§ 2-438. Investment of funds of the city.

The director of finance and/or subordinates designated by the director of finance are authorized to invest and reinvest funds, execute trades and otherwise conduct business involving the investment of the funds of the city. Investments shall be made in accordance with the city's approved investment policy. The rules of this section and the city investment policy shall not apply to pension or retirement funds, OPEB funds, certain special use funds, or funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Funds held by trustees or fiscal agents are excluded from these rules; however, all funds are subject to regulations established by the State of Florida. Except for excluded funds, and restricted and special funds, the city commingles its funds for investment purposes to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income is allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. Funds of the city may be invested in any investments authorized by F.S. § 218.415(16), and/or in one or more of the following investment instruments:

(1)

Any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any of the federal agencies set forth in subsection (3) below to the extent unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this subsection;

(2)

Any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which at the time of their purchase are rated investment grade by a nationally recognized rating agency;

(3)

Bonds, debentures or other evidences of indebtedness issued or guaranteed by any agency or corporation which has been or may hereafter be created pursuant to an Act of Congress as an agency or instrumentality of the United States of America including securities issued by Federal Agencies and Government Sponsored Enterprises (GSEs) such as: Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB), Federal Home Loan Banks (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Small Business Administration (SBA), and Tennessee Valley Authority (TVA);

(4)

Mortgage Backed Securities (MBS), Commercial Mortgage Backed Securities (CMBS), Collateralized Mortgage Obligations (CMO), and Asset Backed Securities (ABS) issued by a federal agency or instrumentality, or by a private corporation, which at the time of their purchase are rated investment grade by a nationally recognized rating agency;

(5)

Interest-bearing time deposits or savings accounts in qualified public depositories, including certificates of deposit, whether negotiable or nonnegotiable, issued by any bank or trust company organized under the laws of any state of the United States or any national banking association which is a member of the Federal Deposit Insurance Corporation, savings and loan associations which are members of the Federal Savings and Loan Insurance Corporation and credit unions which are members of the National Credit Union Administration Insurance Fund, provided that the aggregate principal amount of all certificates of deposit issued by any such bank, trust company, national banking association, savings and loan association or credit union which are purchased with moneys of the city are fully insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Administration Insurance Fund; or secured to the extent not insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Administration Insurance Fund by such securities as are described in subsections (1) through (3), inclusive, having a market value (exclusive of accrued interest, other than accrued interest paid in connection with the purchase of such securities) at least equal to the principal amount of such certificates of deposit (or portion thereof not insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Administration Insurance Fund) which shall be lodged with the city, or a depositary, as custodian, by such bank, trust company, national banking association, savings and loan association or credit union, and such bank, trust company, national banking association, savings and loan association or credit union shall furnish the city or the depositary, if any, with an undertaking satisfactory to it that the aggregate market value of all such obligations securing such certificates of deposit will at all times be an amount which meets the requirements of this subsection and the city or the depositary, if any, shall be entitled to rely on each such undertaking;

(6)

Bonds, notes, debentures or other evidences of indebtedness issued or guaranteed by any corporation which are, at the time of purchase, rated investment grade by a nationally recognized rating agency;

(7)

Any repurchase agreement with any bank or trust company organized under the laws of any state of the United States or any national banking association or government bond dealer reporting to, trading with and recognized as a primary dealer by the Federal Reserve Bank of New York, which agreement is secured by any one or more of the securities described in subsections (1), (2), or (3);

(8)

Bankers Acceptances which are issued by institutions whose senior obligations are, at the time of purchase, rated investment grade by a nationally recognized rating agency;

(9)

Commercial Paper rated at the time of purchase at least A-1 by Standard and Poor's, P-1 by Moody's, or F1 by Fitch;

(10)

Local Governmental Investment Pools and Funds authorized pursuant to the Florida Interlocal Cooperation Act of 1969, including but not limited to the SBA Local Government Surplus Funds Trust Fund (Florida Prime), the Florida Education Investment Trust Fund (FEITF), the Florida Cooperative Liquid Assets Securities System (FLCLASS), the Florida Surplus Asset Fund Trust (FLSAFE), the Florida Local Government Investment Trust Day to Day Fund (FL Trust), and the Florida Treasury Investment Pool;

(11)

SEC registered money market funds in good standing with the Securities and Exchange Commission which are rated investment grade by a nationally recognized rating agency, provided that such money market fund assets are limited to investments authorized by this section;

(12)

Securities of, or other interests in, any open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time, provided that the portfolio of such investment company or investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian.

(Code 1960, § 2-20; Ord. No. 3046, § 1, 8-27-84; Ord. No. 981207, § 1, 10-25-99; Ord. No. 020368, § 1, 10-28-02; Ord. No. 040466, § 1, 11-8-04; Ord. No. 160951 , § 2, 6-1-17)