HomeMy Public PortalAbout13806ORDINANCE NO. 13806
AN ORDINANCE, repealing Ordinance No. 13623, and Ordinance No. 12010
and Resolution No. 3009, to provide for the selection of Approved Depositary Banks and
Approved Securities Dealers, the making and terms of time and demand deposits and Authorized
Investments, the form of security for safekeeping of District funds, the approval of Authorized
District Representatives for purposes of signing of checks and making of transfers of District
funds, the furnishing of surety bonds for Authorized District Representatives, and reports of the
Secretary-Treasurer to the Board of Trustees of the District with respect to the deposit and
investment of District funds.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section 1. Investment Policy.
The Secretary-Treasurer shall prepare, maintain and adhere to a written
investment policy which shall include an asset allocation plan which limits the total amount of
District funds which may be invested in any particular investment authorized by law. The
Secretary-Treasurer shall present a copy of such policy to the Board of Directors annually or at
any time the written investment policy is amended, attached hereto as Exhibit "A"
Section 2. Time and Demand Deposits - Approved Depositary
Banks/Contracts.
A. The Secretary-Treasurer shall maintain a list of banks or trust companies,
situated in the District, approved for deposit of District funds ("Approved Depositary Banks").
The list of Approved Depositary Banks, attached hereto as Exhibit "B", is hereby approved;
provided that such list may be modified from time to time by resolution of the Board of Trustees
of the District.
B. The Secretary-Treasurer shall determine, by the exercise of his best
judgment, the amount of District funds that are not immediately needed for the purpose to which
such funds are applicable, and shall keep on demand deposit in Approved Depositary Banks the
amount of District funds which he has so determined are needed for current operating expenses
of the District and disburse the same as authorized by state law and the District's Plan.
C. Within the parameters of the Secretary-Treasurer's written investment
policy, the Secretary-Treasurer shall place the District funds which he has determined are not
immediately needed for the purpose to which said funds are applicable, on time deposit drawing
interest in Approved Depositary Banks, or place them outright or by repurchase agreement in
Authorized Investments described in Section 3 of this Ordinance, as he in the exercise of his best
judgment determines to be in the best overall interest of the District, giving due consideration to:
(1) The preservation of such moneys;
(2) The liquidity needs of the District;
(3) The comparative yield to be derived therefrom;
(4) The effect upon the economy and welfare of the people of Missouri of the
removal or withholding from banking institutions in the District of all or some such District
funds and investing same in obligations authorized in section 15, article IV of the Missouri
Constitution; and
(5) All other factors which to him/her as a prudent Secretary-Treasurer seem
to be relevant to the welfare of the District in the light of the circumstances at the time
prevailing.
In making such deposits or investments, the Secretary-Treasurer shall follow the
applicable investment strategy submitted to the Board of Trustees of the District as a part of his
monthly report as required by Section 4 of this Ordinance; provided that the Secretary-Treasurer
may make investments or deposits, which are not consistent with such investment strategy, when
such action is, in the judgment of the Secretary-Treasurer, in the best interest of the District,
taking into consideration the factors set forth in this Section, provided the Secretary-Treasurer
will note such action in his next monthly report to the Board of Trustees of the District.
D. In placing moneys on demand or time deposit, the Secretary-Treasurer
shall use his best efforts to obtain three quotes from Approved Depositary Banks and shall place
such funds with the Approved Depositary Bank selected by him/her, taking into consideration
the quote of such Approved Depositary Bank and the factors set forth in Section C above. The
Secretary-Treasurer shall maintain a record of all quotes received. The Secretary-Treasurer may
place such funds with an Approved Depositary Bank, without obtaining quotes, when such
action is, in the judgment of the Secretary-Treasurer, in the best interest of the District taking
into consideration the factors set forth in Section C above, provided that the Secretary-Treasurer
shall note such action in his next monthly report to the Board of Trustees of the District.
E. The Executive Director and Secretary-Treasurer of the District are
authorized and directed to execute a contract with each Approved Depositary Bank holding
funds of the District. The contract shall be in substantially the form of Exhibit "C" attached
hereto with such changes therein as shall be approved by the Executive Director, Secretary-
Treasurer and General Counsel of the District, provided that such officers' signatures on such
contract shall constitute conclusive evidence of the approval thereof.
Section 3. Authorized Investments - Approved Securities Dealers -Contracts.
A. The Secretary-Treasurer may subscribe for or purchase outright or by
repurchase agreement obligations of the United States government which are lawful for
investment of the District's funds under state law and the District's Plan ("Authorized
Investments") which he, in the exercise of his best judgment, believes to be the best for
investment of District funds at the time and in payment therefor may withdraw moneys from any
bank account, demand or time, maintained by him/her. The Secretary-Treasurer may bid on
subscriptions for such Authorized Investments in accordance with his best judgment. Such
Authorized Investments may be purchased from any primary government securities dealer
certified as such by the New York Federal Reserve Bank, from any Authorized Depositary Bank
or from any securities dealer with offices in the District selected by the Secretary-Treasurer and
approved by resolution of the Board of Trustees of the District ("Approved Securities Dealers").
The Secretary-Treasurer shall maintain a list of Approved Securities Dealers. The list of such
Approved Securities Dealers, attached hereto as Exhibit "D", is hereby approved; provided that
such list may be modified from time to time by resolution of the Board of Trustees of the
District. The Secretary-Treasurer shall provide for the safekeeping of all such Authorized
Investments so acquired in the same manner that securities pledged to secure the repayment of
District funds deposited in Approved Depositary Banks are kept by him/her pursuant to law. The
Secretary-Treasurer may hold any such Authorized Investments so acquired by him/her until its
maturity or prior thereto may sell the same outright for a negotiated fee as he, in the exercise of
his best judgment, deems necessary or advisable for the best interest of the District in the light of
the circumstances at the time prevailing. The Secretary-Treasurer may pay all costs and
expenses reasonably incurred by him/her in connection with the subscription, purchase, sale,
collection, safekeeping or delivery of all such Authorized Investments at any time acquired by
him/her. In purchasing or selling Authorized Investments the Secretary-Treasurer shall use his
best efforts to obtain two quotes from Approved Securities Dealers and shall purchase or sell
Authorized Investments with the Approved Securities Dealers selected by him/her, or from the
Direct-Purchasing method through Bloomberg from the Approved commercial paper list Exhibit
G attached hereto, taking into consideration the quote of such Approved Securities Dealers, the
costs and expenses to be paid by the District in connection with such transaction, and the factors
set forth in Section 2C above. The Secretary-Treasurer shall maintain a record of all quotes
received. The Secretary-Treasurer may purchase or sell Authorized Investments, without
obtaining quotes, when such action is in the judgment of the Secretary-Treasurer, in the best
interest of the District taking into consideration the factors set forth in Section 2C above,
provided that the Secretary-Treasurer shall note such action in his next monthly report to the
Board of Trustees of the District. The Secretary-Treasurer shall purchase and sell securities at the
price and execution that is most beneficial to the District. The liquidity requirements and the
interest rate shall be analyzed to determine the optimal investment maturities prior to requesting
bids or offers. Investments shall be purchased and sold through a competitive bid/offer process.
