It
is the purpose of this statement to set forth the public policies of the city
relating to the investment of public moneys, and establish procedural
requirements as to investment management practice. The objective of the
investment policy and program of the city shall be as follows:
(a) The safeguarding of all public moneys shall
be of the highest priority. Public money shall not be invested or managed in
any matter which would jeopardize the safety of the principal.
(b) Consistent with the requirement of safety,
the objective of the investment program shall be to aggressively manage and
invest all public moneys to maximize net earnings, consistent with the public
responsibility to secure maximum, safe investment return possible from moneys
assigned to its stewardship, to relieve demands on the property tax and to
otherwise reduce the cost of public services.
(Code 2025)
(a) The governing body shall designate the banks,
savings and loan associations and savings banks which shall serve as
depositories of its funds. The clerk, treasurer or other city officer or
employee having the custody of city funds shall deposit such funds only at the
designated banks, savings and loan associations and savings banks. Only banks,
savings and loan associations and savings banks that have main or branch
offices in Reno County shall be designated as official depositories. No such
bank, savings bank or savings and loan association shall be designated as a
depository until the city is assured that it can obtain satisfactory security
for its deposits.
(b) The clerk, treasurer or other city officer or
employee depositing public funds shall deposit all such public funds coming
into such person’s possession in their name and official title as such officer.
If the governing body fails to designate an official depository or
depositories, the officer thereof having custody of city funds shall deposit
such funds with one or more banks, savings and loan associations or savings
banks which have main or branch offices in Reno County if satisfactory security
can be obtained therefor and if not then elsewhere. In such event, the officer
or employee shall serve notice in writing on the governing body showing the
names and locations of such banks, savings and loan associations and savings
banks where such funds are deposited, and upon so doing the officer or employee
having custody of such funds shall not be liable for the loss of any portion
thereof except for official misconduct or for the misappropriation of such
funds by the officer or employee.
(c) If eligible banks, savings and loan
associations or savings banks under subsections (a) or (b) cannot or will not
provide an acceptable bid, which shall include services, for the depositing of
public funds under this section, then banks, savings and loan associations or
savings banks which have main or branch offices in any immediately adjoining
county may receive deposits of the city’s active funds, if such banks, savings
and loan associations or savings banks have been designated as official
depositories under subsection (a) and the city can obtain satisfactory security
therefor.
(K.S.A. 9-1401; Code
2025)
As
used in this article the following words and phrases shall mean:
(a) Bank means any bank incorporated under
the laws of the state of Kansas or any other state, or organized under the laws
of the United States and which has a main or branch office in Kansas;
(b) Savings and loan association means any
savings and loan association incorporated under the laws of the state of Kansas
or any other state, or organized under the laws of the United States and which
has a main or branch office in Kansas;
(c) Savings bank means any savings bank
organized under the laws of the United States and which has a main or branch
office in Kansas;
(d) Main office means the place of
business specified in the articles of association, certificate of authority or
similar document, where the business of the institution is carried on and which
is not a branch;
(e) Branch means any office within this
state, other than the main office, that is approved as a branch by a federal or
state supervisory agency, at which deposits are received, checks paid or money
lent. Branch does not include an automated teller machine, remote service unit
or similar device or a loan production office;
(f) Investment rate means a rate which is
the equivalent yield for United States government securities having a maturity
date as published in the Wall Street Journal, nearest the maturity date for
equivalent maturities. The 0-90 day rate shall be computed on the average
effective federal funds rate as published by the federal reserve system for the
previous week.
(K.S.A. 12-1675a; Code
2025)
Temporarily
idle moneys of the city not currently needed, may in accordance with the
procedure hereinafter described be invested:
(a) In temporary notes or no-fund warrants issued
by such investing governmental unit;
(b) In savings deposits, demand deposits, time
deposits, open accounts, certificates of deposit or time certificates of
deposit with maturities of not more than two years:
(1) In banks, savings and loan associations and
savings banks, that have main or branch offices located in such investing
governmental unit; or
(2) If no main or branch office of a bank,
savings and loan association or savings bank is located in such investing
governmental unit, then in banks, savings and loan associations and savings
banks, that have main or branch offices in the county or counties in which all
or part of such investing governmental unit is located;
(3) In selecting a bank, savings and loan
association or savings bank pursuant to subparagraphs (1) and (2), the
investing governmental unit may accept any rate agreed upon by the governmental
unit and the eligible bank, savings and loan association or savings bank. If a
bank, savings and loan association or savings bank eligible for an investment
deposit pursuant to subparagraphs (1) and (2) will make such deposits available
to the investing governmental unit at interest rates equal to or greater than
the investment rate, as defined in K.S.A. 12-1675a(g), and amendments thereto,
the investing governmental unit shall select one or more of such eligible
banks, savings and loan associations or savings banks;
(c) In repurchase agreements with:
(1) Banks, savings and loan associations and
savings banks, that have main or branch offices located in such investing
