in certain restricted and special funds, the town commingles its funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
(Prior Code, § 3.A08.030) (Ord. 2018-22, passed 12-12-2018)
The primary objectives, in priority order, of investment activities shall be the following:
(A) Legality. Conformance with state law and other pertinent legal restrictions upon the municipality, if any;
(B) Risk adversity. Investments that seek to prioritize the preservation of capital and safety of principal ahead of maximizing investment returns in the various fund portfolios;
(C) Liquidity. Liquidity requirements that allow flexibility to meet anticipated and unanticipated expenditures;
(D) Fund individuality. Recognition of differing objectives and needs of various fund portfolios while emphasizing an acceptable rate of return;
(E) Diversification. Diversification by factors such as asset class, market and credit risk, and tax treatment, in order to reduce the volatility of returns and improve the overall efficiency and resilience of the various fund portfolios;
(F) Rate of return. Earn an acceptable rate of return on investments based on predetermined index benchmarks yet consistent with the foregoing objectives; and
(G) Community. Use of local banks and other financial service businesses to support and bolster our community, but not at the expense of sacrificing any aforementioned consideration.
(Prior Code, § 3.A08.040) (Ord. 2018-22, passed 12-12-2018)
(A) The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control any further deterioration.
(B) The “prudent person” standard states that “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.”
(Prior Code, § 3.A08.050) (Ord. 2018-22, passed 12-12-2018)
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