Bids/offers for securities of comparable maturity, credit and liquidity shall be received from at
least two financial institutions, if possible. Such competitive bids/offers shall be documented on
the investment manager’s trade documentation. Supporting documentation from Bloomberg,
Wall Street Journal, or other financial information system shall be filed with trade documentation
as evidence of general market prices when the purchase or sale was affected.
B. The Executive Director and Secretary-Treasurer of the District are
authorized and directed to execute a contract with each Approved Depositary Bank or each
Approved Securities Dealer with whom the District enters into a repurchase agreement. The
contract shall be in substantially the form of Exhibit "C" attached hereto with such changes
therein as shall be approved by the Executive Director, Secretary-Treasurer, and General
Counsel of the District, provided that such officers' signatures on such contract shall constitute
conclusive evidence of the approval thereof.
Section 4. Secretary-Treasurer's Report. The Secretary-Treasurer shall
prepare a monthly report to the Board of Trustees of the District relating to the deposit and
investment of District funds pursuant to this Ordinance. The Secretary-Treasurer's monthly
report shall include a prospective overview of the Secretary-Treasurer's investment strategy for
the deposit and investment of District funds for the next succeeding monthly period and a report
regarding the deposit and investment of District funds for the preceding monthly period
including the performance of such funds for the reporting period. The District reports all
holdings of Securities by portfolio on the web page daily for review as well as monthly (CFR)
comprehensive financial reporting of asset allocation and compliance with Investment Policy.
Section 5. Security for Safekeeping of District Funds. For the security of the
funds deposited by the Secretary-Treasurer under the provisions of this Ordinance, the Secretary-
Treasurer shall, from time to time, submit a list of acceptable securities to be approved by
resolution of the Board of Trustees of the District and the Secretary-Treasurer shall require of the
Approved Depositary Banks as security for the safekeeping and payment of deposits, securities
from the list provided for in this section, which list may include only securities of the kind and
character permitted by state law and the District's Plan ("Approved Collateral"). The list of
Approved Collateral, attached hereto as Exhibit "F" is hereby approved; provided that such list
may be modified from time to time by resolution of the Board of Trustees of the District. Such
securities shall be delivered to the Secretary-Treasurer or to a disinterested banking institution or
safe depositary, as escrow agent or trustee, as directed by the Secretary-Treasurer. All securities
will be held by third-party custodian designated by the Secretary-Treasurer and evidenced by
safekeeping receipts. All trades where applicable will be executed by delivery vs. payment
(DVP) to ensure that securities are deposited in an approved financial institutions prior to the
release of funds.
Section 6. Authorized District Representatives. All requests for transfers of
funds from District accounts to other accounts of the District maintained at the same Approved
Depositary Bank, other than transfers by check, may be authorized by telephonic, telegraphic,
oral or written request received from an Authorized Representative of the District. A transfer of
funds from District accounts in favor of third parties shall be authorized only at the request of
any two Authorized Representatives of the District. All checks drawn on any accounts of the
District shall be signed, either manually or by means of a check-signing machine, by any
Authorized Representative of the District; provided that checks of $50,000 or more may not be
signed by means of a check signing machine or other facsimile and must be signed by the
manual signatures of two Authorized Representatives of the District. The Authorized
Representatives of the District, which include the Secretary-Treasurer, Assistant Secretary-
Treasurer, General Counsel, Attorney III, and Director of Information Services, and of the
District are hereby approved; provided that the Board of Trustees may, from time to time, by
resolution change such Authorized Representatives of the District.
Section 7. Official Bonds. The Secretary-Treasurer of the District shall,
before entering upon the discharge of his duties hereunder, give bond in the sum of not less than
$1,000,000 to the District and any other Authorized Representative of the District shall give
bond in the sum of not less than $500,000; provided that the District may purchase such bond in
additional amounts which the Executive Director deems in the best interest of the District, taking
into consideration the security of District funds as well as the cost of such bond. The bond shall
be furnished with a surety company authorized to do business in the State of Missouri and shall
be in such form as may be prescribed by the General Counsel of the District. The bond shall be
filed in accordance with Section 7.070 of the District Plan.
Section 8. Prior Ordinances. The provisions contained in this ordinance shall
take the place of and supersede the provisions of all prior ordinances or resolutions relating to the
same subject matter which are herewith inconsistent, including but not limited to Ordinance Nos.
7879, adopted August 9, 1989 and 10908, adopted February 8, 2001, and such ordinances are
hereby repealed.
Section 9. FDIC Limits. Deposits at FDIC-insured institutions are now
insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014,
the standard insurance amount will return to $100,000 per depositor for all account categories
except for IRAs and other certain retirement accounts which will remain at $250,000 per
depositor.
Section 10. Check 21 Act. The District follows the law related to the Check 21
Act. The Check 21 was enacted on October 28, 2004. The law allows the recipient of the
original paper check to create a digital version of the original check, into an electronic format
thereby eliminating the need for further handling of the physical document.
Section 11. Electronic Payments. The District issues payments using the EFT
Electronic Funds Transfer process and adheres to the same approvals and guide lines as the
issuance of checks. This is the District’s preferred method of payment.
EXHIBIT B
LIST OF APPROVED DEPOSITARY BANKS
Bancorp South
Bank of America, N.A.
BMO Harris Bank
Boulevard Bank
Bremen Bank & Trust Company
Carrollton Bank
Cass Commercial Bank
Citizens National Bank
Commerce Bank of St. Louis
Commerce Trust
Commercial Bank of Westport
Eagle Bank and Trust Company of Missouri
Enterprise Bank & Trust
EverBank
FCB South County Bank
Fifth Third Bank
First Financial Bank
First National Bank of St. Louis (Central Bancompany)
Founders Bank
Heartland Savings Bank
Lindell Bank & Trust Company
Main Street Bank & Trust (Lock-Box /Firstech Pay Station Pass Through)
Montgomery 1st National Bank
Northern Trust Bank
PNC Bank
Pulaski Bank
Regions Bank, N.A.
