33.01(A) Requirements. The
is highly risk averse in its investment strategy and as such will not purchase any individual security rated lower than the third highest tier (e.g., A-rated) by at least one nationally recognized rating agency in the United States (e.g., Moody's, S&P, Fitch's). U.S. Treasury obligations which carry the full faith and credit of the United States Government, U.S. Government agency obligations, U.S. Government instrumentality obligations, or any other debt instrument which carries the full faith and credit of the United States Government or the Federal Deposit Insurance Corporation are exempt from the previously stated rating requirement. In addition, the
will only purchase securities with book yields exceeding the maturity-equivalent Municipal AAA yield, adjusted on a tax equivalent basis.
33.01(B) Investments. Consistent with the Government Finance Officers Association Best Practices concerning Treasury and Investment Management, the following investments shall be permitted by this section and are those defined by state and local law where applicable:
33.01(B)(1) U.S. Treasury obligations which carry the full faith and credit of the United States Government and are considered to be the most secure instruments available.
33.01(B)(2) U.S. Government agency and instrumentality obligations that have a liquid market with a readily determinable market value.
33.01(B)(3) Obligations of state and local governments, including their agencies and authorities, either directly or indirectly.
33.01(B)(4) Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1) by a nationally recognized rating agency.
33.01(B)(5) Repurchase agreements collateralized by U.S. Treasury or Government agency and instrumentality securities.
33.01(B)(6) Money market mutual funds regulated by the Securities and Exchange Commission rated in the highest tier by a nationally recognized rating agency and whose portfolios consist of only dollar denominated securities.
33.01(B)(7) Demand deposit accounts, interest bearing time deposits, money market accounts or savings accounts in qualified public depositories, including negotiable certificates of deposit, as defined in F.S. § 280.02.
33.01(B)(8) Obligations of any corporate institution (excluding life and casualty insurance companies).
33.01(B)(9) Mortgage-backed Securities (MBS), Collateralized Mortgage Obligations (CMO's) or Asset-backed Securities (ABS) containing fixed or adjustable-rate mortgages or assets issued by any U.S. Government agency or instrumentality or any corporate institution (excluding life and casualty insurance companies).
33.01(B)(10) Obligations of any sovereign government issued via the U.S. Agency for International Development and guaranteed by the full faith and credit of the U.S. Government.
33.01(B)(11) The Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act of 1969, as provided in F.S. § 163.01.
33.01(C) Prohibition on investments in derivative contracts. This section does not provide authorization for investment in derivative contracts as defined by the Governmental Accounting Standards Board (GASB), which defers to the Federal Accounting Standards Board (FASB) on its definition of a derivative security. The FASB definition of a derivative security, as provided in Statement 133, Paragraph 6-7, is provided in the Appendix preceding the Investment Policy glossary. This section also does not provide authorization for the purchase of private placement or 144A securities as defined by the Securities and Exchange Commission (SEC).
(Ord. 2016-02, passed 2-1-2016; Am. Ord. 2018-09, passed 6-18-2018; Am. Ord. 2022-02, passed 12-5-2022)