RESPONSIBLE CITY AGENCY: Treasurer’s Division
KEYWORDS: Investment, money management, depository, principal, liquidity.
1. General
1.1 Salt Lake City Corporation invests its available funds in accordance with principles of sound treasury management and according to the terms and conditions of the Utah State Money Management Act of 1974 and Rules of the State Money Management Council, as currently amended (the “Act”). (See Section 51-7-11 of the Act.)
1.2 The following investment objectives, in order of priority, are met when investing public funds: safety of principal, need for liquidity, and maximum yield on investments consistent with the first two objectives.
1.3 City funds shall only be deposited with a qualified depository. Investment transactions shall only be conducted through certified depositories, certified dealers, or directly with issuers of the investment securities (see UCA 51-7-1, et seq.).
1.4 Definitions:
A. City Investment Committee: a committee consisting of the City Treasurer, who serves as chair; the Director of the Department of Management Services; the Mayor’s Chief of Staff; and the City’s duly appointed Financial Advisor, who serves as an ex officio member.
B. Certified Dealer: a primary reporting dealer recognized by the Federal Reserve Bank of New York; or a broker dealer who has and maintains an office and a resident registered principal in the state; meets the capital requirements established by State Money Management Council rules; meets the requirements for good standing established by State Money Management Council rule; and is certified by the Director of the Division of Securities of the Department of Commerce as meeting quality criteria established by State Money Management Council rule.
C. Certified Depository: any out of state financial institution that is certified by the commissioner of Financial Institutions as meeting quality criteria established by rule of the State Money Management Council.
D. Qualified Depository: a Utah depository institution that is authorized to conduct business in this state, whose deposits are insured by an agency of the federal government and that has been certified by the commissioner of financial institutions as having met the established requirements and the rules of the State Money Management Council to be eligible to receive deposits of public funds.
2. City Investments
2.1 City funds can be invested only as outlined in Section 51-7-11 of the Utah State Money Management Act, as currently amended.
2.2 The City Treasurer must take delivery of all investments purchased. This may be accomplished by the City Treasurer taking physical delivery of the security, or delivering the security to a bank or trust company designated by the City Treasurer for safekeeping. The City Treasurer may use a qualified depository bank to safe keep securities or maintain an account with a money center bank for the purpose of settling investment transactions and safekeeping and collecting those investments.
2.3 Repurchase agreements with qualified depositories may be supported by a safe keeping receipt issued by a qualified depository; otherwise, the securities must be delivered to the custody of the City Treasurer or a safekeeping bank or trust company designated by the City Treasurer.
2.4 Investment in the State Treasurer’s Pool will be supported by a deposit receipt issued by the State Treasurer’s Office.
2.5 The remaining term to maturity of an investment may not exceed the period of availability of the funds to be invested.
2.6 The investment of City funds will not be of a speculative nature.
2.7 The City Treasurer shall not invest more than 25% of total City funds or 25% of the qualified depository’s allotment, whichever is less, in any one qualified depository. The City Treasurer may not invest more than 20% of total City funds in any one certified out-of-state depository institution. There shall be no limitation placed on the amount invested with the State Treasurer’s Pool and other money market mutual funds, provided that the overall standards of investments achieve this order’s objectives.
2.8 All funds pledged or otherwise dedicated to the payment of interest and principal of bonds issued by the City shall be invested in accordance with the terms of the borrowing instruments applicable to such bonds or if none of those provisions are applicable, in accordance with Section 51-7-11 of the Act, as currently amended.
3. City Investment Committee
3.1 The City Investment Committee has the authority to adjust provisions of this order as necessary. The Committee is responsible for the prudent review of the City’s Investment Policy within the boundaries of the Utah Money Management Act (see UCA 51-7-1).
CURRENT REFERENCES: UCA 51-7-1; Utah State Money Management Act
PRE-1995 REFERENCES: City policy 3.08.200
EFFECTIVE DATE: October 1, 1995
DATE APPROVED BY CABINET: September 6, 1995