(A) Except as set forth in subsection (B) of this section, it is the policy of the city to require that all cash and investments maintained in any financial institution named as a depository be collateralized. In order to anticipate market changes and provide a level of security for all funds, the collateralization level shall be 100% of the market value of principal, plus accrued interest. Collateral shall always be held by an independent third-party custodian with whom the city has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the city and retained by the City Treasurer. The right of collateral substitution is hereby granted.
(B) Subject to the following conditions, the City Treasurer may invest funds in uncollateralized certificates of deposit:
(1) The City Treasurer may invest in uncollateralized certificates of deposit only with the specific approval of the governing body.
(2) The uncollateralized certificates of deposit must be issued by a bank or savings and loan institution rated in one of the three highest categories by a nationally recognized rating agency.
(3) The amount of funds invested in collateralized certificates of deposit shall not exceed 20% of the city’s total investment portfolio.
(4) The maximum term to maturity of uncollateralized certificates of deposit shall not exceed two years.
(Mun. Order 2015-13, passed 12-7-15)