HomeMy WebLinkAboutresolution.council.075-11 RESOLUTION # "t
(Series of 2011)
A RESOLUTION APPROVING FINANCIAL POLICIES FOR THE CITY OF
ASPEN AND AUTHORITIZNG THE CITY COUNCIL TO APPROVE SAID
DOCUMENT BEHALF OF THE CITY OF ASPEN, COLORADO.
WHEREAS, the financial policies represents the best practices of
governmental financial management and establishes guidelines for financial
planning, expenditures and revenues, and
WHEREAS,the financial policies will help ensure the city maintains a
balanced and diversified revenues, maximizes the effectiveness of its
expenditures, preserves the safety of the City's public funds and maintains a
strong position in the financial community, and
WHEREAS, the governmental Financial Officers Association (GFOA)
recommends establishment of formal financial policies to guide government
decision making, develop approach to achieve goals, develop a budget consistent
with achieving those goals, evaluate performances and make adjustments
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ASPEN, COLORADO,
That the City Council of the City of Aspen hereby adopts the attached
financial policies
INTRODUCED, READ AND ADOPTED by the City Council of the City of
Aspen on the 14 day of November 2011.
/i
/
ichael C. Ire . • ayor
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the
foregoing is a true and accurate copy of that resolution adopted by the City
Council of the City of Aspen, Colorado, at a meeting held November 14, ) 2011
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Kathryn S. Koch, City Clerk
THE CITY OF ASPEN
Financial and
Investment PoIicies
Adopted: November 14, 2011
Prepared by:
City of Aspen — Finance Department
130 South Galena Street
Aspen, Colorado 81611
970- 920 -5040
Table of Contents
Financial Policies 3
Budget Policies 4
Expenditure Policies 10
Revenue Policies 15
Investment Policies 17
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THE CITY OF ASPEN
INTRODUCTION
The City of Aspen ( "City ") is a Colorado home rule municipality operating under its City Charter
( "Charter "). The City functions under the direction of a City Manager (Manager') who is appointed by
a Mayor and four - member City Council ( "Council "). The State Constitution and the City Charter
provide the basic legal requirements and timelines for policies, while Council approves goals,
ordinances and resolutions that provide more specific direction that responds to the needs of the City.
The City of Aspen Staff ( "Staff') has an important responsibility to carefully account for public funds, to
manage municipal finances wisely and to plan and provide for the adequate funding of services desired
by the public and as required by laws, rules or regulations, including the provision and maintenance of
public facilities and improvements. The financial goals and policies set forth in this document are
intended to establish guidelines for the continued financial strength and stability of the City.
FINANCIAL GOALS
Financial goals are broad, timeless statements of the financial management the City seeks to maintain.
A fiscal policy that is adopted, adhered to and regularly reviewed is recognized as the cornerstone of
sound financial management. The financial goals for the City of Aspen are:
• To promote cooperation and coordination within the City in the delivery of services.
• To provide full value for each tax dollar by delivering quality services efficiently and on a cost -
effective basis.
• To preserve quality of life by providing and maintaining adequate financial resources and
capital assets necessary to sustain the desired level of municipal services and meet long -term
needs.
• To respond to changes in the economy, the priorities of governmental and non - governmental
organizations and other changes that may affect financial well- being.
• To minimize financial risk in providing services and maintain a strong credit rating in the
financial community.
• To annually prepare a budget, submit it to Council for approval and publicly issue a budget
document.
• To identify costs and funding sources before recommending approval of capital and operating
budgets.
• To view the budget as a dynamic rather than static plan requiring periodic adjustments as
circumstances change.
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FINANCIAL REPORTING AND AUDITING
The City will establish and maintain a high standard of accounting practices. Accounting standards will
conform to Generally Accepted Accounting Principles ( "GAAP ") as outlined by the Governmental
Accounting Standards Board ( "GASB "). Accounting standards will reflect Best Practices recommended
by the Government Finance Officers Association ( "GFOA ").
After each fiscal year, a certified public accounting firm will conduct an audit of the City records. The
report will include a financial opinion and a management and compliance report on internal controls.
Annually, a comprehensive annual financial report will be prepared for the City. This report shall be
made available to Council, Staff, bond - rating agencies and the general public.
The City will complete periodic reports as needed and requested by the City Manager and Council,
which may include monthly revenue and expenditure reports, quarterly forecast reports, sales tax
reports and an annual budget report.
Multi -year capital improvement projects shall be reported on a multi -year basis, comparing original
budgets, amendments to the budget and all costs over the life of the project. In the case of housing
projects, the original anticipated subsidy and changes to the subsidy over the life of the project shall
also be tracked and reported.
BUDGET OVERVIEW
The preparation and adoption of the annual budget is an important exercise for the entire
organization. Sound financial practice and the desire to maintain a strong credit rating dictate that the
budgets be balanced, constantly monitored and responsive to changes. The process encompasses an
extended period of planning, review, forecasting and priority setting. The City's annual budget is a
comprehensive fiscal plan which spells out how services will be provided and community
improvements will be achieved. Upon its adoption by Council, it becomes a controlling mechanism by
which to measure the resources receipted and expenditures made to meet approved objectives.
The annual budget is a plan which provides the Council and City Manager with the financial
information necessary for the allocation of resources to accomplish the goals and objectives of the
City. The provision of municipal services is accomplished through the budget. The budget, along with
the annual appropriation ordinances, provides the basis for the control of expenditures and sets the
financial guidelines for the City. The basic legal requirements and budget process are defined by the
State Constitution and the City Charter. Council approves the budget objectives.