Reliance Bank
Rockwood Bank
Royal Banks
Saint John’s Bank & Trust Company
St. Louis Bank
Southern Commercial Bank
The Bank of New York*
The Business Bank of St. Louis
The Private Bank
UMB Trust
US Bank
*Paying Agent Institutions Only
EXHIBIT C
DEPOSITARY CONTRACT FOR DEPOSITS
OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT
THIS CONTRACT, made the _____ day of_________________, 20____,
between the Secretary-Treasurer of The Metropolitan St. Louis Sewer District (hereinafter the
"District") and ___________ ______________ (hereinafter the "Depositary");
WITNESSETH:
Pursuant to the provisions of Section 7.080 of the District's Plan and Ordinance
No.__________ of the District, Depositary has been selected as a depositary of moneys of the
District; and it is hereby agreed as follows:
1. Demand Accounts. The Secretary-Treasurer of the District will from time to
time deposit moneys with Depositary on demand deposit. The District agrees to establish and
maintain with Depositary the following demand deposit accounts:___________
_______________________________________________. Depositary agrees to safely keep the
demand deposits made hereunder, to promptly collect all checks, drafts and other instruments of
exchange deposited with it under this contract, and to pay out such sums as the District may draw
by check or other transfer as hereinafter provided.
2. Certification of Deposit. The Secretary-Treasurer of the District will from
time to time purchase certificates of deposit from the Depositary. The rates of interest, basis of
calculation of interest, time of payment of interest and maturity of each such certificate of
deposit shall be as agreed to by the District and the Depositary at the time of purchase.
3. Collateral for Deposits. The Secretary-Treasurer shall from time to time
provide the Depositary a list of approved securities ("Securities"), which may be provided as
collateral for District deposits. The current list of Securities is attached hereto as Addendum A.
To secure the safekeeping of the moneys deposited under this contract, Depositary will deliver
Securities, in an amount at least equal in market value to the amount of deposits of District and
its subdistricts in the Depositary hereunder, as directed by the Secretary-Treasurer. Such
Securities shall be delivered to the Secretary-Treasurer or to a disinterested banking institution or
safe depositary, as escrow agent or trustee (the "Custodian") as directed by the Secretary-
Treasurer in writing. The current written direction of the Secretary-Treasurer as to the Custodian
for such Securities is attached hereto as Addendum B. Depositary does hereby grant, bargain,
convey and pledge a security interest in any and all Securities deposited with the Secretary-
Treasurer of the District or the Custodian in accordance with the terms of this contract. Upon an
increase in the deposits of the District in the Depositary, the Depositary will
make additional deposits of Securities with the Secretary-Treasurer or Custodian, equal in
market value to the amount by which such deposits have increased. Upon a decrease in the
deposits of the District in the Depositary, the Secretary-Treasurer of the District shall consent to
a withdrawal of deposits of Securities in such amounts as will insure that all deposits are fully
collateralized in the amount required hereunder.
4. Accounting and Safekeeping of Securities. The Secretary-Treasurer of the
District may from time to time inspect or request an accounting of the securities to determine that
they are kept and maintained as required in paragraph 3. Any expenses charged by the
Custodian for the deposit, safekeeping and inspection of said securities shall be paid by
Depositary. If in any case, or at any time, the Secretary-Treasurer of the District determines that
the Securities given by Depositary do not satisfactorily secure the deposits made or to be made
hereunder, the District may require additional or substitute security to be given and Depositary
shall furnish additional or substitute security as is satisfactory to the Secretary-Treasurer of the
District.
5. Substitution of Securities. The Depositary may, at any time with the consent
of the Secretary-Treasurer, withdraw any of the Securities deposited to secure the safekeeping of
the moneys deposited hereunder upon depositing in lieu thereof other Securities of like kind and
character and at least equal in market value to the Securities withdrawn. Securities so deposited
will be pledged to secure payment by the Depositary of District funds as directed by the District
pursuant to the provisions hereof, and such Securities shall be released and delivered to the
District on its sole demand made to the Custodian, in the event that the Depositary should fail to
pay such secured funds, or any part thereof, as directed by the District pursuant to the provisions
hereof, and that securities so released and delivered to the District shall be converted into money
and the District shall use the same in lieu of such secured funds.
6. Statement of Accounts. Depositary shall, at times specified in writing by the
Secretary-Treasurer of the District, render a statement showing the daily balance, or amount of
money, held by it under this contract and shall include with such statement all cancelled checks
drawn on any accounts of the District covered by such statement.
7. Conversion of Securities. In the event that Depositary defaults in any manner
in performing any of the terms and conditions of this contract between the parties or fails to keep
safely the moneys deposited with it, or to pay any demand ordered by the Secretary-Treasurer of
the District, the Secretary-Treasurer of the District shall be authorized forthwith without notice,
advertisement or demand and at public or private sale to convert into money the Securities
deposited by Depositary or as many of them as may be necessary to pay the whole amount of the
moneys deposited; and District may purchase at the then market value any or all of the Securities
sold at any such sale.
8. Charges for Services. The District will be responsible for all charges for
services provided by Depositary, as mutually agreed in the attached Pricing
Schedule, Addendum C. The Depositary agrees to give the District 60 days advance written
notice prior to the effective date of any changes in Pricing Schedule, Addendum C. The
Depositary will bill the District monthly for charges for services and will not automatically debit
any account of the District maintained with the Depositary for such charges. The Depositary
retains its right to set off against any such account for charges which remain unpaid 30 days from
date of billing, provided that if the District disputes any charge within such 30 day period the
Depositary's right to set off with respect to such disputed charge may only be exercised for such
charges which remain unpaid 30 days following notice by the District to the Depositary that such
charge is in dispute.
9. Transfer of Funds. The Depositary is authorized to honor, execute and charge
to the District's account at the Depositary all telephonic, telegraphic, oral or written requests
received from an Authorized Representative of the District for transfers of funds from District
accounts to other accounts of the District maintained with Depositary, provided that a transfer of
funds from District Accounts in favor of third parties, other than a transfer by check, shall be
made by the Depositary at the request of any two Authorized Representatives of the District.
