HomeMy WebLinkAbout2009.07.21_OPGA AgendaPUBLIC NOTICE OF THE MEETING OF THE
OWASSO PUBLIC GOLF AUTHORITY
TYPE OF MEETING: Regular
DATE: July 21, 2009
TIME: 6:30 p.m.
PLACE: Council Chambers, Old Central Building
109 N. Birch
A Notice of the meeting and agenda filed in the office of the City Clerk and posted at City Hall
at 5:00 p.m. on Friday, July 17, 2009.
J i�k( lbmu
MStevens, Deputy City Clerk
AGENDA
l . Call to Order
Chairman Stephen Cataudella
2. Roll Call
3. Consideration and appropriate action relating to a request for approval of the Consent
Agenda. All matters listed under "Consent" are considered by the Trustees to be routine
and will be enacted by one motion. Any Trustee may, however, remove an item from the
Consent Agenda by request. A motion to adopt the Consent Agenda is non -debatable.
A. Approval of the Minutes of the July 7, 2009 Regular Meeting.
Attachment # 3-A
B. Approval of Claims.
Attachment # 3-B
C. Acknowledgement of receiving the monthly FY 2008-2009 budget status report.
Attachment # 3-C
0:\MANAGERIAL\Agendas\OPGA\2009\072 Ldoe
Owasso Public Golf Authority
July 21, 2009
Page 2
4. Consideration and appropriate action relating to items removed from the Consent Agenda.
5. Consideration and appropriate action relating to a request for Trustee approval of
Resolution No. 2009-02, adopting an investment policy for the City of Owasso.
Ms. Hess
Attachment # 5
Staff will recommend Trustee approval of Resolution No. 2009-02.
6. Report from OPGA Manager.
7. Report from OPGA Attorney.
8. New Business. (New Business is any item of business which could not have been foreseen
at the time of posting of the agenda.)
9. Adjournment.
O: \MANAGERIAL\Agendas\OPGA\2009\072I -doc
OWASSO PUBLIC GOLF AUTHORITY
MINUTES OF REGULAR MEETING
Tuesday, July 7, 2009
The Owasso Public Golf Authority met in regular session on Tuesday, July 7, 2009 in the
Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the
City Hall bulletin board at 5:00 p.m. on Thursday, July 2, 2009.
ITEM 1. CALL TO ORDER
Chairman Cataudella called the meeting to order at 6:59 p.m.
ITEM 2. ROLL CALL
PRESENT ABSENT
Steve Cataudella, Chairman
Doug Bonebrake, Vice Chair
Wayne, Guevara, Trustee
Jon Sinex, Trustee
Bryan Stovall, Trustee
A quorum was declared present.
STAFF
Rodney Ray, Authority Manager
ITEM 3. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A
REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA
A. Approval of Minutes of the June 16, 2009 Regular Meeting.
B. Approval of Claims.
Mr. Sinex moved, seconded by Mr. Guevara, to approve the OPGA Consent Agenda with claims
totaling $18,647.44. The payroll payment report for pay period ending 6/20/09 was included for
review.
YEA: Bonebrake, Cataudella, Guevara, Sinex, Stovall
NAY: None
Motion carried 5-0.
Owasso Public Golf Authority
July 7, 2009
ITEM 4. CONSIDERATION AND APPROPRIATE ACTION RELATING TO ITEMS
REMOVED FROM THE CONSENT AGENDA
No action was required on this item.
ITEM 5. REPORT FROM OPGA MANAGER
Mr. Ray commented that the Golf Course had held up very well during the last two weeks of
excessive heat. The golfers he had visited were pleased with the shape of the greens.
Chairman Cataudella requested reports on the number of holes played, etc. Mr. Ray said those
reports would be available at the 7/14 work session.
ITEM 6. REPORT FROM OPGA ATTORNEY
No report
ITEM 7. NEW BUSINESS
None
ITEM 8. ADJOURNMENT
Mr. Guevara moved, seconded by Mr. Sinex, to adjourn.
YEA: Bonebrake, Cataudella, Guevara, Sinex, Stovall
NAY: None
Motion carried 5-0 and the meeting was adjourned at 7:02 p.m.
