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HomeMy WebLinkAboutPR - 29 reimbursement 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 POLICY RESOLUTION NO. 29 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH DECLARING POLICY REGARDING REIMBURSEMENT OF EXPENSES FOR ELECTED AND/OR APPOINTED CITY OFFICIALS, OFFICERS, AND EMPLOYEES WHEREAS, it is necessary to determine policy regarding reimbursement of elected and/or appointed City officials, officers, and employees for expenses incurred that are directly related to conducting their respective City duties and responsibilities; and WHEREAS, it is the intent of this policy to establish and define consistent practices to expense reimbursement throughout our municipal organization; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, State of California, that those allowable expenses for which elected and/or appointed City officials, officers, and employees shall be reimbursed by the City of Ukiah shall include the following: 1. Elected and/or appointed City officials, officers, and employees shall attempt to use City vehicles whenever conducting City business locally, or when travelling to meetings, training seminars, and conferences outside of the County of Mendocino. In the event City vehicles are unavailable, and private vehicles are utilized, mileage shall be reimbursed at the rate of twenty-five cents (25¢) per mile. . The City shall normally only reimburse the cost of a single room incurred during attendance at regional or state-wide meetings, training seminars, and conferences outs!d.e of the City. City Council spouses shall be covered under this lodging provision as a reimbursable expense. . . The City shall reimburse for the lowest cost scheduled air fare feasible for air travel expenses incurred to conferences outside of the North Coast Region. If any City official decides to stay beyond the term of the conference or seminar, their expenses for that period shall not be covered by the City. A daily per diem of $45.00 shall be issued to cover expenses for meals, tips and other related miscellaneous expenses. For less than full day attendance, the reimbursement for meal expenses will be $10 for breakfast, $15 for lunch, and $20 for dinner. . Parking rental fees shall be considered an allowable reimbursable expense beyond the daily per diem. . City Councilmembers and appointed officials shall be reimbursed for the cost of attendance at local community events directly related to their role as elected or appointed City officials. . . The City shall cover the cost of specialized publication subscriptions directly related to the duties and responsibilities of elected or appointed City officials. The City shall reimburse travelling, tuition, and book expense incurred by employees for college or special courses directly related to their present career with the City. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 9. Non-reimbursable expenses shall include but not be limited to the following: a. Any and all associated expenses incurred in attending partisan political functions, meetings, or conferences. b. Any and all associated expenses incurred in attending functions, meetings, or conferences sponsored by Political Action Groups (PACS). c. Any and all associated expenses incurred in attending religious functions, events, meetings, or conferences. d. Spousal expenses incurred by City Councilmembers or City appointed officials for local community events or functions they would have ordinarily attended as private citizens irrespective of their official role. e. Expenses incurred by City Councilmembers or City appointed officials for local community events or functions they would have ordinarily attended as private citizens irrespective of their official role. f. Training, tuition, and book expenses incurred by employees for college or special course unrelated to their present career with the City. 10. The City Manager shall be authorized to review and approve any and all requests for expense reimbursement. Furthermore, the City Council delegates to the City Manager the necessary authority to determine whether expense requests not anticipated or delineated in this Policy Resolution are reimbursable by the City. PASSED AND ADOPTED this 7th day of August, 1996, by the following role call vote: AYES: Councilmembers Mastin, Malone, Shoemaker, and Mayor Schneiter. NOES: None. ABSENT: Councilmember Wattenburger. ABSTAIN: None. 'ATTEST: M~rg~e G~ntoli, ~ity Clerk 4:RES/Perdiem. Pol Fi~ed SCnni~iter, Mayor CITY OF UKIAH STATEMENT OF INVESTMENT POLICY June, 1997 I. PURPOSE The purpose of this document is to establish and organize investment policies which will govern the investment activities of the City of Ukiah. II. SCOPE This investment policy covers all the City's surplus funds and investments (except retirement funds) and invest~nent activities under the direction of the City. Investment of bond proceeds will be further restricted by the provisions of relevant bond documents. The inveshnent policies of the City of Ukiah are based on state law and prudent ~noney management practices. All funds will be invested in accordance with this Invest~nent Policy and applicable California Government Codes, including sections 53601 and 53635, et seq. Iii. OBJECTIVES Thc primary objectives of the City, in order of priority, shall be: 1) Safely: Safety of principal is the foremost objective of the investment prograln. Investments of the City shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio. 2) Liquidity: The invest~nent portfolio of the City will re~nain sufficiently liquid to enable the City to meet its cash flow require~nents. 3) Yield: The investment strategy of the City shall be to earn a reasonable investment return, considering current ~narket conditions, and within the parmneters set forth by priorities (1) and (2) above. An adequate percentage of the portfolio shall be maintained in liquid, short-term securities which can be converted into cash if necessary to meet forecasted disbursement requirements. The portfolio shall also be appropriately diversified to'aVoid unreasonable and avoidable risks regarding specific security types or individual financial institutions. IV. POLICIES Public Funds: It is the policy of the City of Ukiah to invest public funds in a manner which will provide the maxiinum safety and liquidity, while earning an investinent return consistent with the objectives and parameters set forth by this policy. , Prudent Investor Rule: Ukiah operates its investments program under the Prudent Investor Rule which states, "Investments shall be made with judgment and care, under circmnstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the Inanage~nent 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." , . Management Responsibilities: Management responsibility for the investment program is delegated, for a one-year period, subject to annual review and delegation, to the City Treasurer. The City Treasurer may further delegate day-to-day inanagement of the investment program to a professional external investment advisor. Internal Controls: A system of internal controls shall be established and docmnented in writing by the Finance Director. