Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Updating The Current Investment Policy.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Investment Policy of the City of Hollywood originally adopted on September 21, 1994, and minimally amended by Resolution R-2013-054 on March 6, 2013, was repealed and replaced with the current Investment Policy adopted by Resolution R-2020-218 on September 16, 2020.
The City desires to update the current Investment Policy by further refining investment parameters and incorporating additional investment vehicles to enhance the Investment Policy based on recommendations from the City's Investment Manager.
The more significant revisions in the updated Investment Policy include the following updates and additional investment vehicles:
1. Expanding Section IX, Authorized Investment Institutions and Dealers, to include specific requirements for the use of non-primary securities dealers.
2. Revising Section XIII, Authorized Investments and Portfolio Composition, including adding a summary table of investment by sector type, updating portfolio composition limits, and adding additional investment types as follows:
(A) Updating the maximum percentage of the portfolio permitted to be invested in United States Government Securities from 50% to 100% to provide flexibility in portfolio composition.
(B) Updating the maximum percentage of the portfolio permitted to be invested in Federal Instrumentalities (United States Government Sponsored Enterprises) from 40% to 75% and increasing the individual issuer limit from 10% to 20% to provide flexibility in portfolio composition.
(C) Updating maximum percentage of the portfolio permitted to be invested in Intergovernmental Investment Pool with a stable net asset value from 20% to 30% to provide flexibility in portfolio composition.
(D) Adding a separate sector type f...
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