Pat Fry, Minute Clerk
Stephen Cataudella, Chairman
4
Claims List
07/21 /09
Budget Unit Title
Vendor Name
Payable Description
Payment Amouni
OPGA
JPMORGAN CHASE BANK
PING -MERCHANDISE
129.48
JPMORGAN CHASE BANK
CALLAWAY-MERCHANDISE
298.73
JPMORGAN CHASE BANK
CALLAWAY-MERCHANDISE
715.90
JPMORGAN CHASE BANK
REASORS-FOOD
57.95
BGR DAILY ACCT.
REIMB PETTY CASH
787.95
BEN E. KEITH CO.
FOOD
485.79
BOTTLING GROUP, LLC PEPSI-COLA
PEPSI PRODUCTS
30.00
BOTTLING GROUP, LLC PEPSI-COLA
PEPSI PRODUCTS
30.00
BEN E. KEITH CO.
FOOD
343.33
EXECUTIVE COFFEE SERVICES
COFFEE SERVICE
74.84
BEN E. KEITH CO.
FOOD
789.33
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
160.30
BGR DAILY ACCT.
REIMB PETTY CASH
1,712.60
JPMORGAN CHASE BANK
SAVE THE MOMENT-MERCHAND
70.00
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
4,455.41
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
124.01
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
203.78
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
137.20
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
195.26
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
152.40
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
485.28
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
258.17
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
217.68
JPMORGAN CHASE BANK
REASORS-FOOD
24.37
JPMORGAN CHASE BANK
REASORS-FOOD
56.07
JPMORGAN CHASE BANK
REASORS-FOOD
54.88
JPMORGAN CHASE BANK
GEAR FOR SPORT-MERCHANDIS
184.00
JPMORGAN CHASE BANK
GEAR FOR SPORT-MERCHANDIS
60.44
JPMORGAN CHASE BANK
WALMART-FOOD
77.80
JPMORGAN CHASE BANK
ACUSHNET-MERCHANDISE
159.20
BEN E. KEITH CO.
FOOD
279.09
BOTTLING GROUP, LLC PEPSI-COLA
PEPSI PRODUCTS
1,738.25
JPMORGAN CHASE BANK
OAKLEY-MERCHANDISE
90.56
JPMORGAN CHASE BANK
CALLAWAY-MERCHANDISE
298.73
TOTAL OPGA 14,938.78
CART OPERATIONS JUSTICE GOLF CAR CO INC GOLF CART REPAIR PARTS 444.70
TOTAL CART OPERATIONS 444.70
COURSE MAINT
AEP/PSO
ELECTRIC USE
1,589.77
ONEOK, INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
44.20
TIMMONS OIL COMPANY
UNLEADED GAS
1,238.91
DAVID B. NOWLAND
FERTILIZER
1,505.00
DAVID B. NOWLAND
WETTING AGENT
135.00
YALE CLEANERS, INC.
TOWEL SERVICE
16.00
Page 1
Claims List
07/21 /09
Budget Unit Title
Vendor Name
Payable Description
Payment Amounl
COURSE MAINT...
YALE CLEANERS, INC.
