HomeMy WebLinkAboutResolution-1998-1673
RESOLUTION NO. 1673
SERIES OF 1998
TITLE: A RESOLUTION REVISING THE CITY'S INVESTMENT POLICY AND
GUIDELINES FOR INVESTMENT OF CITY FUNDS BY THE CITY
TREASURER AND AMENDING RESOLUTION NO. 1663.
WHEREAS, under the City Charter of the City of Wheat Ridge, Colorado, the City
Treasurer is vested as the custodian of all public funds belonging to the City; and
WHEREAS, the City Council of the City of Wheat Ridge wishes to provide the City
Treasurer with adequate policy and guidelines to be followed so that the City Council need not be
required to approve specific transactions,
NOW, THEREFORE, BE IT RESOLVED, that the City Treasurer shall be
responsible for investment of City funds within the guidelines of the current Investment Policy as
amended by the attached reviSIOn known as Exhibit A.
DONE AND RESOLVED this ----.lQ.!.hCIay of Augus t ,1998
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, Gretchen Cerveny, Mayor
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ATTEST
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Wanda Sang, City Clerk
Exhibit A.
V Eligible Investments and Transactions'
8 Repurchase Agreements collateralized by U S Treasury securities and/or Federal Agency
securities, the matunties of which may extend beyond five years, The purchased securities
shall have an original minimum market value including accrued interest of 102 percent of
the dollar value of the transaction, and shall be marked to market weekly The title to or a
perfected security interest in such securities held by a third party custodian as approved by
the City, along with any necessary transfer documents evidencing any transfer of securities
held as collateral for a repurchase agreement, must be transferred to the City or to a
custodian acting on behalf of the City The Treasurer shall approve the transfer of any
securities to any custodian acting as a participant with the City in a Repurchase
Agreement.
Repurchase Agreements, Repurchase agreements (repos), are transactions in which an
institutlOnalmvestor (Wheat Ridge in our case) lends the provider (Merrill Lynch in this situation)
cash and receives securities as collateral. At termination, the client receives the cash back, with
interest based upon the repo rate, and returns the securities to the provider
. The market value of the collateral will exceed the amount borrowed, usually by 2%, and is
marked to market regularly
. Interest on repos IS accrued on the actual number of days outstanding over a base year of
360 days.
Because repos are fully collateralized, they offer a high degree of safety as well as an attractive
yield,