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation of third parties, unanticipated changes in financial tnarkets, or imprudent actions by employees and officers of the City of Ukiah. Controls deemed most important include: minimization of opportunities for collusion, separation of duties, separation of transaction authority fi'om accounting and rccordkeeping, avoidance of bearer-form securities, specific li~nitations regarding securities losses and remedial actions, written confirmation of all transactions, nfinimizing the nmnber of authorized investment officials, documentation of transactions and strategies, and proper review and approval of brokerage accounts and investment transactions. , o Safekeeping, Custody, and Delivery: The City's investments shall be held in safekeeping, in the name of the City of Ukiah, by a third party custodian. Investment transactions shall be executed and settled using the "delivery vs. payment" method. Reporting: The City Treasurer shall present to the Investment Oversight Committee and City Council monthly invest~nent reports. Required elements of the report will include type of investment, issuer, purchase and maturity dates, rating, purchase price, par, current market value as of the date of the report and the source of this valuation, and yield to maturity. These reports shall include a list of all transactions during the past ~nonth. ' : On a quarterly basis, within 30 days following the end of the quarter, the City Treasurer will deliver to the City Manager, Investment Oversight Committee and City Council an investment report which will provide data si~nilar to the monthly report; this report will include (i) a statement that the portfolio is in compliance with the policy or the manner in which the portfolio is not in compliance and (ii) a statement denoting the ability of thc City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available. Deviations from expectations shall be reported in a timely manner and shall include recommendations for appropriate action to control adverse developments. The Oversight Committee will meet at least every six months in order to conduct a comprehensive review of the invemnent activities of the City so as to insure that regulations are being adhered to and that strategies are being followed. , Conflict of Interest: In accordance with California Government Code sections 1090, et seq. and 87100, et seq., officers and employees of the City will refrain from any activity that could conflict with the proper execution of the invest~nent program or which could impair their ability to make impartial investment decisions. All investment personnel shall comply with the reporting requirements of the Political Reform Act, to include the annual filing of State~nents of Econo~nic Interest. o Return On Investment: The City's investment portfolio shall be designed to attain a market-average rate of return through economic cycles. The Investment Oversight Co~nmittee will measure the portfolio against an appropriate benchmark. , Annual Review of Policy: The Treasurer shall annually render to the City Council and the Invest~nent Oversight Committee a State~nent of Investment Policy, which shall be considered at a public meeting. Any changes in the policy shall also be considered by the City Council at a public meeting. V. AUTHORIZED INVESTMENTS Generally, investments shall be made in the context of the "prudent investor rule." The City is further governed by applicable California Government Codes, including sections 53600, 53601 and 53635, et seq. Within the context of these regulations, the following invest~nents are authorized, and further limited herein: (a) Ukiah Bonds: Bonds issued by the City of Ukiah, including bonds payable solely out of the revenues frown a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City. (b) U.S. Treasuries: United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for payment of principal and interest. (c) California State Obligations: Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues fi'om a revenue-producing (d) (e) (f) (g) (h) (i) property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. Local Agency Obligations: Bonds, notes, warrants, or other certificates of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. U.S. Agency Obligations: Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Holne Loan Bank Board, the Tennessee Valley Authority, or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or in guaranteed portions of Small Business Administration notes; or in obligations, participations, or other instruments of, or issued by, a federal agency or a United States government-sponsored enterprise. Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by a cmn~nerciai bank, otherwise known as bankers acceptances. Purchases of bankers acceptances may not exceed 270 days maturity or 40% of the portfolio. Commercial Paper: Commercial paper ranked "PI" by Moody's Investor Services or "Al" by Standard and Poor's, and issued by domestic corporations having assets in excess of $500,000,000 and having an "A" or higher rating on its long term debt as provided for by Moody's or Standard and Poor's. Purchases of eligible commercial paper may not exceed 180 clays to maturity nor represent more than 10% of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 15% of the portfolio. An additional 15%, or a total of 30% of the portfolio may be invested in commercial paper if the dollar weighted average maturity of the amount invested in commercial paper does not exceed 31 days. Negotiable Certificates: Negotiable certificates of deposit issued by a nationally or state-chartered bank or a state or federal savings institution, or a state-licensed branch of a foreign bank ("Yankee CD"). Purchases of negotiable certificates of deposit may not exceed 30% of the portfolio. Repurchase Agreements: The City may invest in repurchase agreements with banks and dealers with which the City has entered into a master repurchase agreement. The maturity of repurchase agreeinents shall not exceed 365 days. The market value of securities used as collateral for repurchase agreements shall be valued at 102% or greater of the funds borrowed against those securities at all tilnes and shall be monitored daily by the investment staff. 