UNIFORM SERVICE
7.00
JUSTICE GOLF CAR CO INC
BREAK DRUM
45.00
AMC INDUSTRIES INC
VALVE FITTINGS
114.78
REGAL CHEMICAL COMPANY
FUNGICIDE
537.33
REGAL CHEMICAL COMPANY
FERTILIZER
3,660.00
PROFESSIONAL TURF PRODUCTS, LP
O RINGS AND DRIVES
126.05
JPMORGAN CHASE BANK
HOME DEPOT-DITCHWITCH
114.40
JPMORGAN CHASE BANK
WALMART-OIL
31.90
ESTES, INCORPORATED
HERBICIDE
216.00
JPMORGAN CHASE BANK
ALLIED -BEARINGS
36.40
AT&T
CONSOLIDATED PHONE BILL
42.45
JPMORGAN CHASE BANK
JOHNSTONE SUPPLY -WIRE NUT
32.70
JPMORGAN CHASE BANK
GRAINGER-PAPER CUPS
32.13
JPMORGAN CHASE BANK
DXPE-SPRAYING PUMP
440.69
JPMORGAN CHASE BANK
ADVANCE AUTO -DRILL BIT
1.93
JPMORGAN CHASE BANK
LOWES-PAPER CUPS
17.28
JPMORGAN CHASE BANK
OREILLYS-SPARK PLUGS
11.94
JPMORGAN CHASE BANK
AMC -PVC FITTINGS
29.10
JPMORGAN CHASE BANK
HOME DEPOT -WATER COOLERS
79.92
JPMORGAN CHASE BANK
LOWES-SUPPLIES
72.33
JPMORGAN CHASE BANK
OFFICE DEPOT -PAPER CUPS
6.90
JPMORGAN CHASE BANK
HOME DEPOT -RETURN
-29.57
JPMORGAN CHASE BANK
HOME DEPOT -TAX REFUND
-4.76
JPMORGAN CHASE BANK
HOME DEPOT-WIRE/SWITCHES
60.59
JPMORGAN CHASE BANK
HOME DEPOT -SUPPLIES
86.72
JPMORGAN CHASE BANK
CULLISON-PUMP FITTING
4.59
JPMORGAN CHASE BANK
HOME DEPOT -FAN SUPPLIES
73.41
JPMORGAN CHASE BANK
LOCKE SUPPLY -PUMP FITTING
5.66
BROWN FARMS LLC
BERMUDA SOD
25.00
W.W. GRAINGER, INC. DBA GRAINGER
PUMP SEAL
27.85
TIMMONS OIL COMPANY
UNLEADED GAS
537.36
TIMMONS OIL COMPANY
UNLEADED GAS
1,236.95
TIMMONS OIL COMPANY
UNLEADED GAS
546.01
JPMORGAN CHASE BANK
ATWOODS-WATER HOSE
64.48
ESTES, INCORPORATED
FUNGICIDES
1,224.84
ESTES, INCORPORATED
SPRAY DYE/FERTILIZER
180.00
ESTES, INCORPORATED
FERTILIZER
234.93
ESTES, INCORPORATED
FUNGICIDES
1,224.84
YALE CLEANERS, INC.
SHOP TOWEL SERVICE
16.00
YALE CLEANERS, INC.
UNIFORM SERVICE
7.00
YALE CLEANERS, INC.
SHOP TOWEL SERVICE
16.00
YALE CLEANERS, INC.
UNIFORM SERVICE
7.001
JPMORGAN CHASE BANK
OREILLY-SPARK PLUGS
13.93
JPMORGAN CHASE BANK
OREILLY-HYDRAULIC HOSE
27.58
JPMORGAN CHASE BANK
GRAINGER-PAPER CUPS
64.26
Page 2
Claims List
07/21 /09
Budget Unit Title
Vendor Name
Payable Description 1payment
Amount
COURSE MAINT... JJPMORGAN
CHASE BANK
LOWES-WIRE
73.32
TOTAL COURSE MAINT 15,909.10
FOOD & BEV
BEN E. KEITH CO.
SUPPLIES
134.64
CROWL MECHANICAL INC
FREEZER REPAIR
193.50
CROWL MECHANICAL INC
FREEZER REPAIR
363.00
CROWL MECHANICAL INC
FREEZER REPAIR
75.00
JPMORGAN CHASE BANK
PAYPAY-LINENS
58.50
SADDORIS TEXTILE MAINTENANCE, INC
LINEN RENTAL
82.44
BEN E. KEITH CO.
SUPPLIES
218.18
BEN E. KEITH CO.
SUPPLIES
90.07
SADDORIS TEXTILE MAINTENANCE, INC
LINEN SERVICE
92.89
JPMORGAN CHASE BANK
DRESSMYEVENT-LINENS
152.50
SADDORIS TEXTILE MAINTENANCE, INC
LINEN SERVICE
82.44
BEN E. KEITH CO.