The names, offices, manual signatures and facsimile signatures of individuals presently serving
as Authorized Representatives of the District are set forth on Addendum D. The Executive
Director and Secretary-Treasurer of the District shall notify the Depositary in writing of any
changes in such Authorized Representatives of the District.
10. Checks of the District. The Depositary is authorized to honor, execute and
charge to the District's accounts at the Depositary all checks drawn on any such accounts, signed
either manually or by means of a check signing machine, by any Authorized Representative of
the District as set forth in Addendum D; provided that checks of $5,000 or more may not be
signed by means of a check signing machine or other facsimile but only by manual signature and
checks of $5 000 or more must be signed by the manual signatures of two Authorized
Representatives of the District. Check 21 Act. The District follows the law related to the Check
21 Act. The Check 21 was enacted on October 28, 2004. The law allows the recipient of the
original paper check to create a digital version of the original check, into an electronic format
thereby eliminating the need for further handling of the physical document.
Section 11. Electronic Payments. The District issues payments using the EFT
Electronic Funds Transfer process and adheres to the same approvals and guide lines as the
issuance of checks. This is the District’s preferred method of payment.
11. Assignment. Depositary shall not transfer by assignment, subcontract or
otherwise any interest in this contract without the prior written consent of the Secretary-
Treasurer of the District.
12. Access. Depositary shall permit reasonable access by the Secretary-Treasurer
of the District for purposes of performing audit procedures relating to any aspect of services
provided by Depositary to District in connection with this contract.
13. Records. Depositary shall maintain complete records relating to deposits
made hereunder in accordance with state and federal laws, rules and regulations. No listing,
report or other material generated from date covered by this contract may be disclosed or
transferred by Depositary to any other person, except as required by state and federal laws, rules
and regulations, and then only after notice to the Secretary-Treasurer of the District.
14. Term. This contract shall continue in force and effect until
________________, provided that such contract shall automatically renew on each June 30 for
an additional one-year period unless Depositary is notified by the Secretary-Treasurer of the
District that this contract will terminate on such June 30; provided, however, that each party
reserves the right to terminate this contract at any time on giving sixty (60) days written notice to
the other party of its intention to do so, and this contract shall continue in effect until so
terminated.
15. Depositary Resolution. There is attached hereto a certified copy of the
resolution adopted by the Board of Directors of Depositary authorizing the execution and
delivery of this contract by the officers of Depositary, whose names are affixed on behalf of
Depositary.
16. Modification. This Agreement and Addendum may be modified or amended
only in writing and agreed to by both parties.
17. Applicable Law. This Agreement and all sections thereof shall be governed
by the laws of the State of Missouri.
18. Additional Services. The Depositary and the District mutually agree that the
Depositary shall perform certain additional banking services as described in Addendum E under
the terms and conditions as described in Addendum E, which is incorporated herein by reference;
provided that in the event of conflicts between this contract and Addendum E, as to the services
described in Addendum E the provisions of such Addendum shall control.]
IN TESTIMONY WHEREOF, the parties have executed this contract in duplicate
and hereunto subscribed their names and affixed their seals as of the date first above written.
THE METROPOLITAN ST. LOUIS SEWER
DISTRICT
By ______________________________
Executive Director of The
Metropolitan St. Louis Sewer District
ATTEST:
_____________________________
Secretary-Treasurer
ATTEST:
_____________________________
Secretary or Assistant Secretary
Approved as to form:
_____________________________
General Counsel
The foregoing Ordinance was adopted on February 13, 2014.
EXHIBIT D
LIST OF APPROVED SECURITIES DEALERS
Primary Government Securities Dealers*
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Inc.
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC
* Such Primary Government Securities Dealers shall be those certified as such, from
time to time, by the New York Federal Reserve Bank. Current list dated March 1,
2013.
Securities Dealers in the District
Blaylock Robert Van, LLC
Comerica Securities, Inc.
Edward D. Jones
First Bankers Banc Securities, Inc.
FTN Financial Capital Markets
Great Pacific Securities
Piper Jaffray & Co
Raymond James l Morgan Keegan
Siebert Branford Shanks & Co., LLC
Stifel Nicolaus & Co., Inc.
Sterling Investments
Stern Brothers & Co.
Wells Fargo Institutional Brokerage
District Authorized Depositary Banks
EXHIBIT E
LIST OF APPROVED COLLATERAL
The securities described below are hereby designated as acceptable collateral for state funds on
deposit, as required by Section 30.270 RSMo (as amended). The State Treasurer reserves the
right to refuse to accept as collateral any security or securities on this list, or to request the
submission of an alternate acceptable security or securities, if, in the sole discretion of the State
Treasurer, the State Treasurer determines that such action will provide greater security for the
deposit of state funds.
The securities described below are designated as acceptable collateral for the deposit of state
funds. The listing is not intended to serve as, and should not be considered as a listing of legally
authorized investment instruments.
1. Marketable Treasury securities of the United States.
2. Bonds or certificates of participation (COP’s) issued by the State of Missouri with an
investment grade long-term rating from one of the Nationally Recognized Statistical
Ratings Organizations (NRSRO’s) or are secured by a federal agency guarantee (directly or
through guaranteed loans), to include the following:
a. General obligation debt securities issued by the State of Missouri.
b. Revenue bonds issued by the Missouri Board of Public Buildings or Department of
Natural Resources.
c. Revenue bonds of the Missouri Housing Development Commission, Missouri Health
and Education Facilities Authority, Missouri Higher Education Loan Authority,
Missouri Environmental Improvement and Energy Resources Authority, Missouri
Agricultural and Small Business Development Authority, Missouri Industrial
Development Board, or State-owned educational institutions.
d. Certificates of Participation issued by the Missouri Board of Public Buildings or Public
Fund Commissioners.
