Sec. 110.203. - Investment policies and debt management policies; authorized transactions; cooperation with independent agencies; classes and types of investments; investment pool.
(a) Investment policies and debt management policies. A copy of the City's investment policy and any revisions thereto as described herein and as approved by the City Council ("Investment Policy") and a copy of the City's debt management policies and any revisions thereto as described herein and as approved by City Council each shall be maintained on file in the offices of the City Treasurer, the Legislative Services Division, and the Council Auditor. The investment policy shall require periodic reporting by third parties on the performance of the City's investments.
(b) Investments.
(1) When in the judgment of the Director of Finance and Administration, consistent with guidelines approved by the City Council, a sufficient amount of money has accumulated in the accounts or funds of the City or when the City of Jacksonville has accumulated monies by reason of the sale of its own securities, the Director of Finance and Administration may invest the same, at prevailing market yields on behalf of and in the name of the City of Jacksonville, only through the purchase of one or more of the following securities or investment instruments, or any other securities or investment instruments authorized in the City's Investment Policy adopted by City Council; provided, any security or investment instrument purchased must meet the maturity, duration, credit and exposure criteria set forth in the City's Investment Policy:
(i) Debt obligations issued by the United States Government, or one of its agencies, for which the payment of interest and the repayment of principal are backed by the full faith and credit of the United States.
(ii) Debt obligations issued and guaranteed by a federally sponsored entity that is backed by, or is permitted to borrow from, the Treasury of the United States.
(iii) Corporate debt obligations of domestic or foreign corporations, or foreign sovereignties, including, but not limited to, corporate notes and bonds, medium-term notes, Euro-dollar notes and bonds, Yankee notes and bonds, bankers acceptances and commercial paper.
(iv) Mortgage-backed and Asset-backed securities issued by a federal agency or instrumentality or by a private corporation.
(v) Bank certificates of deposit in accordance with the provisions of F.S. Chapter 280, as amended from time to time.
(vi) Repurchase Agreements with eligible parties to be fully collateralized in accordance with the terms of a master repurchase agreement.
(vii) Taxable or Tax-exempt government debt obligations issued by any one of the United States, a commonwealth or territory of the United States, or any county, municipality, taxing district or political subdivision thereof.
(viii) Money Market Funds, structured as a mutual or trust fund, which provide daily liquidity of funds.
(ix) Fixed-Income Mutual Funds which may provide liquidity of funds less frequently than daily.
(x) Specialty Risk investment funds or pools with specifically identifiable risk exposure. Such funds or pools may be accessed through and/or managed by a qualified third-party.
(xi) Derivatives, the value of which depends on, or is derived from, one or more underlying assets, indices or asset values related to securities or investment instruments authorized by the City's Investment Policy.
(2) Notwithstanding the above, the Director of Finance and Administration is authorized to contract with External Investment Management firms to professionally invest and manage portions of the City's investable assets. In those instances where investment guidelines, by the nature of the investment product provided by External Managers, will differ from those contained herein or in the City's Investment Policy, the investment guidelines governing the management of those assets by the External Investment Manager must first be approved by the City Council's Finance Committee.
(3) Specific authority to invest in Specialty Risk/Externally Managed Funds, as defined in the Investment Policy, and the related specific investment guidelines must be approved by the City Council's Finance Committee and operate within the specific risk exposure guideline established in the City Council approved Investment Policy.
(4) The Director of Finance and Administration, and any other member of the City staff designated by the Director of Finance and Administration, consistent with guidelines set forth in the City's Investment Policy as approved by the City Council, are authorized to (a) execute trades and maintain positions with respect to authorized securities or investment instruments in a manner consistent with the methods of settlement or authorized transactions contained in the City's Investment Policy and (b) pay the cost thereof from or deposit the proceeds therefrom into the proper accounts or funds of the City.
(5) The Director of Finance and Administration, and any other member of the City staff designated by the Director of Finance and Administration, consistent with the guidelines set forth in the City's Investment Policy as approved by the City Council, are authorized to execute reverse repurchase agreement transactions for the purpose of providing liquidity to the City's investment portfolio.
(6) The Investment Committee described in the Investment Policy is hereby approved and authorized to undertake all actions described in the Investment Policy.
(7) Nothing herein contained shall be interpreted or construed to abrogate any specific provision contained in any bond ordinance of the City relating to the investment of bond proceeds temporarily available in specific funds or accounts. Furthermore, nothing herein contained shall necessarily be applicable to pension funds, trust funds, deferred compensation funds or any other funds the use of which is restricted by debt covenant, applicable legal or regulatory constraint, or prior contract; nor shall the provisions herein be interpreted or construed to abrogate any specific provision of any document related to such pension funds, trust funds, deferred compensation funds, debt covenant, legal or regulatory constraint or prior contract.
(c) Authorized transactions. The Director of Finance and Administration, and/or other staff as may be designated by the Director of Finance and Administration, are hereby authorized to invest and reinvest funds, execute trades and to otherwise conduct business within the scope of the Investment Policy and this Section in such amounts and in the types of investments permitted by outstanding bond ordinances of the City, the Investment Policy and debt and swap policies, and by applicable law. This authorization includes entering into transactions in compliance with the City's Investment Policy and debt and swap policies. All investments shall be evidenced in the form of safekeeping receipts, bank trust receipts, Federal Reserve Bank book-entry notices or confirmation/purchase notices in the name of the City.
(d) Cooperation with independent agencies. The Director of Finance and Administration or his or her designee is authorized to negotiate agreements with the independent agencies for the pooling of public funds of the City and the independent agencies and for joint investment of such pooled funds. The Mayor and Corporation Secretary shall execute the agreement on behalf of the City. The provisions of subsections (b) and (c) shall apply to City funds held in pooled funds under this subsection.
(e) Classes and types of investments.
(1) There shall be two classes of investments: Class I funds and Class II funds, as follows:
(i) Class I funds, designated as regular funds, shall consist of the funds in any of the funds or fund groups described in Section 110.106, except the Capital Projects Funds described in Section 110.106(b)(10) and the Debt Service Funds described in Section 110.106(b)(11). Escrow funds and the pension funds are not included as Class I funds and will not be invested in accordance with this subsection. Class I funds may be invested according to the City's approved investment policies.
(ii) Class II funds, designated as restricted bond trust funds, shall consist of all funds that are restricted by the terms of a bond ordinance. The funds in the Capital Projects Funds described in Section 110.106(b)(10) and in the Debt Service Funds described in Section 110.106(b)(11) are Class II funds. Class II funds may be invested in any of the types of investments set forth in the applicable bond ordinances. If a bond ordinance is silent as to the types of investments or permits the funds to be invested in the same types of investments as the City's regular funds are invested, then the investments authorized for Class I funds shall be authorized for the Class II funds under that bond ordinance.
(f) Investment pool. All Class I funds, and all Class II funds being treated as Class I funds, which the Director of Finance and Administration determines will not be immediately needed for their intended use shall be placed in the City's investment pool. Funds in the investment pool shall be invested in accordance with the City's investment policies. At the end of each month, an average cash balance available for investment through the investment pool shall be computed for each participating fund and account. The total amount of interest earned (and principal returned under certain types of investments) for that month shall be prorated to each participating fund and account in accordance with the average monthly balance that was available for investment in the investment pool from that fund or account.
(Ord. 2003-1015-E, § 2; Ord. 2004-297-E, § 1; Ord. 2004-1281-E, § 1; Ord. 2006-824-E, § 2; Ord. 2009-427-E, §§ 1—3; Ord. 2016-140-E, § 16)