SUPPLIES
225.52
TOTAL FOOD & BEV 1,768.68
GOLF ADMIN
GREENWAY GOLF, INC
CONSULTING FEE
2,500.00
ONEOK, INC OKLAHOMA NATURAL GAS
NATURAL GAS USAGE
340.76
AEP/PSO
ELECTRIC USE
1,676.01
AT&T
CONSOLIDATED PHONE BILL
189.93
COX COMMUNICATIONS
CABLE
59.16
WASTE MANAGEMENT QUARRY LANDFILL
REFUSE SERVICE
231.10
COURSE TRENDS, INC
WEB HOSTING
355.00
AT&T ADVERTISING & PUBLISHING
YELLOW PAGES
188.56
SAV-ON PRINTING & SIGNS LLC
POSTCARDS
25.00
ALL MAINTENANCE SUPPLY, INC
PAPER SUPPLIES
154.76
JPMORGAN CHASE BANK
MONARCH MEDIA -ADVERTISING
374.50
GOLFSWITCH, INC
ONLINE TEE TIMES
150.00
TOTAL GOLF ADMIN 6,244.78
39,306.0
FUND GRAND TOTAL
OPGA GRAND TOTAL $39,306.04
Page 3
OWASSO PUBLIC GOLF AUTHORITY
PAYROLL PAYMENT REPORT
PAY PERIOD ENDING 07/04/09
Department Payroll Expenses Total Expenses
Golf Shop Operations
3,526.34
5,119.66
Cart Operations
2,313.53
2,653.62
Golf Course Operations
12,804.30
16,919.11
Food & Beverage
3,755.59
4,655.81
General & Administration
5,434.22
7,543.09
FUND TOTAL
27,833.98
36,891.29
CITY OF OWASSO
OWASSO PUBLIC GOLF AUTHORITY
FISCAL YEAR 2008-2009
Statement of Revenues & Expenses
As of June 2009 and 2008**
June 30, 2009
Month Year
To -Date To -Date
OPERATING REVENUES
June 30, 2008
Golf shop fees
76,882
511,164
914,000
55.93%
62,986
510,597
835,374
61.12%
Merchandise sales
31,904
171,131
210,000
81.49%
21,620
168,836
205,450
82.18%
COS -- merchandise
(30,566)
(143,386)
(150,000)
95.59%
(23,654)
(148,081)
(153,505)
96.47%
Food & beverage
23,224
158,026
250,000
63.21 %
21,042
145,370
222,950
65.20%
COS -- food & beverage
(10,326)
(69,646)
(68,000)
102.42%
(8,734)
(61,237)
(69,786)
87.75%
Interest & other
2,903
31,791
33,697
94.34%
(634)
50,922
55,000
92.59%
Transfer from General Fund
-
-
-
-
-
-
-
0.00%
TOTAL OPERATING REVENUES
94,021
659,080
1,189,697
55.40%
72,626
666,407
1,095,483
60.83%
OPERATING EXPENSES:
Personal services
81,506
770,209
803,064
95.91 %
77,486
727,616
660,818
110.11 %
Materials & supplies
8,339
111,465
104,005
107.17%
11,351
99,501
89,130
111.64%
Other services
22,925
155,295
166,149
93.47%
11,148
163,735
218,725
74.86%
Capital outlay
-
61,334
61,569
99.62%
18,763
73,126
74,900
97.63%
Debt service
2,338
50,558
54,910
92.07%
4,514
52,413
51,910
100.97%
TOTAL OPERATING EXPENSES
115,108
1,148,861
1,189,697
96.57%
123,262
1,116,390
1,095,483
101.91%
NET INCOME (LOSS)
-
(50,636)
(449,983)
-
(21,087)
(489,781)
**Note: Report is not final for fiscal year end. Accounts payable are still in process.
MEMORANDUM
TO: THE HONORABLE MAYOR AND COUNCIL
CITY OF OWASSO
THE HONORABLE CHAIR AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
THE HONORABLE CHAIR AND TRUSTEES
OWASSO PUBLIC GOLF AUTHORITY
FROM: ANGELA HESS
FINANCE DIRECTOR
SUBJECT: RESOLUTION ADOPTING AN INVESTMENT POLICY
DATE: July 17, 2009
BACKGROUND:
Currently there is not a formally adopted written investment policy for the City of Owasso or the
Trust Authorities. While Oklahoma law (OS Title 62, Chapter 2, Section 348.1) provides a basic
framework for investment direction, a written investment policy is a recommended practice of
the Government and Finance Officers Association (GFOA). The investment policy dictates,
among other things, what investments may be entered into and for what purposes.