3. Bonds or certificates of participation with an investment grade long-term rating from one of
the NRSRO’s issued by of any of the following agencies:
a. Any city in this state having a population of not less than two thousand
b. Any county of this state
c. Any school district situated in this state
d. Any special road district in this state
e. Bonds of any political subdivision established under the provision of Article VI,
Section 30 of the Constitution of Missouri (City and County of St. Louis)
f. Any of the fifty states within the United States of America
4. Debt securities guaranteed by the United States or its agencies or instrumentalities, as
follows:
a. Debt securities of the Federal Farm Credit System
b. Debt securities of the Federal Home Loan Banks
c. Debt securities of the Federal National Mortgage Association (“Fannie Mae”)
d. Debt securities of the Student Loan Marketing Association
e. Debt securities of the Tennessee Valley Authority (TVA)
f. Debt securities of the Federal Agricultural Mortgage Corporation (“Farmer Mac”)
g. Debt securities of the Government National Mortgage Association (“Ginnie Mae”).
h. Debt securities of the Federal Home Loan Mortgage Corporation (“Freddie Mac”)
i. Guaranteed Loan Pool Certificates of the Small Business Administration (SBA)
j. Federal Home Administration insured notes (CBOs).
k. Public housing notes and bonds (“project notes and bonds”) issued by public
housing agencies, guaranteed as to the payment of principal and interest by the
government of the United States of any agency or instrumentality thereof.
l. Debt securities of the Resolution Funding Corporation (REFCORP).
Collateralization margins for pass-through mortgage-backed securities, SBA pool
certificates and collateralized mortgage obligations shall differ from debentures issued
by such agencies. The only type of Collateralized Mortgage Obligations (CMO) that the
Treasurer’s Office will accept are Planned Amortization Classes (PAC’s), Targeted
Amortization Classes (TAC’s) and sequential pay classes. Furthermore, Collateralized
Mortgage Obligations must have a weighted average life not to exceed five years and
pass the FFIEC High Risk Stress Test. No Strips, Z bonds, Mortgage Derivatives or
Zeros are acceptable.
5. Tax anticipation notes issued by any county of class one in Missouri with an investment
grade short-term rating from one of the Nationally Recognized Statistical Ratings
Organizations (NRSRO’s)
6. Surety bonds issued by an insurance company licensed under the laws of the State of
Missouri whose claims-paying ability is rated in the highest category by Duff & Phelps,
A.M. Best, Standard & Poors, or Moody’s. The face amount of such surety bond shall be at
least equal to the portion of the deposit to be secured by the surety bond.
7. Irrevocable standby Letter of Credit issued by a Federal Home Loan Band possessing the
highest rating issued by at least one NRSRO.
8. Bonds or certificates of participation issued by local government agencies within the fifty
states provided such instruments are rated in the highest category by at least one NRSRO.
The State Treasurer shall determine the collateralization margin (or “haircut”) for each
security type listed above, which may change from time to time subject to market
conditions and other factors, but in no event shall be greater than the maximum limits
allowed by law. The current collateralization requirements by security type are provided
on Attachment “A”.
The total market value of collateral must be equal to or greater than the collateralization
margin set by the State Treasurer of the total amount of state time deposits (including
accrued interest to maturity) plus demand deposits with the depository, less the amount,
if any, which is insured by the Federal Deposit Insurance Corporation, or the National
Credit Unions Share Insurance Fund. All securities pledged as collateral by the
depository will be held by the Missouri State Treasurer, in a segregated account. All
collateral pledged must be delivered in bearer for, book-entry form, or in the case of
fully registered certificates, placed into the nominee name of the custodian.
COLLATERALIZATION REQUIREMENTS
FOR DISTRICT DEPOSITS
No.
Security
Collateralization
Margin
(“Haircut”)
1. United States Treasuries 102%
2. State of Missouri Bonds/Debt 102%
3. Local/State Debt
a. Any city in this state having a population of not less
than two thousand
102%
b. Any county of this state 102%
c. Any school district situated in this state 102%
d. Any special road district in this state 102%
e. Bonds and COP’s of any political subdivision
established under the provision of Article VI, Section
30 of the Constitution of Missouri (City and County of
St. Louis)
102%
f. Any of the fifty state within the United States of
America
102%
4. U.S. Agency Securities
Agency Debentures 102%
SBA Loan Pools 105%
Agency Mortgage-Backed Securities 105%
Agency CMO’s (PACs, TACs, and SEq. Bonds only) 105%
5. Tax anticipation notes issued by any county of class one in
Missouri
102%
6. Surety bonds 100%
7. FHLB Letter of Credit 100%
8. Out-of-state Municipal Bonds/COP’s 102%
The foregoing Ordinance was adopted June 9, 2005 by the following vote – Ayes: H. Crumpton,
D.J. Hayes, C. Karam, M.A. Rhodes, and R.J. Baer. Nayes: None.
ADDENDUM B
DIRECTION REGARDING CUSTODIAN OF SECURITIES
ADDENDUM C
PRICING SCHEDULE
ADDENDUM D
AUTHORIZED REPRESENTATIVES OF THE DISTRICT
Title Name Signature Facsimile
Secretary-Treasurer
_________________
___________________
______________
Assistant
Secretary-Treasurer
_________________
___________________
______________
General Counsel
_________________
___________________
______________
Attorney III
_________________
_________________
_________________
Director of Information
Services
_________________
_________________
_________________
ADDENDUM E
ADDITIONAL SERVICES
EXHIBIT A
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
PUBLIC FUNDS INVESTMENT POLICY
January 12, 2012
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
PUBLIC FUNDS INVESTMENT POLICY
I. PURPOSE
The purpose of this Public Funds Investment Policy (this "Policy") is to outline
the standards applicable to the investment of public funds of the Metropolitan St. Louis
Sewer District (the "District") and to describe the investments permitted.
II. SCOPE OF INVESTMENT POLICY
A. General
The Policy applies to all Operating Funds of the Metropolitan St. Louis Sewer
District. The operating funds of the District for purposes of this policy include:
• Cash and investment balances in the Construction Escrow Fund;
• Cash and investment balances in the various Operation, Maintenance
and Construction; Improvement funds;
• Cash and investment balances in the General Fund;
• Cash and investment balances in the various Construction Funds;
• Cash and investment balances of the various bond funds including but
not limited to the construction or project funds, debt reserve funds,
arbitrage rebate funds, and bond sinking funds:
• Cash and investment balances of any special revenue fund of the
District including but limited to the Improvement fund;
• Any pooled investment fund used for operating purposes as defined
above;
• And any escrowed deposit(s) associated with the District’s operations.
Longer-term funds, including investment in employees’ retirement funds and
deferred compensation arrangements as well as proceeds from certain bond issues, are
covered by separate policy. This section does not apply to the District's pension funds.
Any new fund created by the District's Board of Trustees (the "Board"), unless
specifically exempted by the Board or by law, and shall be presumed to be within the
scope of this section.
B. Pooling of Funds
Except for cash in certain restricted and special funds, the District will consolidate
cash balances from all funds to obtain economies of scale. Investment income will be
allocated to various funds based on their respective participation and in accordance with
generally accepted accounting principals.
