Sarasota County Investment Policy 2018

Sarasota County Investment Policy 11 ii. Market Value In determining market value, dealers’ bid prices shall be used, as quoted daily in the Wall Street Journal, or other acceptable media, and accrued interest shall be included. g. Bidding Process All investments, except the daily open repurchase agreement with the depository bank as it relates to the overall banking agreement, will be purchased through a competitive bidding process, using the dealers and banks on the approved list. The County is under no obligation to secure competitive bids from all the dealers or banks on the approved list. Rather a decision will be made by the investment officials as to the institutions that have been the most competitive over the last few weeks, and these will be contacted for a bid. Documentation will be retained for all bids/offers, with the winning bid/offer clearly identified. If for any reason, the best bid/offer was not selected, then the reasons leading to that decision will be clearly indicated on the bidding forms. After the Director of Finance or the Treasury Management staff has determined the approximate maturity or Effective Duration, based on cash flow needs and market conditions, and has identified the optimal security type(s), a minimum of three banks or dealers must be contacted to ask for an indicative bid/offering of securities that fit the investment criteria. The competitive bidding policy may be waived for a potential purchase or sale of certain securities due to market availability (supply and demand). Under these circumstances, the Comptroller or Director of Finance must approve the transaction. In addition, securities which trade in a quoted market – are exempt from the competitive bidding process but must adhere to the documentation process. Securities that can be traded at prices better than their valuation price, as provided by an independent third party, are also exempt from competitive bidding but again, documentation confirming a purchase or sale within the quoted market must be maintained. h. Diversification of Portfolio Prudent investing necessitates that the portfolio be diversified as to instruments and dealers. To allow efficient and effective placement of proceeds from bond sales, the limit on repurchase agreements may be exceeded for a maximum of five (5) business days following the receipt of bond proceeds, on the direction of the Comptroller or Director of Finance. Money Market Funds may be used by Trustees, Paying Agents, Safekeeping Agents, etc., as a temporary investment for bond proceeds or payouts. No more than 25% of the entire portfolio may be placed with any one security dealer or bank. Written Repurchase Agreements All repurchase agreements must be in written form using the Public Securities Association (PSA) Master Repurchase Agreement as a guide.