Oklahoma statutes are restrictive and very specific regarding the types of authorized investments
and the collateralization methods required for municipalities. This policy will not change the
investment practices currently in use by the City. The policy creates a formal record of the
procedures and documents the City Council and Authority approval.
The primary purpose for the City's investment policy is to ensure that City funds are invested in
a manner which will provide the highest investment return with the maximum security while
meeting the daily cash flow needs of the city and complying with all state statutes governing the
investment of public funds.
ADDITIONAL INFORMATION:
Attached is a written investment policy for the City of Owasso and its Trust Authorities. The
proposed investment policy is based on model investment policies developed by the GFOA and
Crawford & Associates with modifications taken from the investment policies of other
municipalities.
REQUESTED ACTION:
Staff recommends Trustee approval of a resolution adopting the investment policy.
ATTACHMENTS:
Investment Policy
Resolution 2009-02
The city Vilithout Limits. Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
Purpose
The purpose of the City of Owasso's Investment Policy is to invest its funds in a manner which will
provide the highest investment return with the maximum security while meeting the daily cash flow
needs of the city and comply with all state statutes governing the investment of public funds.
The Investment Policy shall comply with the Owasso Code of Ordinances, 7-101.
The Investment Policy shall comply with Oklahoma State Statute 62-348.1 as it pertains to authorized
investments and disposition of income.
Policy Statement
Effective cash management is recognized as essential to good fiscal management. An aggressive cash
management and investment policy will take advantage of investment interest as a viable and material
revenue source for all operating and capital funds. The City's portfolio shall be designed and managed
in a manner responsive to the public trust and consistent with state and local law.
It is the policy of the City that, giving due regard to the safety and risk of investment, all available funds
shall be invested in conformance with legal and administrative guide lines and, to the maximum extent
possible, at the highest rates obtainable at the time of investment.
Scope
This Investment Policy applies to all financial assets of the City of Owasso, and its Trust Authorities.
These assets are accounted for in the various funds of the City of Owasso and include the general fund,
special revenue funds, capital project funds, enterprise funds, internal service funds, trust and agency
funds and any new fund established by the Owasso City Council.
Prudence
Investments shall be made with judgment and care, emphasizing the preservation of capital as well as
the income to be derived.
Objectives
The primary objectives of investment activities, in order of priority, shall be safety, diversification,
liquidity and return on investment.
6
OeT.h city witho't Limits. Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
Safety --Safety of principal is the foremost objective of the investment program. Investments shall be
undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The
objective will be to reduce credit risk and interest rate risk.
Diversification --The investments will be diversified by security type and institution in order that
potential losses on individual securities do not exceed the income generated from the remainder of the
portfolio.
Liquidity --The investment portfolio shall remain sufficiently liquid to meet all operating requirements
that may be reasonably anticipated.
Return on Investment --The investment portfolio shall be designed with the objective of obtaining a rate
of return throughout the budgetary and economic cycles, taking into account the investment risk
constraints and the cash flow characteristics of the portfolio.
Delegation of Authority to Make Investments
The City Treasurer or designee shall act in accordance with established written procedures and internal
controls for the operation of the investment program consistent with this Investment Policy.
Procedures should include references to: safekeeping, delivery vs. payment, investment 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
established procedures. The City Treasurer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials.
Ethics and Conflict of Interest
Any officers or employees of the City of Owasso involved in the investment process shall refrain from
personal business activity that could conflict or give the appearance of conflict with the proper
execution of the investment program or impair their ability to make impartial decisions and shall at least
annually advise the City Manager or City Manager designee of any personal financial interest in any
financial institution that conducts business with the City of Owasso. The officers or employees shall
refrain from undertaking personal investment transactions with the same individual or broker/dealer
with which business is conducted on behalf of the City of Owasso.
