§ 2.09. Investment of City Funds.

(1)

When in the judgment of the Chief Financial Officer, consistent with guidelines approved by the City Council, a sufficient amount of money has accumulated in the accounts or funds of the City or when the City of Orlando has accumulated monies by reason of the sale of its own securities, the Chief Financial Officer may invest the same, at prevailing market yields on behalf of and in the name of the City of Orlando, only through the purchase of one or more of the following securities or investment instruments, or any other securities or investment instruments authorized in the City's Investment Policy adopted by City Council (as may be amended from time to time by adoption or other action of City Council); provided, any security or investment instrument purchased must meet the maturity, duration, credit and exposure criteria set forth in the City's Investment Policy:

(a)

Debt obligations issued by the United States Government, or one of its agencies, for which the payment of interest and the repayment of principal are backed by the full faith and credit of the United States.

(b)

Debt obligations issued and guaranteed by a federally sponsored entity which is backed by, or is permitted to borrow from, the Treasury of the United States.

(c)

Corporate debt obligations of domestic or foreign corporations, or foreign sovereignties, including, but not limited to, corporate notes and bonds, medium-term notes, Euro-dollar notes and bonds, Yankee notes and bonds, bankers acceptances and commercial paper.

(d)

Mortgage-backed and Asset-backed securities issued by a federal agency or instrumentality or by a private corporation.

(e)

Bank certificates of deposit in accordance with the provisions of Florida Statutes ch. 280, as amended from time to time.

(f)

Repurchase Agreements with eligible parties to be fully collateralized in accordance with the terms of a master repurchase agreement.

(g)

Taxable or Tax-exempt government debt obligations issued by any one of the United States, a commonwealth or territory of the United States, or any county, municipality, taxing district or political subdivision thereof.

(h)

Money Market Funds, structured as a mutual or trust fund, which provide daily liquidity of funds.

(i)

Fixed-Income Mutual Funds which may provide liquidity of funds less frequently than daily.

(j)

Specialty investment funds or pools with specifically identifiable risk exposure. Such funds or pools may be accessed through and/or managed by a qualified third-party.

(k)

Derivatives, the value of which depends on, or is derived from, one or more underlying assets, indices or asset values related to securities or investment instruments authorized by the City's Investment Policy.

(2)

Notwithstanding the above, the Chief Financial Officer is authorized to contract with External Investment Management firms to professionally invest and manage portions of the City's investable assets. In those instances where investment guidelines, by the nature of the investment product provided by External Managers, will differ from those contained herein or in the City's Investment Policy, the investment guidelines governing the management of those assets by the External Investment Manager must first be approved by the Finance Committee and City Council.

(3)

The Chief Financial Officer, and any other member of the City staff designated by the Chief Financial Officer, consistent with guidelines set forth in the City's Investment Policy as approved by the City Council, are authorized to (a) execute trades and maintain positions with respect to authorized securities or investment instruments in a manner consistent with the methods of settlement or authorized transactions contained in the City's Investment Policy and (b) pay the cost thereof from or deposit the proceeds therefrom into the proper accounts or funds of the City.

(4)

The Chief Financial Officer, and any other member of the City staff designated by the Chief Financial Officer, consistent with the guidelines set forth in the City's Investment Policy as approved by the City Council, are authorized to execute reverse repurchase agreement transactions for the purpose of providing liquidity to the City's investment portfolio.

(5)

The Chief Financial Officer shall develop, and present to the City Council for approval and adoption, an investment policy addressing, at a minimum: investment objectives; performance measurements; prudence and ethical standards; other authorized securities and investment instruments (in addition to those enumerated herein); maturity and liquidity requirements; portfolio composition; risk and diversification; authorized institutions and dealers; third-party custodial agreements, including delivery vs. payment constraints; master repurchase agreements; bid requirements; internal controls; and reporting procedures.

(6)

Nothing herein contained shall be interpreted or construed to abrogate any specific provision contained in any bond ordinance of the City relating to the investment of bond proceeds temporarily available in specific funds or accounts. Furthermore, nothing herein contained shall necessarily be applicable to pension funds, trust funds, deferred compensation funds or any other funds the use of which is restricted by debt covenant, applicable legal or regulatory constraint, or prior contract; nor shall the provisions herein be interpreted or construed to abrogate any specific provision of any document related to such pension funds, trust funds, deferred compensation funds, debt covenant, legal or regulatory constraint or prior contract.

(Ord. of 7-27-1960, § 1; Ord. of 12-29-1980, § 1; Ord. of 2-7-1983, Doc. #17524; Ord. of 10-26-1987, Doc. #21617; Ord. of 7-11-1994, Doc. #27691; Ord. of 9-25-1995, Doc. #28810; Ord. of 10-25-1999, § 2, Doc. #32410)