Resolution 4545 - Investment Policy2094 ---
RESOLUTION NO. 4545
A RESOLUTION FORMALIZING THE INVESTMENT POLICY OF THE CITY OF
KALISPELL, MONTANA.
WHEREAS, the City is restricted by State law as to the kind
of investments that City funds can be invested in,
WHEREAS, the City has not formally adopted its own policy,
WHEREAS, the City has the authority to adopt its own policy,
and
WHEREAS, the City will only invest in Legal Montana
Investments.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF KALISPELL, MONTANA AS FOLLOWS:
SECTION I. That the attached Exhibit "A" will become the
formal investment policy of the City.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AND SIGNED BY THE MAYOR THIS 20th DAY OF MARCH, 2000.
Wm.'E Xafiarski
Wm. E. Boharski
Mayor
ATTEST:
-t'14A A -
'� —'-0—dq0' �W� —
eresa White
City Clerk
1
1
1
Exhibit "A" �y
Investment Policy of the City of Kalispell L
095
The City of Kalispell will use repurchase agreements in the City investment program, unless a
financial institution agrees to pledge securities in the amount of:
(1) 100% of such deposits if the institution in which the deposit is made has a net
worth to total assets ratio of less than 6%; or
(2) 50% of such deposits if the institution in which the deposit is made has a net
worth to total assets ratio of 6% or more and has filed with the City Finance
office its latest financial statement demonstrating such ratio.
If repurchase agreements are used, securities will be purchased by the City of Kalispell subject
to repurchase by the investing institution.
The following types of securities will be acceptable to meet pledging requirements or will be
purchased by the City under the repurchase agreements. MCA17-6-103
(1) Direct obligations of the United States Government.
(2) Securities as to which the payment of principal and interest is -t intee;: � ;w
United States Government.
(3) Securities issued for fully guaranteed by the following agencies of the United
States Government, or their successors:
a. Commodity Credit Corporation;
b. Federal Home Loan Mortgage Corporation;
C. Federal Land Bank;
d. Bank for cooperatives;
e. Federal Home Loan banks;
f. Federal National Mortgage Association;
g. Government National Mortgage Association;
h. Small Business Administration;
i. Federal Housing Administration.
(4) General obligation bonds of the State of Montana, or of any county, city or school
district within the State of Montana.
(5) General Obligation bonds of other states and municipalities, counties, and school
districts of other states; provided, however, that any such out-of-state bonds must
be rated BAA or higher by Moody's, or its equivalent if rated by another agency.
(6) Revenue bonds of any county, city or other political subdivision of the State,
when backed by the full faith and credit of the subdivision or when the revenue
pledged to the payment of the bonds is derived from a water or sewer system and
the issuer has covenanted to establish and maintain rates and charges for the
system in an amount sufficient to produce revenue equal to at least 125% of the
average annual principal and interest due on all bonds payable from the revenue
during the outstanding term of the bonds;
(7) Interest -bearing warrants of the State or of any county, city, school district or
other political subdivision of the State issued in evidence of claims in an amount
that, with all other claims on the same fund, does not exceed the amount validly
appropriated in the current budget for expenditure from the fund in the year in
which they are issued.
The Finance Office is encouraged to deposit funds in such a manner as to maximize the amount
of investments that will be federally insured.
Public money not necessary for immediate use shall be offered on a bid basis to banks and
savings and loan institutions located within the City of Kalispell and will be deposited with the
high bidder(s) upon confirmation that such a bidder(s) has pledged securities to the City in the
amount required above or has deposited sufficient qualifying securities to effect a repurchase
agreement.
The City will reserve the option to invest in U. S. Treasury bills, qualifying securities guaranteed
by the United States Government, or the State of Montana Investment Pool (STIP).
Securities which are either pledged or are the subject of repurchase agreements must be in the
possession of an independent third party and that third party (i) must be bonded in an amount at
least equal to the amount of the repurchase agreement, and (ii) must affirm to the City Finance
office that the securities are in its possession.
The City shall take the necessary and appropriate steps to implement and administer this policy.