14 :�C71
City Witt m itsM
0,ThehouLi.. Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
Authorized Financial Institutions/Financial Dealers
Public deposits of funds shall be made in qualified public depositories authorized to do business in the
State of Oklahoma. The City Council shall approve and designate additional authorized depository
institutions by resolution.
Funds may be invested in certificates of deposit (CDs) in institutions which have been approved by the
City Council as a depository banking institution and which meet the following requirements:
1. Sufficient collateral to equal the amount of 100 percent of the City's investments shall be
pledged prior to the deposit of the funds and for the terms of the investment, in accordance
with this policy;
2. Established record of fiscal health and service, as determined by a rating of "C minus" or above
by independent rating agencies (such as Lace Financial Corporation or Sheshunoff Bank Rating
Service) or equivalent past dealings with the City Treasurer's office;
3. Collateral agreements must be approved prior to deposit of the funds as provided for in the
"Security for Local Public Deposits Act".
Authorized and Suitable Investments
The City Treasurer is empowered by the City Council to invest in any of the securities authorized in the
Oklahoma State Statutes, Title 62, Section 348.1- 348.3. Investments where collateral or funds to be
invested has been deposited with a trustee or custodian bank in irrevocable trust may also invest in any
or all of the following:
a. Obligations of the United States government, its agencies and instrumentalities;
Defined as:
A debt security issued by a federal agency. Most federal agencies are not backed by the
full faith and credit of the U.S. government. GNMA (Government National Mortgage
Association) is an example of an agency security backed by the U.S. Government, but
FNMA (Fannie Mae), FHLB (Federal Home Loan Bank), FHLM (Federal Home Loan
Mortgage) and others are not backed. The City will use only agency securities that are
backed by U.S. Government or have an AAA rating.
b. Collateralized or insured certificates of deposit and other evidences of deposit at banks,
savings banks, savings and loan associations and credit unions located in this state, or fully
insured certificates of deposit at banks, savings banks, savings and loan associations and
credit unions located out of state;
The City Without Li m its`l. Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
Defined as:
CDs are similar to savings accounts in that they are insured and thus virtually risk free,
they are "money in the bank" (CDs are insured by the FDIC for banks or by the NCUA for
credit unions). They are different from savings accounts in that the CD has a specific,
fixed term (often three months, six months, or one to five years), and, usually, a fixed
interest rate. It is intended that the CD be held until maturity, at which time the money
may be withdrawn together with the accrued interest. In exchange for keeping the
money on deposit for the agreed -on term, institutions usually grant higher interest rates
than they do on accounts from which money may be withdrawn on demand.
c. Savings accounts or savings certificates of savings and loan associations, banks, and credit
unions, to the extent that the accounts or certificates are fully insured by the FDIC;
d. County, municipal, or school district direct debt obligation for which an ad valorem tax
may be levied or bond and revenue anticipation notes, money judgments against such
county municipality or school district ordered by a court of record or bond and revenue
anticipation notes issued by a public trust for which the City of Owasso is beneficiary
thereof;
e. Negotiable certificates of deposit issued by a nationally or state -chartered bank, a savings
bank, a savings and loan association or a state -licensed branch of a foreign bank. Purchases
of negotiable certificates of deposit shall not exceed ten percent (10%) of the surplus funds
of the city or county which may be invested pursuant to this section. Not more than one-
half (1/2) of the ten percent (10%) limit shall be invested in any one financial institution
specified in this paragraph;
Defined as:
A certificate of deposit with a minimum face value of $100,000. These are guaranteed by
the bank and can usually be sold in a highly liquid secondary market, but they cannot be
cashed -in before maturity.
f. Prime bankers' acceptances which are eligible for purchase by the Federal Reserve System
and which do not exceed 270 days' maturity. Purchases of prime bankers' acceptances shall
not exceed ten percent (10%) of the surplus funds of the City or county which may be
invested pursuant to this section. Not more than one-half (1/2) of the ten percent (10%)
shall be invested in any one commercial bank pursuant to this paragraph;
Defined as:
A short-term credit instrument created by a nonfinancial firm and guaranteed by a bank
as to payment. Acceptances are traded at discounts from face value in the secondary
market on the basis of the credit quality of the guaranteeing banks. These instruments
have become a popular investment for money market funds. Also called acceptance.