governmental unit, for direct obligations of, or obligations that are insured
as to principal and interest by, the United States government or any agency
thereof; or
(2) If (A) no main or branch office of a bank,
savings and loan association or savings bank, is located in such investing
governmental unit; or (B) no such bank, savings and loan association or savings
bank having a main or branch office located in such investing governmental unit
is willing to enter into such an agreement with the investing governmental unit
at an interest rate equal to or greater than the investment rate, as defined in
K.S.A. 12-1675a(g), and amendments thereto, then such repurchase agreements may
be entered into with banks, savings and loan associations or savings banks that
have main or branch offices in the county or counties in which all or part of
such investing governmental unit is located; or
(3) If no bank, savings and loan association or
savings bank, having a main or branch office in such county or counties is
willing to enter into such an agreement with the investing governmental unit at
an interest rate equal to or greater than the investment rate, as defined in
K.S.A. 12-1675a(g), and amendments thereto, then such repurchase agreements may
be entered into with banks, savings and loan associations or savings banks
located within the State of Kansas;
(4) In selecting a bank, savings and loan
association or savings bank pursuant subparagraphs (1), (2) and (3), the
governmental unit may accept any rate agreed upon by the governmental unit and
the eligible bank, savings and loan association or savings bank;
(d) In direct obligations of or obligations that
are insured as to principal and interest by the United States or any agency
thereof, not including mortgage-backed securities with maturities as the
governing body shall determine, but not exceeding two years. Such investment
transactions shall only be conducted with: (1) Banks, savings and loan
associations and savings banks; (2) the federal reserve bank of Kansas City,
Missouri; or (3) primary government securities dealers that report to the
market report division of the federal reserve bank of New York, or any
broker-dealer engaged in the business of selling government securities that is
registered in compliance with the requirements of section 15 or 15C of the
securities exchange act of 1934 and registered pursuant to K.S.A. 17-12a401,
and amendments thereto;
(e) In the municipal investment pool fund
established in K.S.A. 12-1677a, and amendments thereto;
(f) In the investments authorized and in
accordance with the conditions prescribed in K.S.A. 12-1677b, and amendments
thereto; or
(g) In multiple municipal client investment pools
managed by the trust departments of banks that have main or branch offices
located in the county or counties where such investing governmental unit is
located or with trust companies incorporated under the laws of this state that
have contracted to provide trust services under the provisions of K.S.A.
9-2107, and amendments thereto, with banks that have main or branch offices
located in the county or counties in which such investing governmental unit is
located. Public moneys invested under this paragraph shall be secured in the
same manner as provided for under K.S.A. 9-1402, and amendments thereto. Pooled
investments of public moneys made by trust departments under this paragraph
shall be subject to the same terms, conditions and limitations as are
applicable to the municipal investment pool established by K.S.A. 12-1677a, and
amendments thereto.
(h) In municipal bonds or other obligations
issued by any municipality of the state of Kansas as defined in K.S.A. 10-1101,
and amendments thereto, that are general obligations of the municipality
issuing the same.
(i) The investments authorized in subsections
(d), (e), (f), (g) or (h) of this section shall be utilized only if the banks,
savings and loan associations and savings banks eligible for investments
authorized in subsection (b)(2), cannot or will not make the investments
authorized in subsection (b)(2) available to the investing governmental unit at
interest rates equal to or greater than the investment rate, as defined in
K.S.A. 12-1675a(g), and amendments thereto.
(K.S.A. 12-1675; Code
2025)
The
city clerk shall periodically report to the governing body as to the amount of
money available for investment and the period of time such amounts will be
available for investment, and shall submit such recommendations as deemed
necessary for the efficient and safe management of city finances. The
recommendations of the city clerk shall provide for an investment program which
shall so limit the amounts invested and shall schedule the maturities of
investments so that the city will, at all times, have sufficient moneys
available on demand deposit to assure prompt payment of all city obligations.
(Code 2025)
Securities
purchased pursuant to this article shall be under the care of the city clerk
and shall be held in the custody of a state or national bank or trust company,
or shall be kept by such officers in a safety deposit box of the city in a bank
or trust company. Securities in the original or receipt form held in the
custody of a bank or trust company shall be held in the name of the city, and
their redemption, transfer, or withdrawal shall be permitted only upon the
written instruction of the city officers. Securities not held in the custody of
a bank or trust company shall be personally deposited by such officer in a
safety deposit box in the name of the city in a bank or trust company, access
to which shall be permitted only in the personal presence and under the
signature of two of the abovementioned officers.
(Code 2025)
If,
in order to maintain sufficient moneys on demand deposit in any fund as
provided in section 1-505, it becomes necessary to transfer or sell any
securities of such funds, the officers specified in section 1-506 may transfer
said securities to any other fund or funds in which there are temporarily idle
moneys, or shall sell such securities, and for such purpose they shall have
authority to make any necessary written direction, endorsement or assignment
for and on behalf of the city.
(Code 2025)
The
city clerk shall deposit the interest earned on invested idle funds to the
general fund, unless otherwise required or authorized by law.
(Code 2025)