BUDGET PHILOSOPHY
The City is committed to developing a sound financial plan. The City provides a wide variety of services
to the residents of the community, and it is the responsibility of Council to adopt a budget and manage
the available resources to best meet the service needs for the overall good of the community. To
achieve this, the City:
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• Utilizes conservative growth and revenue forecasts;
• Prepares multi -year plans for operations and capital improvements;
• Establishes budgets for all Funds based on Council approved budget assumptions;
• Appropriates the budget in accordance with the City Charter and State Constitution; and
• Develops a budget that provides service levels which reflect the needs of the community.
The City manages a bottom line budget. Funds and Departments are required to allocate resources
and manage operations to achieve their core mission within the funding level provided. Changes in
service level requirements mandated by law, directed by Council or influenced by other factors
(changes in technology, annexations, reorganizations of Departments, etc.) provide a basis for changes
in base level funding. Increases in funding are requested as supplemental or new program
appropriation requests. If a Fund or Department experiences a decrease in needs, resources can be
reallocated within the City as needed.
BALANCED BUDGET
FiscaI Year
The fiscal year of the City shall begin on the first day of January and end on the last day of December.
Submission of Budget and Budget Message
The City Manager, prior to the beginning of each fiscal year, shall submit to Council the budget for said
ensuing fiscal year and an accompanying message.
The City Manager's message shall explain the budget both in fiscal terms and in terms of the work
programs. It shall outline the proposed Financial Policies of the City for the ensuing fiscal year,
describe the important features of the budget, indicate any major changes from the current year in
Financial Policies, expenditures and revenues, together with the reasons for such changes, summarize
the City's debt position and include such other material as the City Manager deems desirable or which
the Council may require.
Budget Content
The budget shall provide a complete financial plan of all Funds for the ensuing fiscal year and, except
as required by law or the Charter, shall be in such form as the City Manager deems desirable or Council
may require. In organizing the budget, the City Manager shall utilize the most feasible combination of
expenditure classification by Fund, Department, Program and Object. It shall begin with a clear general
summary of its contents and shall be so arranged as to show comparative figures for actual and
estimated revenue and expenditures of the preceding fiscal year. It shall indicate in separate sections:
• Anticipated revenues classified as amounts to be received from taxes and fees and
miscellaneous revenues;
• Proposed expenditures for current operations during the ensuing fiscal year, detailed by
Departments and Funds in terms of their respective programs and the method of financing such
expenditures;
• Required expenditures for debt service, judgments and statutory expenditures;
• Proposed capital expenditures during the ensuing fiscal year, detailed by Departments and
Funds when practicable and the proposed method of financing each such capital expenditure;
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• Anticipated beginning and ending balances or deficit for the ensuing fiscal year for all Funds.
The total of proposed expenditures and provision for contingencies shall not exceed the total of
estimated revenue and use of fund balance consistent with provisions of this Financial Policy unless
necessitated by emergency situations.
Long Range Plans
Staff will provide Long Range Plans ( "LRP's ") which forecast the fiscal condition of every major City
Fund over a ten year horizon. These plans are to be used to analyze the long term financial impact of
changes in revenue streams, funding levels, programmed services and capital improvements during the
current fiscal year. Years two through ten are for planning purposes only.
LRP's are used as financial models throughout the year to assess financial impacts as policy issues arise
and are relied upon for estimating the fiscal impact of budgetary changes.
Asset Management Plan
An Asset Management Plan ( "AMP ") will be developed for a period of ten (10) years. The AMP will be
reviewed and updated annually. Years two through ten are for planning purposes only.
The City's AMP includes the purchase, renovation or upgrade of new and existing municipal facilities,
properties and equipment. The AMP is funded from multiple sources depending on the type of project
and the use of the asset.
To be considered in the AMP, a project must have an estimated cost of at least $10,000. Certain assets
below that cost may be included for informational and planning purposes at Council's discretion. Staff
will identify the estimated costs and potential funding sources for each capital project prior to inclusion
in the AMP. The operating costs to maintain capital projects shall be considered prior to undertaking
the capital projects. The impacts of capital assets are budgeted for in the operating budgets.
Budget Adoption
Budget Hearing
The City of Aspen's budget is adopted at a public hearing by resolution. The public hearing will be held
at least fifteen (15) days prior to the County's deadline of December 15th for the certification of the
tax levy. Public notice is published seven (7) days prior to the hearing. See Section 9.6 of the Charter.
Council Amendments
After the public hearing, Council may adopt the budget with or without amendment. In amending the
budget, it may add or increase programs or amounts and may delete or decrease any programs or
amounts, except expenditures required by law or for debt service or for estimated cash deficit.
Council Adoption
The Council shall adopt the budget by resolution on or before the final day established by law for the
certification of the ensuing year's tax levy to the county. If it fails to adopt the budget by this date, the
amounts appropriated for the current operation for the current fiscal year shall be deemed adopted
for the ensuing fiscal year on a month -to -month basis, with all items in it pro -rated accordingly, until
such time as Council adopts the budget for the ensuing fiscal year.
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Property Tax Levy
The City of Aspen's mil levy is adopted at a public hearing by resolution. The property tax mil levy
establishes the amount of property tax that will be collected in the ensuing year. The City's general
property tax (not including the Stormwater Fund mil levy or other levies created by referendum) is the
only revenue source subject to the Tax Payers Bill of Rights "TABOR. In 1992, the voters of Colorado
amended Article X of the Colorado Constitution to the effect that any tax increase resulting in the
increase of governmental revenues at a rate faster than the combined rate of inflation and growth in
property would be subjected to a popular vote in a referendum.
