0626 Surplus FundsORDINANCE N0. 626
AN ORDINANCE OF THE CITY OF OKEECHOBEE, FLORIDA,
PROVIDING FOR THE INVESTMENT OF SURPLUS FUNDS OF THE CITY
IN PERMITTED INVESTMENTS IN ADDITION TO THOSE
SPECIFICALLY ENUMERATED BY STATE LAW; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, pursuant to Section 166.261, Florida Statutes, as
amended (the "Act the City Council (the "Council of the City
of Okeechobee, Florida (the "City has authority to direct the
investment and reinvestment of certain surplus public funds (as
defined in the Act, the "Surplus Funds which are in its control
or possession in certain investments enumerated in the Act; and
WHEREAS, the Act further permits the Council to establish
additional permitted investments for Surplus Funds in its control
or possession; and
WHEREAS, the Council desires to establish additional permitted
investments for Surplus Funds in order to afford to the City
additional flexibility in formulation of its investment strategies,
particularly with respect to the investment of the general fund,
public utilities funds and proceeds of bonds or other obligations
of the City which constitute Surplus Funds; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE,
FLORIDA AS FOLLOWS:
Section 1. AUTHORITY FOR THIS ORDINANCE. This Ordinance
is enacted pursuant to the Act, and other applicable provisions of
law.
Section 2. PERMITTED INVESTMENTS. In addition to
permitted investments described in the Act, Surplus Funds of the
City may be invested and reinvested in:
(a) Commercial paper rated in one of the three highest rating
categories by Standard Poor's Corporation and Moody's Investors
Service, or any successors, or commercial paper backed by a letter
of credit or line of credit rated in one of such rating categories;
(b) Pre refunded municipal obligations defined as follows:
any bonds or other obligations of any state of the United States
of America or any agency, instrumentality or local government unit
of any such state (i) which are not callable at the option of the
obligor prior to maturity or as to which irrevocable notice has
been given by the obligor to call such bonds or obligations on the
date specified in the notice, (ii) which are fully secured at
levels rated in one of the three highest rating categories by
Standard Poor's Corporation and Moody's Investors Service, or any
successors, as to principal and interest and redemption premium,
if any, by a fund consisting only of cash or direct obligations of,
or obligates the principal of and interest on which are
unconditionally guaranteed by, the United States ("United States
Obligations which fund may be applied only to the payment of such
principal of and interest and redemption premium, if any, on such
bonds or other obligations on the maturity date or dates thereof
or the specified redemption date or dates pursuant to such
irrevocable instructions, as appropriate, and (iii) which fund is
sufficient, as verified by an independent certified public
accountant, to pay principal of and interest and redemption
premium, if any, on the bonds or other obligations described in
this paragraph on the maturity date or dates thereof or on the
redemption date or dates specified in the irrevocable instructions
referred to in subclause (i) of this paragraph, as appropriate;
(c) Banker's acceptances of commercial banks (which banks
must be rated for unsecured debt at the time of investment and
reinvestment in one of the three highest categories established by
Moody's Investors Service and Standard Poor's Corporation, or any
successors) maturing not more than 360 days after the date of
purchase;
(d) Investment agreements with a banking institution which
is rated, or the holding company of which is rated, in one of the
three highest rating categories of Standard Poor's Corporation
and Moody's Investors Service, or any successors, or which has
issued a letter of credit, contract, agreement or surety bond in
support of debt obligations which have been so rated; provided that
(i) such agreement shall provide that it is not subordinated to any
other obligations of such banking institution, and (ii) the City
shall receive an opinion of counsel that such agreement is an
enforceable obligation of such banking institution;
(e) Direct and general long -term obligations of any state,
to the payment of which the full faith and credit of the state is
pledged and that are rated in one of the three highest rating
categories by Moody's Investors Service and Standard Poor's
Corporation, or any successors;
(f) Direct and general short -term obligations of any state,
to the payment of which the full faith and credit of the state is
pledged and that are rated in one of the three highest rating
categories by Moody's Investors Service and Standard Poor's
Corporation, or any successors; and
(g) Municipal obligations of a state or any political
subdivision thereof which are rated in one of the three highest
rating categories by Moody's Investors Service and Standard
Poor's Corporation, or any successors; and
(h) Repurchase agreements, the maturities of which are 30
days or less, entered into with financial institutions such as
banks or trust companies organized under state law or national
banking associations, insurance companies, or government bond
dealers reporting to, trading with, and recognized as a primary
dealer by, the Federal Reserve Bank and a member of the Security
Investors Protection Corporation or with a dealer or parent holding
company that is rated in one of the three highest rating
successors. Any such repurchase agreement shall be in respect of
United States Obligations, the fair market value of which, together
with the fair market value of the repurchase agreement securities,
exclusive of accrued interest, shall be maintained at an amount at
least equal to the amount invested in the repurchase agreements.
In addition, the provision of the repurchase agreement shall meet
the following additional criteria: (a) the City (who shall not be
the provider of the collateral) or a third party acting solely as
agent for the City has possession of the repurchase agreement
securities and the United States Obligations; (b) failure to
maintain the requisite collateral levels will require the holder
to liquidate the securities immediately; (c) the City or third
party fiduciary has a perfected, first priority security interest
in the securities; and (d) the securities are free and clear of
third -party liens, and in the case of an SIPC broker, were not
acquired pursuant to a repurchase or reverse repurchase agreements;
PROVIDED, HOWEVER, that nothing herein shall be deemed to permit
the City to invest earmarked Surplus Funds contrary to the bond
resolution or indenture, or contrary to any other contractual
limitation of the City which is applicable to such earmarked
Surplus Funds. For purposes of this Ordinance, the rating
designations of "plus" and "minus" shall not be deemed separate
rating categories.
2
Section 3. SEVERABILITY OF INVALID PROVISIONS. If any one
or more of the covenants, agreements or provisions herein contained
shall be held contrary to any express provisions of law or contrary
to the policy of express law, though not expressly prohibited, or
against public policy, or shall for any reason whatsoever be held
invalid, then such covenants, agreements or provisions shall be
null and void and shall be deemed separable from the remaining
covenants, agreements or provisions and shall in no way affect the
validity of any of the other provisions hereof.
Section 4. REPEALING CLAUSE. All ordinances or
resolutions or parts thereof of the City in conflict with the
provisions herein contained are, to the extent of such conflict,
hereby superseded and repealed.
Section 5. EFFECTIVE DATE. This Ordinance shall become
effective immediately upon its adoption.
Int duced for irst reading and set for public hearing this
(,p day of first 1990.
Passed and adopted on second reading and public hearing this
ZO day of (h.hJ7 1990.
ATTEST:
.0 -%/.��411
L
BONNIE HOMAS, CITY CLERK
3