2018-01 Investment Policy RevisionORDINANCE NO. 2018-01
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, AMENDING ARTICLE I, "IN GENERAL,"
OF CHAPTER 2, "ADMINISTRATION," OF THE VILLAGE CODE OF
ORDINANCES BY AMENDING SECTION 2-4, "INVESTMENT POLICY OF
THE VILLAGE," TO REVISE THE PERCENTAGES APPLICABLE TO
SHORT-TERM PORTFOLIO INVESTMENTS; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, after consultation with the Village Audit Committee and the Village's Investment
Advisor, Village Administration recommended revising the Village's Investment Policy, as set
forth in Section 2-4 of the Village Code of Ordinances, to revise the percentages applicable to
the Village's Operating Funds (Short -Term Portfolio) Permitted Investments; and
WHEREAS, Village Council determines that the adoption of this Ordinance is in the best
interests of the health, safety and welfare of the Village and its residents.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTH PALM BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are ratified as true and correct and are incorporated herein.
Section 2. The Village Council hereby amends Chapter 2, "Administration," Article I, "In General,"
of the Village Code of Ordinances by amending Section 2-4, "Investment Policy of the Village,"
to read as follows (additional language is underlined and deleted language is str-ie a throb ):
Sec. 2-4. - Investment policy of the village.
(i) Portfolio composition. The following are the limits for investments
and limits on security issues, and maturities in the portfolio. The chief financial
officer has the option to further restrict investment in selected instruments, to
conform to the present market conditions.
Note: The table below defines two (2) types of village investments, "operating"
and "core":
Operating: Those liquid funds necessary to conduct routine village
activity, in addition to an amount determined by the village council and
administration sufficient to cover emergency situations and unforeseen
capital expenditures.
Core: All funds not included in operating funds. In general, these funds
can be invested in issues with longer-term maturities.
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These terms shall be defined and the amounts will be designated at least once a
year during the village budget discussions. Changes during a year shall only be
/ made by resolution of the village council. These changes will apply to the end of
j the current fiscal year and must be reconfirmed or changed as needed during the
next annual budget process.
Table insets:
Operating Funds (Short -Term Portfolio) Permitted Investments:
Authorized
Sector
Sector
Per Issuer
Minimum Ratings
Maturity
Investments
Maximum (%)
Minimum (%)
Maximum (%)
Requirement
Range
8.33%
Banks - Interest-
bearing checking
100%
(1/12 of annual
50%
N/A
N/A
Village operating
or savings accounts
budget)
Non -Negotiable
91.67%u,
(11/12 of annual
Certificate of
Village operating
0%
33.33%
N/A
30 days
Deposits
budget)
Highest Fund
Florida Local
Rating by all
Government
Surplus Funds
2-550%
0%
N/A
NRSROs who rate
the fund
N/A
Trust Funds
(AAAm/Aaa-mf, or
("Florida Prime")
equivalent)
Highest Fund
Quality and
Volatility Rating
Intergovernmental
2-550%
0%
N/A
Categories by all
N/A
Pools (LGIPs)
—
NRSROs who rate
the LGIP,
(AAAm/AAAf, S1,
or equivalent
Highest Fund
Rating by all
Money Market
50%
0%
33.33%
NRSROs who rate
N/A
Funds (MMFs)
the fund
(AAAm/Aaa-mf, or
equivalent)
U.S. Treasury
50%
0%
N/A
N/A
30 days
Highest ST Rating
Commercial Paper
5%
0%
N/A
Category
(A -1/P-1, or
30 Days
equivalent)
Section 3. The provisions of this Ordinance shall become and be made a part of the Code of
Ordinances of the Village of North Palm Beach, Florida.
( Section 4. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative or void,
such holding shall not affect the remainder of this Ordinance.
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Section 5. All ordinances or parts of ordinances and resolutions or parts of resolutions in
conflict herewith are hereby repealed to the extent of such conflict.
Section 6. This Ordinance shall take effect immediately upon adoption.
PLACED ON FIRST READING THIS 14' DAY OF DECEMBER, 2017.
PLACED ON SECOND, FINAL READING AND PASSED THIS 11.. DAY OF JANUARY, 2018.
(Village Seal)
ATTEST:
Z' G�
VILLAGE CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
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AYOR