(A) Investment types and credit guidelines. Consistent with the GFOA Policy Statement and Kentucky laws and city ordinances concerning investment practices, the investments as defined by KRS 66.480 are allowed. KRS 66.480(2) restricts overall investment in KRS 66.480(1)(e), (f), (g), (k), and (l) of the following types of securities to 20% of total local government investments:
(1) U.S. government obligations and instrumentalities, including obligations subject to repurchase, if delivery of these obligations is taken directly or through an authorized custodian;
(2) U.S. Treasury and other U.S. government obligations that carry the full faith and credit guarantee of the United States for the payment of principal and interest;
(3) Federal agency or U.S. government-sponsored enterprises (GSE) obligations, participations or other instruments;
(4) CDs issued by or other interest-bearing accounts of any bank or savings and loan institution having a physical presence in Kentucky and that are insured by the Federal Deposit Insurance Corporation or similar entity or that are collateralized by any obligations, including surety bonds, permitted by KRS 41.240;
(5) Uncollateralized CDs issued by any bank or savings and loan having a physical presence in Kentucky rated in one of three highest categories by a competent rating agency;
(6) Bankers' acceptances, which must be rated in one of the three highest categories by a competent rating agency;
(7) Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a competent rating organization;
(8) Bonds or certificates of indebtedness of this state and of its agencies and instrumentalities;
(9) Investment-grade obligations of state or local governments or instrumentality thereof rated one of three highest categories by a competent rating agency;
(10) Shares of mutual funds and exchange traded funds as identified by KRS 66.480(1)(j);
(11) Individual equity securities if the funds are managed by a professional investment manager regulated by a federal regulatory agency and are included within the S&P 500 pursuant to KRS 66.480(1)(k); and
(12) Individual high-quality corporate bonds managed by a professional investment manager pursuant to KRS 66.480(1)(l).
(B) Limitation on investment transactions. With regard to the investments authorized in this section, no investments shall be purchased for the City of St. Regis Park on a margin basis or through the use of any similar leveraging technique. Further, the Mayor, Treasurer and City Clerk may, by themselves, purchase or redeem, bonds, securities, mutual funds, money markets or other eligible investments in a transaction or combination of transactions up to and including $150,000 in any given consecutive 30 day period. Any investment transaction or combination of transactions that exceed $150,000 in the aggregate during a consecutive 30 day period will require the authorization of at least two of: (i) the Mayor; (ii) Treasurer; and (iii) City Clerk. All funds generated from redemptions of eligible investments ("redemption funds") at a given financial institution shall either be: (i) deposited into a money market or cash account that satisfies the conditions of this subchapter hereof and that is held in the name of the city at the applicable financial institution; or (ii) disbursed by the applicable financial institution to the City of St. Regis Park's general operating bank account (the "operating account") by ACH or wire transfer pursuant to the ACH or the wire transfer instructions, as applicable, set forth in the most recent incumbency and fund disbursement instruction certificate provided to such financial institution in accordance with this subchapter. In furtherance of the foregoing, in no event shall a financial institution transacting business with the city disburse any redemption funds other than in accordance with item (i) or (ii) of the preceding sentence including, without limitation, disbursing any redemption funds via paper check or via wire transfer, ACH or other electronic funds transfer to any account other than the operating account.
(Ord. 3, Series 2021-2022, passed 8-3-2021)
Statutory reference:
Similar state law, see KRS 66.480(1)(a) through (i)