Public notice of the mil levy hearing is published at least seven (7) days prior to the hearing. The
County's deadline for the certification of the tax levy is December 15` See Section 9.9 of the Charter.
Public Records
Copies of the budget and the included capital program as adopted shall be public records and made
available to the public in the municipal building and on the City's website at www.aspenpitkin.com.
Amendments after Adoption
Supplemental Appropriations
If during the fiscal year the City Manager certifies that there is funding available for appropriation, the
Council by ordinance may make supplemental appropriations for the year. If additional appropriations
are requested of council prior to a supplemental ordinance, Council may approve the expenditure and
authorize spending prior to the ordinance. The Clerk's Department will provide to the Finance
Department the memo presented to Council with the affirmative action by council with decision
summary and stated dollar amount.
Emergency Appropriations
To meet a public emergency affecting life, health, property or the public peace, Council may make
emergency appropriations. Such appropriations may be made by emergency ordinance in accordance
with provisions of Section 4.11 of the Charter.
Reduction of Appropriations
If at any time during the fiscal year it appears probable to the City Manager that the funds available
will be insufficient to meet the amount appropriated, the Manager shall report to Council indicating
the estimated amount of the deficit, any remedial action taken by him and his recommendation as to
any other steps to be taken. The Council shall then take such further action as it deems necessary to
prevent or minimize any deficit and for that purpose it may by ordinance reduce one or more
appropriations.
Transfer of Appropriations
Any time during the fiscal year the City Manager may transfer part or all of any unencumbered
appropriation balance among programs within a Department or Fund. Transferring appropriation
balance between Funds requires Council approval. The City Manager may give authority to Staff to
authorize the transfer of unencumbered appropriations between line items within a Department or
Fund. Unencumbered appropriations may be transferred from all line items without approval from the
Finance Director except payroll. In order to transfer unencumbered appropriations dedicated to
payroll, approval must be obtained from the Finance Director.
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Capital project appropriations may not be moved from one project to another. Any appropriation
balance within a project may not be used for any other purpose unless the City Manager gives
authority to Staff to change the scope of the project or to move that budget authority to another
expenditure account.
Limitation
No appropriation for debt service may be reduced or transferred and no appropriation may be reduced
below any amount required by law to be appropriated or by more than the amount of the
unencumbered balance thereof. The supplemental and emergency appropriation and reduction or
transfer of appropriations authorized by this section may be made effective immediately upon
adoption.
Administration of Budget
As required by Section 9.13 (c) of the Charter, a monthly budget report will be created to provide a
snapshot of the City's budgetary and investment status for the current year. This report is intended as
a policy -level document for overall review of the City's fiscal condition and how that condition relates
to major budget issues. This report will be submitted to Council for review. In addition, it is intended
for the use of City Staff with budget management responsibilities. This report will show the status of
the revenue and expenditure compared to the current year's budget authority.
Independent Audit
An independent audit shall be made of all City accounts at least annually and more frequently if
deemed necessary by Council. Such audit shall be made by certified public accountants, experienced in
municipal accounting, selected by City Manager. Copies of such audit shall be made available for
public inspection at the municipal building and on the City's website at www.aspenpitkin.com.
ASSETS
Capital Assets and Capitalization Threshold
The City qualifies a capital asset as having a cost of $5,000 or more, a useful life of one year or more
and a use in operations and not for resale.
A capital asset is to be reported and depreciated in government -wide financial statements. In the
government -wide financial statements, assets that are not capitalized are expended in the year of
acquisition.
Infrastructure assets are long -lived capital assets that normally can be preserved for a greater number
of years than most capital assets and are normally stationary in nature. Examples include roads,
bridges, tunnels, drainage systems, water and sewer systems and dams. Infrastructure assets do not
include buildings, drives, parking lots or any other examples given above that are incidental to property
or access to the property.
The capitalization threshold is based on the cost of a single asset. Assets that do not meet the
capitalization threshold will be recorded as expenditures.
Capital assets that meet the minimum capitalization threshold will be recorded at historical cost. The
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cost of a capital asset includes capitalized interest in accordance with GAAP and ancillary charges
necessary to place the asset into its intended location and condition for use.
Classes of Assets
The City establishes the following major categories of capital assets:
• Land and Land Rights (including Water Rights)
• Land Improvements (Improvements other than Buildings)
• Buildings and Building Improvements
• Construction in Progress
• Vehicles
• Machinery and Equipment (Including Office Equipment)
• Infrastructure (Roads, Bridges, Trails, Drainage, Water, Sewer, Dams and Lighting Systems)
Capital Asset Costs
The City establishes the following as capital asset costs:
• Ancillary charges necessary to place the asset into its intended location and condition of use
• Ancillary charges include costs that are directly attributable to asset acquisition:
o Freight and transportation charges
o Installation costs
o Site preparation costs
o Professional fees (attorney, architect, surveyor, engineering and tap)
• Direct charges of staff time
When the City constructs housing projects that will be sold, Construction in Progress ("CIP") costs
should be recorded in Fund 810 as "Assets Held for Resale." However to maintain consistency, the City
will record these projects as CIP and then delete the CIP to offset sales proceeds when the units are
sold. Each project should be analyzed to determine if City infrastructure is being constructed as part of
the project.
Depreciation
In order to be depreciated, an asset must be classified as a capital asset. Capital Assets (excluding land)
are depreciated using the straight -line method over the following estimated useful lives:
• Buildings 25 -50 years
Infrastructure and Improvements other than Buildings 10 — 65 years
Machinery and Equipment 3 —49 years
Asset lnventory
The City shall inventory all capital assets. An inventory of all assets is maintained in a database by the
Finance Department. The inventory record will identify the responsible Department or Fund, in
addition to description, year of acquisition, method of acquisition, funding source, cost or estimated
cost, and estimated useful life.