C. External Management of Funds
Investment through external programs, facilities and professionals operating in a
manner consistent with this Policy will constitute compliance.
III. OBJECTIVES
A. General
Subject to the legal restrictions on investments imposed by the Missouri
Constitution, Missouri State Statute and the Plan of the Metropolitan St. Louis Sewer
District, as amended (the "Plan") and District Ordinances, the District's primary
objectives in its investment activities, in order of priority, shall be:
1. SAFETY: Preservation of principal is the foremost objective of the District's
investment program. Investments of the District shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio. The objective will be to
mitigate credit and interest rate risk.
a. Credit Risk
The District will minimize credit risk, the risk of loss due to the failure of the security
issuer or backer, by:
1) Pre-qualifying the financial institutions, broker/dealers, intermediaries, and
advisors with which the District will do business; and
2) Diversifying the portfolio so that potential losses on individual securities will be
minimized.
b. Interest Rate Risk
The District will minimize the risk that the market value of securities in the portfolio
will fall due to changes in general interest rates, by:
1) Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities on
the open market prior to maturity; and
2) Investing operating funds primarily in short-term securities.
2. LIQUIDITY: The District's investment portfolio shall remain sufficiently liquid to
meet all operating and debt service obligations that may be reasonably anticipated. This is
accomplished by structuring the portfolio so that the securities mature with cash needs to
meet anticipated demands. Furthermore, since all possible cash demands cannot be
anticipated, the portfolio should consist largely of securities with active secondary or
resale markets. A portion of the portfolio also may be placed in bank deposits or
repurchase agreements that offer same-day or next-day liquidity for short-term funds.
3. YIELD: The District's investment portfolio shall be designed with the objective of
attaining a market rate of return throughout budgetary and economic cycles, taking into
account the Safety and Liquidity objectives stated above. Return on investment is of
secondary importance compared to the Safety and Liquidity objectives described above.
The core of investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk assumed. Securities shall not be sold prior to
maturity except when:
1) Sale of a security with declining credit may minimize the risk of loss of principal;
2) A security swap would improve the quality, yield, or target duration in the portfolio;
or
3) Liquidity needs of the portfolio require that the security be sold.
4. LOCAL ECONOMIC BENEFIT: While satisfying the objectives of Safety,
Liquidity and Yield, the District shall seek to place investments with financial institutions
that demonstrate a strong record of investing in, and supporting the local economy
through the institutions' lending practices.
5. SOCIAL POLICY: While satisfying the objectives of Safety, Liquidity and Yield,
investment decisions should further the District's social policies established by the
District's Board.
IV. STANDARD OF CARE
All participants in the investment process shall act responsibly as custodians of
public trust. The standard of prudence to be used by investment officials shall be the
"prudent investor" rule, which states, “Investments shall be made with judgment and
care, under circumstances then prevailing, which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived.”
V. ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution and management
of the investment program, or that could impair their ability to make impartial decisions.
Employees and investment officials shall disclose any material interests in financial
institutions with which they conduct business. They shall further disclose any personal
financial or investment positions that could be related to the performance of the
investment portfolio. Employees and officers shall refrain from undertaking personal
investment transactions with individuals with whom business is conducted on behalf of
the District.
VI. DELEGATION AND SCOPE OF AUTHORITY
Authority to manage the investment program of the District is granted to the
Secretary Treasurer, with approval of the Board, as derived from Section 7.020 of the
Plan. The Secretary-Treasurer shall act in accordance with the established written
procedures and internal controls for the operation of the investment program consistent
with this Policy. Procedures should include references to: safekeeping, delivery vs.
payment, investing and accounting, repurchase agreements, wire transfer agreements, and
collateral/depository agreements. No person may engage in an investment transaction
except as provided under the terms of this Policy and the procedures established by the
Board. The Secretary-Treasurer shall be responsible for all transactions undertaken and
shall establish procedures to regulate the activities of subordinate officials.
VII. INTERNAL CONTROLS
The Secretary-Treasurer shall establish a system of internal controls designed to
ensure that the assets of the District are protected from loss, theft or misuse. The internal
controls shall be designed to provide reasonable assurance that these objectives are met.
Reasonable assurance recognizes that (1) the cost of a control should not exceed the
anticipated benefits likely to be derived and (2) the valuation of costs and benefits
requires estimates and judgments by the Secretary-Treasurer. Accordingly, the Secretary-
Treasurer shall establish a process for annual independent review by an external auditor
to assure compliance with this Policy and the procedures set by the Secretary-Treasurer.
The internal controls shall address the following:
a. Control of collusion;
b. Separation of transaction authority from accounting and record keeping;
c. Custodial safekeeping;
d. Avoidance of bearer or physical delivery securities;
e. Clear delegation of authority to staff members;
f. Written confirmation of telephone transactions; and
g. Development of a wire transfer agreement with the lead bank and third party
custodian.
h. Steps to show evidence of review and approval of daily journal vouchers
i. Procedures to formalize the monthly reconciliation
j. Verify by recalculation the price of securities
Broker confirmations should be mailed directly to the District’s accounting
department for control purposes. Accounting should then match the trade details of the
confirmation against the trade information provided by the District’s Treasury staff.
All trades where applicable will be executed by delivery vs. payment (DVP) to
ensure that securities are deposited in eligible financial institutions prior to release of
funds. All securities shall be perfected in the name or for the account of the Metropolitan
St. Louis Sewer District and shall be held by a third-party custodian as evidenced by
safekeeping receipts.
VIII. SUITABLE AND AUTHORIZED INVESTMENTS
1. Investment Types
Consistent with the Plan, the following investments will be permitted by this
Policy:
A. United States Government & Agency Debt
1. Obligations of the United States Government (minimum portfolio percentage of
5%);
2.Obligations of any agency or instrumentality of the United States (no more than
30% of the total market value of the portfolio may be invested in obligations issued by
any one governmental agency or instrumentality of the United States);
B. Fixed Income Investments secured by FDIC insurance and/or collateral
1. Fixed Income investments such as but not limited to time certificates of deposit
secured by collateral as required by statute and in the section "Collateralization" of
this Policy;
2. Repurchase agreements maturing and payable within 90 days and secured by
collateral as required by statute and in the section "Collateralization" of this Policy;
3. Deposits with "Approved Depository Banks" (defined below), provided the
Approved Depository Banks shall give a bond equal to the deposit, with good and
sufficient sureties, or the deposit of collateral as required by statute and in the section
"Collateralization" of this Policy.
