(A) No financial institution shall be selected as a depository of city funds if the city funds on deposit at any time will exceed 10% of the institution’s capital surplus and stock. The Mayor shall evaluate the financial capacity and creditworthiness of financial institutions prior to the placement of the city funds and each shall comply with the requirements of KRS 91A.060 for qualifying official depositories. The Mayor (with assistance of the City Council) shall conduct an annual review of the financial condition and registrations of financial institutions and based on the review, make any recommendations regarding investment policy or program changes determined to be necessary to the City Council, who shall consider and may vote to approve or disapprove such recommendations.
(B) A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Council (SEC) Rule 15C3-1 (Uniform Net Capital Rule).
(1) The designated officials shall determine which financial institutions are authorized to provide investment services to the city. Institutions eligible to transact investment business with the city include:
(a) Primary government dealers as designated by the Federal Reserve Bank;
(b) Nationally or state-chartered banks;
(c) The Federal Reserve Bank;
(d) Direct issuers of securities eligible for purchase; and
(e) Kentucky League of Cities Investment Pool Plus.
(2) Selection of financial institutions and broker/dealers authorized to engage in transactions with the City of St. Regis Park shall be at the sole discretion of the city.
(3) All brokers/dealers who desire to become qualified for investment transactions must supply the following (as appropriate):
(a) Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines;
(b) Proof of state registration;
(c) Completed broker/dealer questionnaire (not applicable to certificate of deposit counterparties); and
(d) Certification of having read, understood, and agreed to comply with the entity's investment policy and evidence of adequate insurance coverage.
(4) All financial institutions who desire to become depositories must supply the following (as appropriate):
(a) Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines;
(b) Proof of state registration; and
(c) Evidence of adequate insurance coverage.
(Ord. 8, Series 2013-2014, passed 6-3-2014; Ord. 3, Series 2021-2022, passed 8-3-2021)