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The City shall assess the condition of all major capital assets. This information will be used to plan
for the ongoing financial commitments required for major repairs or replacement to be funded.
Operation and Maintenance
Capital assets shall be maintained in working condition and properly safeguarded. These assets will be
maintained at a level that protects capital investment and minimizes future maintenance and
replacement costs. Budgets should provide sufficient funding for operations, maintenance,
replacement and enhancements of capital assets.
A high priority will be placed on maintenance where deferral results in greater costs to restore or
replace. Maintenance of existing capital assets should be given priority over acquisition of new assets
unless the available funding cannot be used for maintenance of existing capital assets. The City will
avoid deferral of scheduled capital maintenance to achieve a balanced budget.
INVESTMENT POLICY
Please see separate Investment Policy document attached as Exhibit A.
OVERVIEW
Expenditures are a rough measure of a local government's service output. While many expenditures
can be easily controlled, emergencies, unfunded mandates and unanticipated service demands may
strain the City's ability to maintain a balanced budget. The City is committed to ensure the proper
control of expenditures and provide for a quick and effective response to adverse financial situations.
PAYMENTS AND OBLIGATIONS PROHIBITED
No payments shall be made or obligation incurred against any allotment or appropriation except in
accordance with appropriations duly made and unless the manager first certifies that there is a
sufficient unencumbered balance in such allotment or appropriation and that sufficient funds there
from are or will be available to cover the claim or meet the obligation when it becomes due and
payable. Any authorization of payment or incurring of obligation in violation of the provisions of this
document shall be void and any payment so made illegal; such action shall be cause for removal of any
officer who knowingly authorized or made such payment or incurred such obligation, and the officer
shall also be liable to the City for any amount so paid. However, except where prohibited by law,
nothing in this document shall be construed to prevent the making or authorizing of payments or
making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds
or to prevent the making of any contract or lease providing for payments beyond the end of the fiscal
year, provided that such act was made or approved by ordinance.
DEBT MANAGEMENT POLICY
Debt is an effective way to finance capital improvements or to even out short -term revenue flows.
Properly managed debt preserves the City's credit rating, provides flexibility in current and future
operating budgets and provides the City with long -term assets that maintain or improve quality of life.
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Limitation of Indebtedness
The City shall not become indebted for any purpose or in any manner in an amount which, including
existing indebtedness, shall exceed twenty (20) percent of the assessed valuation of the taxable
property within the City, as shown by the last preceding assessment for City purposes; provided,
however, that in determining the limitation of the City's power to incur indebtedness there shall not be
included bonds issued for the acquisition or extension of a water system or public utilities; or bonds or
other obligations issued for the acquisition or extension of enterprises, works or ways from which the
City will derive a revenue in accordance with Section 10.5 of the Charter.
Forms of Borrowing
The City may borrow money and issue the following securities to evidence such borrowing:
Short -Term Notes
The City, upon the affirmative vote of the majority of the entire Council, may borrow money without
an election in anticipation of the collection of taxes or other revenues and to issue short-term notes to
evidence the amount so borrowed. Any such short -term notes shall mature before the close of the
fiscal year in which the money is borrowed.
General Obligation Bonds
No bonds or other evidence of indebtedness payable in whole or in part from the proceeds of general
property taxes or to which the full faith and credit of the City are pledged, shall be issued, except in
pursuance of an ordinance, nor until the question of their issuance shall, at a general election, be
submitted to a vote of the electors and approved by a majority of those voting on the question;
qualified electors of the City shall mean those duly qualified to vote at a general election in the City of
Aspen unless the Council for sufficient reason shall by ordinance calling the election, restrict or limit
such classification of electors to taxpaying electors as may be defined by ordinance adopted by the
Council, provided, however, that such securities issued for acquiring utilities and rights thereto, or
acquiring improving or extending any municipal utility system, or any combination of such purposes,
may be so issued without an election.
Revenue Bonds
The City may borrow money, issue bonds or otherwise extend its credit for purchasing, constructing,
condemning, otherwise acquiring, extending or improving a water, electric, gas or sewer system or
other public utility or income - producing project provided that the bonds or other obligations shall be
made payable from the net revenues derived from the operation of such system, utility or project and
providing further that any two (2) or more of such systems, utilities and projects may be combined,
operated and maintained as joint municipal systems, utilities or projects in which case such bonds or
other obligations shall be made payable out of the net revenue derived from the operation of such
joint systems, utilities or projects. Such bonds shall not be considered a debt or general obligation of
the City for the purposes of determining any debt limitation thereof.
The City shall, in addition, have the authority to issue revenue bonds payable from the revenue or
income of the system, utility or project to be constructed or installed with the proceeds of the bond
issue, or payable in whole or in part from the proceeds received by the City from the imposition of a
sales or use tax by the State of Colorado or any agency thereof.
No bond shall be issued until the question of their issuance shall, at a general election, be submitted to
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a vote of the electors and approved by a majority of those voting on the question.
Refunding Bonds
The Council may authorize, by ordinance, without an election, issuance of refunding bonds or other
like securities for the purpose of refunding and providing for the payment of the outstanding bonds or
other like securities of the City of the same nature or in advance of maturity by means of an escrow or
otherwise.
Special or Local Improvement District Bonds
The City shall have the power to create local improvement districts and to assess the cost of the
construction or installation of special or local improvements against benefited property within
designated districts in the City by:
• Order of Council, subject, however, to protest by the owners of a majority of all property
benefited and constituting the basis of assessment as the Council may determine.