C. Other Fixed Income Debt issued by Commercial Enterprises: It should be noted that
investments in the following instruments require an additional level of care and prudence when
undertaken by an Investment Officer. Because these investments are in commercial credits as
opposed to governmental credt, or subject to the added safety of collateral, the risk of loss of
principal is significantly higher for the following investments than for those in the prior
categories. Added financial training and education is required for the Investment personnel that
participate in and/or manage the commercial paper program, also outside professional
management is encouraged.
1. Banker’s Acceptances. Bills of exchange or time drafts on and accepted by a
commercial bank, otherwise known as bankers’ acceptances. An issuing bank must
have received the highest letter and numerical ranking (i.e. A1 / P1) by at least two
nationally recognized statistical rating organizations (NRSRO’S). Must be issued by
domestic commercial banks. Purchases of bankers’ acceptances may not exceed 180
days to maturity. No more than 5% of the total market value of the portfolio may be
invested in bankers’ acceptances of any one issuer and no more than 25% of the
entire portfolio may be invested in banker’s acceptances.; and
2. Commercial Paper Commercial paper which has received the highest letter and
numerical ranking (i.e., A1 / P1) by at least two nationally recognized statistical
rating organizations (NRSRO’s). Eligible paper is further limited to issuing
corporations that have a total commercial paper program size in excess of
$250,000,000 and have long-term debt ratings, if any, of “A” or better from at least
one NRSRO. Purchases of commercial paper may not exceed 180 days to final
maturity. Consideration should be given to the diversification by industry type within
the portfolio of commercial paper investments. Consideration should be given to
avoiding sectors that may exhibit characteristics of undue risk, and potential
illiquidity should be avoided. Asset-backed commercial paper programs that are
eligible for purchase should be fully supported programs that provide adequate
diversification by asset type (trade receivables, credit card receivables, auto loans,
etc.). No arbitrage programs or commercial paper issued by Structured Investment
Vehicles (SIV)’s) shall be considered. No more than 5% of the total market value of
the portfolio may be invested in commercial paper of any one issuer. No more than
25% of the entire investment portfolio may be invested in Commercial Paper.
Commercial paper issuers will be subject to an on-going credit review and a daily
news research analysis and monitoring program will be established and maintained.
2. Security Selection
The following list represents the entire range of United States agency securities that the
Metropolitan St. Louis Sewer District will consider and which shall be authorized for the
investment of funds by the District.
• U.S. Government Agency Coupon and Zero Coupon Securities. Bullet coupons bonds
with no embedded options.
• U.S. Government Agency Discount Notes. Purchased at a discount with maximum
maturities of one (1) year.
• U.S. Government Callable Securities. Restricted to securities callable at par only with
final maturities of five (5) years.
• U.S. Government Step-Up Securities. The coupon rate is fixed for an initial term. At
coupon date, the coupon rate rises to a new, higher fixed term. Restricted to securities
with final maturities of five (5) years.
A Procurement The following items are included by the District and are are not
necessarily embodied in State Law or in the model investment policy sponsored by the Missouri
Treasurer’s Office
1. Competitive Process all securities purchased on behalf of the District, where possible,
for the investment portfolio shall be acquired by competitive bid with a three bid minimum and
that purchase shall be evidenced by at least two individuals
2. Approved Depository Bank "Approved Depository Banks" means any bank, trust
company, or savings and loan, selected by the Secretary-Treasurer and approved by the
Board.
3. Approved Commercial Paper List all purchases of Commercial Paper and Banker’s
Acceptances are restricted to the District’s “Approved Credit List” of viable Commercial
Paper and Banker’s Acceptances issuers/providers. Prior to purchasing a Commercial
Paper or Banker’s Acceptance investment, a credit review of the issuer should be
completed and documented in a brief report, and, if approved, the issuer’s name should
be added to the “Approved Credit List” of issuers. The list should be monitored for
changes in credit quality and an updated review of each issuer should be performed at
least annuall y.
4. Repurchase Agreement Counter Parties Repurchase transactions will be executed
only with Primary Dealers or financial institutions located in the State of Missouri that
qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital
Rule) with whom the District has executed a Master Repurchase Agreement. In addition,
local financial institutions, with which there is a Master Repurchase Agreement, may be
used for late-in-the-day transactions or regular cash account sweeps. In all cases,
repurchase agreements shall be collateralized as provided in the section
"Collateralization" of this Policy.
IX. INVESTMENT RESTRICTIONS
To provide for the safety and liquidity of the District's funds, the investment
portfolio will be subject to the following restrictions:
a. Borrowing for investment purposes ("Leverage") is prohibited.
b. Instruments known as Structured Notes (e.g. inverse floaters, leverage floaters,
and equity-linked securities) are not permitted. Investment in any instrument,
which is commonly considered a "derivative" instrument (including options,
futures, swaps, caps, floors and collars), is prohibited
c. Contracting to sell securities not yet acquired in order to purchase other securities
for purposes of speculating on developments or trends in the market is prohibited.
d. No more than 5% of the total market value of the portfolio may be invested in
commercial paper and/or banker's acceptances (combined) issued by any one
commercial bank or any one issue/provider.
X. COLLATERALIZATION
Collateralization will be required on (1) repurchase agreements, (2) time
certificates of deposit and (3) deposits with banking institutions. All securities pledged as
collateral shall be held in a segregated account on behalf of the District by an
independent third party with whom the District has a current custodial agreement and that
has been designated by the Secretary-Treasurer and the Board as eligible to serve in such
capacity. Clearly marked evidence of ownership (safekeeping receipt) must be supplied
to the District and retained. The right of collateral substitution may be granted.
The market value of any collateral shall be measured on the 15th day and last day
of each month, or more frequently if determined by the Secretary-Treasurer. In the event
the market value of the collateral no longer satisfies the collateralization level required,
then the repurchase agreement provider or depository, as appropriate, shall provide
additional collateral within two business days to satisfy the required level. The maturity
of the pledged collateral shall not exceed the maximum specified in the Section
"Maximum Maturity" of this Policy.
