HomeMy WebLinkAbout1998-178 Council ResolutionCouncil Member Bergeson
introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 98- 178
RESOLUTION AMENDING THE CITY OF LINO LAKES
INVESTMENT POLICY
WHEREAS, The original investment policy was adopted per Resolution No. 29-91 and amended per
Resolution No. 97-149, and
WHEREAS, the policy delegates authority for investment management to the Finance Director, and
WHEREAS, the Finance Director position has been abolished and replaced by the Financial Analyst
position, and
WHEREAS, the responsibility for cash and investment management is defined within the job description
for the Financial Analyst.
NOW THEREFORE BE IT RESOLVED, by the Lino Lakes City Council that the City Investment Policy be
amended to authorize "the appointed investment officer" in place of the "Finance Director".
BE IT FURTHER RESOLVED by the Lino Lakes City Council that the appointed investment officer is
designated by and within the job description of the Financial Analyst.
Adopted by the Lino Lakes City Council this 21st day of December 19
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ilyn n G. ,4nderson Clerk -Treasurer
The motion for the adoption of the foregoing resolution was duly seconded by Council Member Lyden
and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Dahl, Lyden,
Neal, Sullivan.
The following voted against same: none
Where upon said resolution was declared duly passed and adopted:
3. Yield The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into account the
investment risk constraints and liquidity needs. Return on investment is of secondary importance
compared to the safety and liquidity objectives described above. The core of investments are
limited to relatively low risk securities in anticipation of earning a fair return relative to the risk
being assumed. Securities shall not be sold prior to maturity with the following exceptions:
* A security with declining credit may be sold early to minimize loss of principal.
* A security swap would improve the quality, yield, or target duration in the portfolio.
* Liquidity needs of the portfolio require that the security be sold.
III. Standards of Care
1. Prudence The standard of prudence to be used by investment officials shall be the
"prudent person" standard and shall be applied in the context of managing an overall portfolio.
Investment officers acting in accordance with written procedures and this investment policy and
exercising due diligence shall be relieved of personal responsibility for an individual security's
credit risk or market price changes, provided deviations from expectations are reported in a
timely fashion and the liquidity and the sale of securities are carried out in accordance with the
terms of this policy.
Investments shall be made with judgment and care, under circumstances then prevailing, which
persons of prudence, discretion and intelligence exercise in the management of their own affairs,
not for speculation, but for investment, considering the probable safety of their capital as well as
the probable income to be derived.
2. Delegation of Authority Authority to manage the investment program is granted to
the Finance Director investment officer and appointed employee in cases of his/her
unavailability. [hereinafter referred to as investment officer].. Responsibility for the operation of
the investment program is hereby delegated to the investment officer, who shall act in accordance
with established written procedures and internal controls for the operation of the investment
program consistent with this investment policy. Procedures should include references to:
safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer
agreements, and collateral/depository agreements. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures established by
the investment officer. The investment officer shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of subordinate
officials.
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