• A petition by the owners of more than fifty (50) percent of the area of the proposed district
provided that such majority shall include not less than fifty (50) percent of the landowners
residing in the territory.
In either event, a public hearing shall be held at which all interested parties may appear and be heard.
Right to protest and notice of public hearing shall be given as provided by Council by ordinance. Such
improvements shall confer special benefits to the real property within said district and general benefits
to the City. The Council shall have the power by ordinance to prescribe the method of making such
improvements, of assessing the cost thereof and of issuing bonds for cost of constructing or installing
such improvements including the costs incidental thereto. Bonds shall be authorized for issuance after
approval by the registered electors in the district at a regularly scheduled election.
Where all outstanding bonds of a special or local improvement district have been paid and any monies
remain to the credit of the district, they shall be transferred to a special surplus and deficiency fund
and whenever there is a deficiency in any special or local improvement district fund to meet the
payments of outstanding bonds and interest due thereon, the deficiency shall be paid out of said
surplus and deficiency fund. Whenever a special or local improvement district has paid and cancelled
three - fourths of its bonds issued and for any reason the remaining assessments are not paid in time to
take up the remaining bonds of the district and the interest due thereon and there is not sufficient
monies in the special surplus and deficiency fund, then the City shall pay said bonds when due and the
interest due thereon and reimburse itself by collecting the unpaid assessments due from said district.
In consideration of general benefits conferred on the City from the construction or installation of
improvements in improvement districts, the Council may levy annual taxes on all taxable property
within the City at a rate not exceeding four (4) mils in any one year, to be disbursed as determined by
the Council for the purpose of paying for such benefits, for the payment of any assessment levied
against the City in connection with bonds issued for improvement districts or for the purpose of
advancing monies to maintain current payments of interest and equal annual payments of the principal
amount of bonds issued for any improvement district hereinafter created. The proceeds of such taxes
shall be placed in a special fund and shall be disbursed only for the purposes specified herein, provided
that in lieu of such tax levies, the Council may annually transfer to such special fund any available
monies of the City, but in no event shall the amount transferred in any one year exceed the amount
which would result from a tax levied in such year as herein limited.
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Long Term Installment Contracts, Rentals and Leaseholds
In order to provide necessary land, buildings, equipment and other property for governmental or
proprietary purposes, the City is hereby authorized to enter into long term installment purchase
contracts and rental or leasehold agreements. Such agreements may include an option or options to
purchase and acquire title to such property within a period not exceeding the useful life of such
property and in no case exceeding forty (40) years. Each such agreement and the terms thereof shall
be approved by an ordinance duly enacted by the City. The Council is authorized and empowered to
provide for the payment of said payments or rentals from a general levy imposed upon both personal
and real property included within the boundaries of the City, or by imposing rates, tolls and service
charges for the use of such property or any part thereof by others, or from any other available
municipal income or from any one or more of the above sources provided that nothing herein shall be
construed to eliminate the necessity of voter approval of a tax or levy if otherwise required by this
Charter. The obligation to make any payments or pay any rentals shall constitute an indebtedness of
the City within the meaning of the Charter limitation on indebtedness. Property acquired or occupied
pursuant to this Charter shall be exempt from taxation so long as used for authorized governmental or
proprietary functions of the City. See Ordinance 12 -1975.
FUND BALANCES AND OPERATING RESERVES
Adequate reserve levels are a necessary component of the City's overall financial management
strategy and a key indicator of the City's financial health. A fund balance policy is necessary to ensure
that City programs and current service levels are protected from changes in revenue growth or
expenditure requirements. The GFOA recommends the establishment of a formal policy on the level of
fund balance that should be maintained in the General Fund and encourages the adoption of similar
policies for other types of Governmental Funds.
It is the policy of the City to maintain a reserve in the General Fund of no less than twenty five (25)
percent of annual appropriated expenditures, including reoccurring transfers, at year end as identified
in the LRP.
The General Fund reserve may be drawn upon on recommendation of Staff with Council approval to
compensate for an expected shortfall. A minimum reserve of five (5) percent of annual appropriated
expenditures must remain at all times. Staff's recommendation to draw upon this reserve must include
a replenishment schedule to begin within twelve months of the draw and result in full replenishment
of the reserve requirement within thirty -six months of the draw.
It is the policy of the City to maintain a reserve in the Wheeler Opera House Fund of no less than
twenty five (25) percent of annual appropriated expenditures, including reoccurring transfers, at year
end as identified in the LRP.
The Wheeler Opera House Fund reserve may be drawn upon on recommendation of Staff with Council
approval to compensate for an expected shortfall. A minimum reserve of five (5) percent of annual
appropriated expenditures must remain at all times. Staff's recommendation to draw upon this reserve
must include a replenishment schedule to begin within twelve months of the draw and result in full
replenishment of the reserve requirement within thirty -six months of the draw.
It is the policy of the City to maintain a reserve in all other City Funds except for certain funds listed
below of no less than twelve and a half (12.5) percent of annual appropriated expenditures, including
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reoccurring transfers but excluding large capital expenditures, at year end as identified in the LRP. The
funds that are not part of this policy include: City Tourism Promotion Fund, Debt Service Fund,
Employee Health Insurance Fund and Information Technology Fund. These funds are excluded from the
policy because they are Internal Service Funds or have a policy of having a zero fund balance.
The reserve may be drawn upon on recommendation of Staff with Council approval to compensate for -
an expected shortfall. A minimum reserve of five (5) percent of annual appropriated expenditures
must remain at all times. Staff's recommendation to draw upon this reserve must include is
replenishment schedule to begin within twelve months of the draw and result in full replenishment of
the reserve requirement within thirty -six months of the draw.