The city without Limits. Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
g. Prime commercial paper which shall not have a maturity that exceeds one hundred eighty
(180) days nor represent more than ten percent (10%) of the outstanding paper of an
issuing corporation. Purchases of prime commercial paper shall not exceed seven and one-
half percent (7%%) of the surplus funds of the city which may be invested pursuant to this
section;
Defined as:
Highly -rated commercial paper that is considered investment grade. Commercial paper
is an unsecured promissory note sold by a corporation. It has a fixed maturity of 1 to 270
days and is usually sold at a discount from face value.
Repurchase agreements (Repo) that have underlying collateral consisting of those items
specified in paragraphs a through a of this subsection; and
Defined as:
A form of short-term borrowing for dealers in government securities. The dealer sells the
government securities to investors, usually on an overnight basis, and buys them back
the following day.
For the party selling the security (and agreeing to repurchase it in the future) it is a repo,
for the party on the other end of the transaction, (buying the security and agreeing to
sell in the future) it is a reverse repurchase agreement.
Repos are classified as a money-market instrument. They are usually used to raise short-
term capital.
Money market mutual funds regulated by the Securities and Exchange Commission and
which investments consist of those items and those restrictions specified in paragraphs a
through f of this subsection.
Defined as:
Mutual funds that invest solely in money market instruments (short term debt
instruments, such as Treasury bills, commercial paper, bankers' acceptances, repurchase
agreements, agency securities, and federal funds).
The City Without Limits. Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
Collateral ization
The City Treasurer is authorized by statute to invest in certain securities when those securities are
collateralized, as evidenced by pledge of joint custody. In all cases of collateralization, the collateral
shall be held by a third party custodian with whom the City has a current custodial agreement or be held
in the name of parties by the Federal Reserve Bank servicing Oklahoma. The custodian shall issue a
custody receipt to the City Treasurer identifying the security and stating that it is pledged to the City of
Owasso.
The amount of collateral to be pledged for the security of the City's deposits and securities shall be
consistent with the provisions of the Oklahoma "Security for Local Public Deposits Act" and additional
standards established by the City Treasurer for the purpose of securing public funds and deposits of the
City.
Collateral Requirements
To qualify as depositor, a bank, trust company, savings and loan association, or savings bank must
collateralize City deposits, including interest earned and/or accrued (the amount of money on deposit
with an institution at any given time) with any combination of securities, Federal Home Loan Bank
letters of credit, or corporate surety bonds at the cost to the depository.
Required collateralization levels shall be as follows:
Surplus cash in demand deposit account 100%
Certificate of deposits 100%
Repurchase agreement 100%
Acceptable instruments for collateralization of cash in demand deposit accounts and certificates of
deposit are listed below:
(a) Direct obligations of the United States Government, its agencies or instrumentalities to the
payment of which the full faith and credit of the U.S. Government is pledged, or obligations
to the payment of which the full faith and credit of this state is pledged.
(b) Obligations of the Government National Mortgage Association, Federal National Mortgage
Association, or Federal Home Loan Mortgage Corporation, or federal land bank or banks or
federal home loan bank notes or bonds.
(c) Obligations of the state or of a county, municipality, or school district of this state pledged
or of an instrumentality thereof;
(d) General obligation bonds of any other state in the U.S.; and
(e) Surety bonds and letters of credit, under certain specified conditions.
The City Without Limits.
Acceptable collateral for repurchase agreements:
Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
(a) United States Treasury Bills, Notes, Bonds or Treasury Certificates;
(b) Governmental National Mortgage Association obligations;
(c) Federal National Mortgage Association obligations;
(d) Federal Home Loan Mortgage Corporation obligations;
(e) Federal Farm Credit Bank obligations;
(f) Federal Land Bank obligations;
(g) Federal Home Loan Bank obligations; provided
The City Treasurer shall verify as appropriate and at least quarterly, that the market value of collateral
pledged is sufficient to cover the security and any additional deposits at the institution. The City
Treasurer shall have discretion to refuse any instrument as appropriate collateral, notwithstanding the
tenets of this Investment Policy.