'In order to conform with provisions of the Federal Bankruptcy Code, which provide for the liquidation of securities held as collateral for repurchase agremnents, the only securities acceptable as collateral shall be (J) (l) direct obligations of the United States or any agency of the United States as described in (b) and (e). In addition, the City may enter into repurchase agreements only with "primary dealers" as designated by the Federal Reserve Bank of New York. All securities underlying Repurchase Agreements must be delivered to the City's custodian bank (delivery vs. payment) or be handled under a properly executed "tri-party" repurchase agreement. The market value must be recalculated each time there is a substitution of collateral. The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to Repurchase Agreement. Reverse Repurchase Agreements: The City may invest in reverse repurchase agreements only with "pri~nary dealers" with which the City has entered into a master repurchase agreetnent contract. The City may invest in reverse repurchase agreements with the following conditions: Reverse repurchase agree~nents may be used only after prior approval of the City Council. The City may only use reverse repurchase agreements to (1) cover a temporary cash shortage, or (2) augment earnings. Reverse repos may not be used to leverage the portfolio. In addition: If a reverse repurchase agreement is authorized, it may be utilized only if the security to be sold on a reverse repurchase agreement has been owned and fully paid for by the City for a minimmn of 30 days prior to the sale; the total of all reverse repurchase agrcemenls on investments owned by the City does not exceed 20% of the portfolio; and the agree~nent does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimmn earning or spread for the entire period between the sale of the security using a reverse repurchase agreement and the final maturity date of the stone security. The proceeds of the reverse repurchase agreement may not be invested in securities whose maturity exceeds the term of the reverse repurchase agree~nent. Medium-Term Notes: The City may invest in medium-term notes issued by corporations organized and operating within the United States, or by depository institutions licensed in the United States or any state and operating within the United States. Notes eligible for investment shall be rated "A" or better by a nationally recognized rating service. Purchase of medium-term notes may not exceed 30% of the portfolio. Money Market Mutual Funds: Share of:beneficial interest issued by diversified management companies investing in the securities and obligations authorized by (a) through (j) of this policy and which either: (1) shall be rated in the highest rating category of least two of the three nationally recognized rating services or (2) have an investment adviser registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations as authorized by Government Code section 53601 and ~nust have in excess of $500,000,000 in assets under ~nanagement. The purchase price shall not include commissions and shall not exceed 20% of the portfolio. (m) Local Agency Investment Fund: The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the maximum permitted under Section 16429.1 of the Government Code. Current maxi~num is $20 Jnillion. (n) Time Deposits: The City may invest in non-negotiable time deposits FDIC insured or fully collateralized in financial institutions located in California, including U.S. branches of foreign banks licensed to do business in California. All time deposits must be collateralized in accordance with the California Government Code section 53561, either at 150% by promissory notes secured by first mortgages and first trust deeds upon improved residential property in California eligible under section (tn) or at 110% by eligible marketable securities listed in subsections (a) through (1) and (n) and (o). Since lime dcposils arc not liquid, no more than 25% of the cost value of the portfolio may be invested in this category. (o) Mortgage-Backed and Asset-Backed Securities: Any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maxi~nu~n of five years ~naturity. Securities eligible for invest~nent under this subdivision shall be issued by an issuer rated in a rating catcgory of "AA" or its equivalent by a nationally recognized rating service and having an "A" or higher rating for the issuer's unsecured debt, as provided by a nationally recognized rating service. Purchase of securities authorized by this subdivision may not exceed 20% of the agency's surplus money that ]nay be invested pursuant to this section. VI. INELIGIBLE INVESTMENTS The City may only invest in those obligations authorized by this policy. The City shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages, or in any security that could result in zero interest accrual if held to maturity. However, the City ~nay hold prohibited investments until their ~naturity dates. VI. PORTFOLIO LIMITS AND DIVERSIFICATION · .' 1. Maximum Investment Maturity: Unless otherwise noted within this investment policy, the City may not invest in a security with a maturity that exceeds five years fi'om the date of purchase. Investments which exceed five years in maturity require authority granted by City Council before purchase. Written authority of the City Council must be , o granted specifically or as part of an investment program no less than three months prior to the date of purchase. Maximum Portfolio Average Maturity: The target maximum average maturity of the City's investment portfolio shall not exceed 2.5 years to control overall exposure to interest rate risk. Diversification: With the exception of obligations of the United States Government and its Agencies, no ~nore than 10% of the portfolio ~nay be invested in the securities of any single issuer.