GASB Statement No. 54 established fund balance classifications for governmental funds. The
Statement requires the adoption of policies surrounding those fund balance classifications.
In the fund financial statements, governmental funds report fund balance classifications including
nonspendable resources, restricted amounts, committed amounts and assigned amounts. Only the
General Fund reports unassigned amounts that have not been restricted, committed, or assigned to
specific purposes within the General Fund. However, it may be necessary for other governmental
funds to report negative fund balance as unassigned. The City Council must take formal action through
resolution or ordinance to establish, modify or rescind committed fund balance amounts. The City
Council has the authority to establish, modify or rescind assigned fund balance to a specific
department or project within a fund.
Fund balance classifications with the highest level of constraint are spent first; such that restricted fund
balance is spent before unrestricted fund balance when an expenditure is incurred for which both
restricted and unrestricted balances are available. Likewise, committed and assigned fund balances
are spent before unassigned fund balance when an expenditure is incurred for which any such
unrestricted fund balances are available.
CARRYFORWARD SAVINGS
The purpose of allowing carryforward savings is to provide an additional incentive for frugality by
operating departments. Unlike traditional governments, which have a "use it or lose it" approach to
annual operating budgets, Aspen's policy encourages departments to create savings in their annual
operating budgets. Savings in annual operating budgets are distributed as follows:
50% of the savings are carried forward into the appropriate department's savings account.
10% is allocated to a Central Savings account.
40% is returned to the appropriate fund balance.
Carryforward Savings represent 50% of the previous year's operating budget savings from individual
Departments or Funds. Departments and Funds are allocated these amounts as a reward to finding
efficiencies in their operations that allow them to meet their operating goals while spending less than
their appropriations. Prior year savings that are not expended are maintained in full and appropriated
every year unless directed otherwise by the City Manager. These appropriations can be spent on items
related to the Department's or Fund's mission but may not be used for ongoing expenditures. In
addition, if a particular expenditure was denied as part of the budget process, departmental savings
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may not be used for this purpose without City Manager approval. If the expenditure is to exceed
$10,000, the City Manager must authorize the expenditure. Departments and Funds can accrue these
savings to a maximum of 15% of their operating budgets.
Departments are expected to use their carryforward savings to fund small expenses needed to meet
City Council's and citizen requests as is consistent with our "just say yes" management philosophy. In
conjunction with the City's Outcome Measure program, the creation and use of operating savings is
designed to emulate the incentives found in management of American small businesses. Department
managers are expected to understand and measure their success in meeting customer expectations,
and, through the carryforward savings program, have enough management flexibility to reasonably
meet those expectations.
Central Carryforward Savings represents 10% of the previous year's operating budget savings from all
Departments and Funds. These appropriations are allocated to the City Manager's office for addressing
issues with city -wide implications or to address unusual but necessary departmental expenses.
The City maintains a balanced and diversified revenue structure to protect the City from fluctuations in
any one source due to changes in local economic conditions, which may have an adverse impact. In
order to maintain a stable level of services, the City shall use a conservative, objective and analytical
approach when preparing revenue estimates. The process includes an analysis of probable economic
changes and their impacts on revenues, historical collection rates and trends in revenue shortfalls.
To ensure the City's revenues are balanced and capable of supporting the desired levels of services, the
City has adopted the following revenue policy statements:
• Revenue forecasts shall be conservative, using generally accepted forecasting techniques and
appropriate data.
• Each year, major revenues will be projected for at least the next ten (10) years.
• The City will establish and maintain revenue sources that are diversified. Highly variable
revenue sources shall be earmarked for uses that are flexible in timing and /or discretionary in
need.
• Each year and whenever appropriate, existing revenues will be re- examined and possible new
sources of revenues will be explored to ensure that the City is balancing its revenue potential.
• Each year and whenever appropriate, intergovernmental revenues will be reviewed to
determine their short and long -term stability, to minimize the impact of any adverse changes.
Intergovernmental revenues shall be used as legally prescribed or otherwise set forth by policy.
• One -time revenues shall be used only for one -time expenditures and will not be used to
authorize on -going expenditures or programs.
• The City will carefully and routinely monitors any amounts due. An aggressive policy of
collection will be followed for all receivables, including taxes and fees. The City will fairly and
uniformly administer the provisions of all tax and fee ordinances among citizens and
businesses. This includes businesses located outside the City limits, but making regular
deliveries into the City, home occupations, seasonal vendors and individual owners of short
term rental accommodations.
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• Each year and whenever appropriate, the City will review its schedule of fees and related
administrative procedures. The amount of a fee shall not exceed the overall cost of providing
the facility, infrastructure or service for which the fee is imposed. In calculating that cost, direct
or indirect costs may be included. That includes costs that are directly related to the provision
of the service and support costs that are more general in nature but provide support for the
provision of service. The City reviews all fees for licenses, permits, fines and other
miscellaneous charges as part of the annual budgetary process.
For programs where the City subsidizes operations, the revenues will be sufficient for the minimum
stated recovery rate and /or dollar amount of subsidy. The recovery rate is defined as revenue as a
percent of expenditures. The dollar subsidy is defined as expenditures less revenue.
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I. Purpose
The purpose of this investment policy is to provide a guideline by which the funds that are not
otherwise needed to meet the cash flow demands of the City of Aspen (the City) can best be invested.
The objective of the investment portfolio is to earn the highest return for the City within the risk
guidelines designed to provide maximum security, while maintaining sufficient liquidity to meet
fluctuations in the City's cash flow needs.