Repurchase Agreements. In order to anticipate potential market changes and provide a
level of security for all funds, the collateralization level shall be 103% of the amount of
the repurchase agreement and shall be based on the market value of principal and accrued
interest of the pledged collateral. Acceptable collateral for repurchase agreements shall
consist of U.S. Treasury obligations or obligations of U.S. government agencies or
instrumentalities that are eligible to be delivered via the Federal Reserve's Fed wire book
entry system Securities will be delivered to the District's designated Custodial Agent.
Funds and securities will be transferred on a delivery vs. payment basis.
Time Certificates of Deposit and Deposits with Banking Institutions. In order to
anticipate potential market changes and provide a level of security for all funds, the
collateralization level shall be 103% of the amount of the time deposits and demand
deposits with any depository (less the amount, if any, which is subject to federal deposit
insurance) and shall be based on the market value of principal and accrued interest of the
pledged collateral. Acceptable collateral for time certificates of deposit and deposits with
banking institutions shall consist of U.S. Treasury obligations or other interest-bearing
securities guaranteed as to principal and interest by the U.S. or an agency or
instrumentality of the U.S. (and approved by the state Secretary-Treasurer).
All securities, which serve as collateral against the deposits of a banking
institution, must be safe kept at a non-affiliated custodial facility. Banking institutions
pledging collateral against deposits must, in conjunction with the custodial agent, furnish
the necessary custodial receipts within five business days from the settlement date.
The District shall have a depository contract and pledge agreement with each
bank that will comply with the Financial Institutions, Reform, Recovery and Enforcement
Act of 1989 (FIRREA). This will ensure that the District's security interest in collateral
pledged to secure deposits is enforceable against the receiver of a failed financial
institution.
XI. MAXIMUM MATURITIES
To the extent possible, the District shall attempt to match its investments with its
anticipated cash flow requirements. Investments in repurchase agreements shall mature
and become payable in not more than 90 days from the date of purchase. The District will
not directly invest in securities or make a time deposit with a stated maturity of more than
five (5) years from the date of purchase. The District’s weighted average maturity will
not exceed three (3) years and will be consistent with the investment objectives for the
funds being managed.
Because of inherent difficulties in accurately forecasting cash flow requirements,
a portion of the portfolio should be continuously invested in readily available funds such
as in bank deposits or overnight repurchase agreements to ensure that appropriate
liquidity is maintained to meet ongoing obligations
XII. DIVERSIFICATION
The investments shall be diversified to minimize the risk of loss resulting from
over concentration of assets in specific maturity, specific issuer, or specific class of
securities. Diversification strategies shall be established and periodically reviewed. At a
minimum, diversification standards by security type and issuer shall be:
a. U.S. treasuries and securities having principal
And/or interest guaranteed by the U.S. Government ....................................... 100%
b. Collateralized time and demand deposits ........................................................ 100%
c. U.S. Government agencies, and government
Sponsored enterprises ........................................................................................ 60%
d. Collateralized repurchase agreements .......................................... no more than 50%
e. U.S. Government agency callable securities................................ no more than 30%
f. Commercial Paper ........................................................................ no more than 25%
g. Bankers' Acceptances .................................................................. no more than 25%
XIII. AUTHORIZED SECURITIES DEALERS AND DEPOSITORY BANKS
Pursuant to the Plan, the Secretary-Treasurer shall maintain a list of Authorized
Depository Banks and Securities Dealers. The Secretary-Treasurer shall select those
financial institutions that, in his or her opinion, will be most commensurate with the
safety of District funds. In order to assist the Board, the Secretary-Treasurer shall employ
a formal competitive procurement process for selecting financial institutions for the
deposit of District funds, as well as for selecting broker/dealers for purchase of securities
and for other banking-related services.
Securities Dealers. For brokers and dealers of government securities the
Secretary- Treasurer shall select only primary government dealers that report daily to the
New York Federal Reserve Bank or meet the Uniform Net Capital Rule (Rule 15C3-1) of
the Securities and Exchange Commission, any Authorized Depository Bank, or any
securities dealer with offices in the District or otherwise approved by the Secretary-
Treasurer. Any firm seeking to qualify as a securities dealer shall supply the Secretary-
Treasurer, on behalf of the Board, the information requested by Secretary-Treasurer as a
part of the review process described above. The requested information shall be
determined b y the Secretary-Treasurer.
XIV. PERFORMANCE BENCHMARK
The investment portfolio as maintained is invested to provide funds as needed and
specified by the direction of the various departments of the District. Given this strategy,
the basis used to determine whether market yields are being achieved shall be the Merrill
Lynch 1 – 3 Year U.S. Treasury Index.. For the purposes of performance measurement,
the District seeks to calculate the return of the investment portfolio on a total market
value return basis.
XV. REPORTING
The Secretary-Treasurer shall provide the Board investment reports which
provide a clear and accurate picture of the current status of the investment portfolio. The
Secretary-Treasurer's report should include comments on the fixed income markets and
economic conditions and such other matters as Secretary-Treasurer's believes necessary.
The monthly report shall also include a prospective overview to the Secretary-Treasurer's
investment strategy for the succeeding monthly period. The report shall contain schedules
that provide the following:
a. A listing of individual securities held by the District should be made available on
the District’s website.
b. For each individual security listed, the report shall include: coupon, yield, par
value, amortized book value and market value;
c. Percentage of the portfolio represented by each investment category;
d. For any time certificates of deposit, deposits with banking institutions or any
repurchase agreements, a listing of the collateral pledged to such investments; and
e. Additional information related to the portfolio as the Secretary-Treasurer deems
necessary.
XVI. CONFLICTS WITH CONSTITUTION OF MISSOURI
The Plan provides that the District may invest "funds not immediately needed for
the purpose to which said funds are applicable, in the same manner as the state treasurer
may invest funds of the State of Missouri pursuant to Section 15, Article IV of the
Constitution of Missouri, as amended from time to time." This Policy is intended to
conform to the provisions of the Constitution of Missouri and to provide the District the
same investment alternatives and limitations as the state treasurer under the Constitution
of Missouri. In interpreting the provision of this Policy, the provision of Section 15,
Article IV of the Constitution of Missouri, as amended from time to time, shall govern
and provisions of this Policy shall be interpreted in a manner consistent therewith.
XVII. ADOPTION OF POLICY
Exemption. Any investment currently held that does not meet the guidelines of this
Policy shall be exempt from the requirements of this Policy. At maturity or liquidation,
such monies shall be reinvested only as provided by this Policy.
Adoption. This Policy shall be adopted by resolution of the District. The Policy shall be
reviewed annually by the Board and recommended changes will be presented to the
Board for consideration.