Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Repealing The Investment Policy Adopted In 1994 And Adopting A New Investment Policy Pursuant To Section 38.76(D)(9) Of The City Code Of Ordinances.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Investment Policy of the City of Hollywood is primarily from September of 1994 and most recently had a minor revision in March of 2013. Since that time there have been changes in the market conditions, in investment vehicles, and in the needs of the City in regards to its Investment Policy.
The Resolution would repeal the previous Investment Policy and adopt a new Investment Policy in its place. A memo accompanies the Resolution providing a summary and explanation of the more significant additions, deletions and revisions included in the new Investment Policy as contrasted to the previous Investment Policy.
These additions, deletions and revisions include:
1. Expanding Section III, Investment Objectives, to add information on the safety of principal, especially as related to interest rate risk and credit risk, adding discussion of static and dynamic liquidity, short-term and long-term yielding investments, and the holding of securities until maturity along with exceptions to that guideline.
2. Expanding Section IV, Delegation of Authority, to further specify the responsibilities of the Director of Financial Services, the City Treasurer, and designating the City Treasurer as the Investment Officer unless otherwise determined by the City Manager and the Director.
3. Reducing Section V, Standards of Prudence, by removing unnecessary and redundant language.
4. Expanding Section VI, Ethics and Conflicts of Interest, by adding language to prohibit employees involved with investing the City's funds from undertaking personal investment transactions with the same individual with whom business is c...
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