II. Scope
This investment policy applies to all financial assets of the City as identified in the City's Comprehensive
Annual Financial Report and all funds managed for the benefit of the Aspen Pitkin County Housing
Authority (APCHA).
Investment income will be allocated to the various funds of the City and APCHA based upon their
respective participation and in accordance with generally accepted accounting principles. Interest will
be allocated on a monthly basis.
III. Standards of Care
1. Prudence: Investments shall be made with judgment and care — under circumstances then prevailing —
which persons of prudence, discretion and intelligence exercise in the management of their own
affairs, not for speculation, but for investment. The standard of prudence to be used is Standard IV
A.1 of the Standards of Practice Handbook of the Association for Investment Management and
Research (Appendix A). The Finance Director or his designee must exercise diligence and thoroughness
in making investment recommendations or in taking investment actions; have a reasonable and
adequate basis, supported by appropriate research and investigation, for such recommendations or
actions; make reasonable and diligent efforts to avoid any material misrepresentation in any research
report or investment recommendation; and maintain appropriate records to support the
reasonableness of such recommendations or actions. The investment officer shall be relieved of
personal responsibility for an individual security's credit risk or market price changes if he /she has
acted in accordance with written procedures and the investment policy.
2. Ethics and Conflicts of Interest: The standard governing Ethics and Conflicts of Interest shall be
Standard III(C) of the Standards of Practice Handbook of the Association for Investment Management
and Research (Appendix B). The Finance Director, investment officer, or other must disclose to the City
all matters, including beneficial ownership of securities or other investments that reasonably could be
expected to interfere with their duty to the City or ability to make unbiased and objective
recommendations. The receipt of gifts, gratuities, and travel expenses is governed by the guidelines of
the Ethics Policy as adopted by the Aspen City Council on what they or other City Staff may accept
from securities dealer firms.
3. Assignment of Responsibilities: Article VI, Section 6.8 of the Charter of the City of Aspen grants
authority and ultimate responsibility for the investment management activities of the City to the
Finance Director. The Finance Director may designate any of the investment functions to another
officer of the City (Investment Officer). The Finance Director shall establish written policy procedures
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for the operation of the investment program consistent with this policy. The procedures should
include reference to; safekeeping, repurchase agreements, wire transfer agreements, banking service
contracts and collateral /depository agreements. Such procedures shall include explicit delegation of
authority to persons responsible for investment transactions. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures established by the
Finance Director. The Finance Director will establish the day -to -day operating procedures for
conducting the City's investment activities. He or she will be responsible for understanding the risks of
the Investment Portfolio and establish the risk measurement and management process. In addition,
he or she is responsible for making certain that a system of checks and balances is in place between
the purchase /sale decision - making process and the settlement /reconcilement functions. In order to
facilitate the evaluation of the investment activities, the Finance Director may employ outside vendors
to make periodic appraisals of the City's investment program or to suggest specific investment
alternatives. The Finance Director or his /her designee is authorized to execute security transactions
for the City's Investment Portfolio within the limitations established by this policy. Should unexpected
market conditions arise, the Finance Director or his designee may approve a transaction, which would
not be in accordance with the Investment Policy but is necessary to protect the safety and liquidity of
the City's investment portfolio, and is guided by Section 111.1 of this policy. Such transactions must be
reported to the City Council at their next meeting. All securities transactions will be made in
accordance with the City's overall interest rate risk profile and policy. Liquidity needs /constraints will
also be taken into account when investment decisions are made.
IV. Objectives
1. Safety of principal is the foremost objective of the investment program. Investments of the City shall
be undertaken in a manner that seeks to ensure the preservation of capital in the overall investment
portfolio. To attain this objective, the City will diversify its investments by investing funds among a
variety of securities and security types offering independent returns and financial institutions.
2. Liquidity The City's investment portfolio will remain sufficiently liquid to enable the City to meet all
operating requirements which may be reasonably anticipated. A prudent reserve shall be maintained
to meet unanticipated cash requirements.
3. Return on Investments The City's investment portfolio shall be designed with the objective of
attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with
the City's investment risk constraints and the cash flow characteristics of the portfolio.
V. Safekeeping and Custody
1. Authorized Financial Dealers and Institutions The Finance Director or designee will maintain a list of
authorized securities firms that have been approved by City Council, through a Request for Proposal
process, in accordance with the City's Procurement Code for Contract Formation. This list will include
the established limits on unsettled trades, safekeeping arrangements, repurchase agreements,
securities lending and borrowing, total credit risk with dealer, and any other transaction with default
risk. This list of authorized securities dealers and their established limits will be reviewed annually, by
Finance Staff. The Finance Director or designee will be responsible for obtaining sufficient knowledge
about securities firms and personnel. Files will be maintained for all firms with which the City
transacts investment business. These files will include:
a) Financial data, annual reports and credit reports.
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b) Background data of the dealer's sales representative(s) with whom business will be conducted.
c) Any information available from State or Federal regulators or securities industry self - regulatory
organizations concerning any formal enforcement actions against the dealer, its affiliates, or
associated personnel.
d) Public deposit shall be made except in a qualified public depository established by Colorado law.
2. Internal Controls The Finance Director or designee is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the City are protected from loss, theft
or misuse. The internal control structure shall be designed to provide reasonable assurance that
these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a
control should not exceed the benefits likely to be derived and (2) the valuation of costs and
benefits requires estimates and judgments by management.