Acceptable collateral will be subject to a recognized and readily available market pricing.
Safekeeping and Custody
All investment securities purchased, including collateral for repurchase agreements, shall be held in
safekeeping by a designated third party custodian. The institution shall issue a safekeeping receipt for
each security, listing the specific instrument, par value, rate, CUSIP and any other pertinent information.
In addition the safekeeping institutions shall send a statement on at least a quarterly basis listing all
securities held in each safekeeping account with market values that shall be verified.
Deliver vs. Payment
All trades will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an
eligible financial institution simultaneously with the release of funds. Securities will be held by the third -
party custodian, as evidenced by safekeeping receipts, held in the City's name.
Diversification
The City of Owasso will diversify its investments by institution. With the exception of U.S. Treasury
securities and authorized pools, no more than fifty percent (50%) of the City's total investment portfolio
will be invested in a single financial institution.
0.006, a,;,
The city without Limit`". Investment Policy
Issuing Office: Finance Department
Originally Issued: July 2009
Maximum Maturities
The City of Owasso will attempt to match its investments with anticipated cash flow requirements.
Unless matched to a specific cash flow, the City of Owasso will not directly invest in securities maturing
more than three years from the date of purchase.
Reserve funds may be invested in securities exceeding three years if the maturity of such investments is
made to coincide as nearly as practicable with the expected use of the funds.
Internal Control
An independent audit of investments made and held will be performed as part of the annual audit of the
City of Owasso at the close of each fiscal year.
Performance Standards
The investment portfolio will be designed to obtain a market average rate of return during budgetary
and economic cycles, taking into account the City of Owasso and its Trust Authorities investment risk
constraints and cash flow needs.
Investment Policy Adoption
The Investment Policy shall be adopted by resolution of the City Council and the Trust Authorities. The
City Treasurer shall review the Investment Policy on an annual basis and any modifications made thereto
must be approved by the City Council and Trust Authorities.
OWASSO PUBLIC GOLF AUTHORITY
OWASSO, OKLAHOMA
RESOLUTION NO.2009-02
A RESOLUTION OF THE OWASSO PUBLIC GOLF AUTHORITY, CITY
OF OWASSO, TULSA COUNTY, OKLAHOMA ADOPTING AN
INVESTMENT POLICY FOR THE OWASSO PUBLIC GOLF
AUTHORITY AND AUTHORIZING INVESTMENTS.
WHEREAS, the Oklahoma Statutes, 62 OS 2000 Supp., Sect., 348.1 provides that the
lawful treasurer of any city or town, when authorized by the appropriate governing body by
resolution, shall invest any monies in the custody of the treasurer as limited by law, provided
further that said monies cannot then be used for the purpose for which they are to be expended;
and,
WHEREAS, the Owasso Public Golf Authority (OPGA) recognizes the necessity of
establishing an investment policy to properly transact its investment activities; and,
WHEREAS, the OPGA also recognizes the necessity of improving its procedures for
investing available funds to earn additional revenue.
NOW, THEREFORE, BE IT RESOLVED BY THE OWASSO PUBLIC GOLF
AUTHORITY OF THE CITY OF OWASSO, OKLAHOMA, that, to -wit:
A. The City of Owasso Investment Policy originally issued July 2009 is hereby adopted
and applies to all funds of the City of Owasso.
B. The City Treasurer shall be and is hereby given blanket authority and directed to
invest and reinvest available funds on a continuing basis; provided that the income
received from said investments may be placed in the general fund of the
governmental subdivision to be used for general governmental operations, or the fund
from which the investment was made.
C. The City Treasurer shall keep records of all investments, showing the amount
invested from each fund by type of investment and distribution of interest earned by
each fund.
DATED this 21" day of July, 2009.
Stephen Cataudella, Chairman
ATTEST:
Sherry Bishop, Authority Secretary
APPROVED AS TO FORM:
Julie Lombardi, City Attorney