Accordingly, the Financial Director or designee shall establish a process for an annual independent
review by an external auditor to assure compliance with policies and procedures. The internal
controls shall address the following points:
a) Control of collusion
b) Separation of transaction authority from accounting and recordkeeping
c) Custodial safekeeping
d) Avoidance of physical delivery securities
e) Clear delegation of authority to subordinate staff members
f) Written confirmation of transactions for investments and wire transfers
g) Development of a wire transfer agreement with the lead bank and third -party custodian
3. Delivery vs. Payment All trades where applicable will be executed by delivery vs. payment (DVP) to
ensure that securities are deposited in an eligible financial institution prior to the release of funds.
Securities will be held by a third -party custodian as evidenced by safekeeping receipts.
VI. Performance Standards
1. Benchmark The City's investment strategy is active. Given this strategy, the basis used by the
Finance Director to determine whether market yields are being achieved shall be to identify a
comparable benchmark to the investment portfolio. Examples of benchmark rate return are the
90 day US Treasury Bill, 6 month US Treasury Bill or the average Federal Funds Rate.
2. Reporting Consistent with the City Charter, the Finance Director will provide monthly investment
reports, to the City Manager and City Council, which provide a clear picture of the status of the
current investment portfolio. The report should include comments on the fixed income markets
and economic conditions, discussions regarding percentages of investments by categories,
possible changes in portfolio structure and strategy going forward.
VII. Statutory Investment Guidelines (Statute: Section 24 - 601, C.R.S.)
1. Custody of Investment Securities Unless otherwise stated, all investments must be held in the
City's name, or in the custody of a third party on behalf of the City, or in a custodial account with an
eligible public depository or securities firm on behalf of the City.
2. Maximum Maturity The maximum maturity date for all securities shall be no more than five
years from the date of purchase unless otherwise authorized by the City Council, with exceptions
noted under limitations included in Section VII, 4 of this policy.
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3. Coupon Rate Fixed at Settlement Public funds shall not be invested in any security on which
the coupon rate is not fixed from settlement until maturity, other than shares in qualified money
market mutual funds, unless the coupon rate is established by reference to specified rate indices,
such as the U.S. dollar London interbank offer rate ( "LIBOR ") of one year or less, or the rate for a
U.S. Treasury security with a maturity of one year or less, or the rate of a municipal bond index, or
to the cost of funds index, or the prime rate. (Section 24 -75- 601.1(1.3), C.R.S.)
4. Legal Investments of Public Funds (Statute: Section 24 - 75 - 601.1, C.R.S.)
a) U.S. Treasury Bills and Notes
b) Federal Farm Credit Bank
c) Federal Land Bank
d) Federal Home Loan Bank
e) Federal Home Loan Mortgage Corporation
f) Federal National Mortgage Association (FNMA)
g) Export- Import Bank
h) Government National Mortgage Association (GNMA)
i) Obligations of any other U.S. agency if control of agency by U.S. is at least as extensive as
those investments mentioned above. Security must have highest rating category of at least
one recognized rating agency at time of purchase.
j) Obligations of the World Bank, Inter - American Development Bank, Asian Development
Bank, and the African Development Bank. Security must have one of two highest rating
categories of at least one nationally recognized rating agency at time of purchase.
k) G.O. Bonds of any state, District of Columbia, U.S. Territory, or any of their subdivisions.
(This includes the State of Colorado and its related entities and Colorado Local Governments
and their related entities.) Security must have one of three highest rating categories of at
least one nationally recognized rating agency at time of purchase. The Colorado
investments may have a maturity in excess of five years.
I) Revenue Bonds of any state, the District of Columbia, a U.S. Territory, or any of their
subdivisions. Security must have one of two highest rating categories of at least one
nationally recognized rating agency at time of purchase.
m) Bankers Acceptance issued by a state or national bank. The bank must have combined
capital and surplus of at least $250,000,000. Deposits must be FDIC insured. The bank's
long -term debt must have one of three highest ratings of at least one nationally recognized
rating agency at time of purchase.
n) Commercial Paper. Security must have the highest rating from at least one nationally
recognized rating agency at time of purchase.
o) Any obligation, certificate of participation, or lease- purchase of the City of Aspen.
p) Any interest in any local government investment pool pursuant to Section 24 -75 -701, et
seq., C.R.S. See below.
q) Repurchase Agreements in securities listed in a) through i). Securities of the U.S.
Government or its agencies as listed above which must have a coupon rate that is fixed
from the time of settlement until its maturity and must be marketable. Market value must
at all times be at least equal to funds invested. Title or perfected security interest in
securities must be transferred to the City or custodian. Securities must be actually delivered
to the City or third -party custodian or trustee for safekeeping. Collateral securities must be
collateralized at no less than 102% and marked to market no less than weekly. These
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investments may have a maturity in excess of five years. A master repurchase agreement
must be signed with the bank or dealer.
r) Money Market Funds Must be registered as investment company. Fund investment policies
include seeking to maintain a constant share price. No sales or load fee can be added to the
purchase or redemption price. The fund invests only in securities that have a remaining
maximum maturity as specified in rule 2a -7 of the federal "Investment Company Act of
1940," as long as such rule or amendment to it does not increase the maximum remaining
maturity to a period greater than three years. The fund has assets of $1 billion or more, or
has the highest credit rating from one or more nationally recognized rating agency. If the
fund has assets of less than $1 billion or has a rating less than the highest credit rating from
one or more nationally recognized rating agencies, then the fund's investments must
consist only of securities listed a) through q) above; or perfected reverse repurchase
agreements of less than 30 days relating to securities listed in a) through p) above; or
securities not listed in a) through q) above that are tax - exempt if these do not exceed 15
percent of the investments of the fund; and the dollar- weighted average portfolio maturity
of the fund meets the requirements of rule 2a -7 or amendments to it, so long as such rule
or amendment to it does not increase the dollar- weighted average portfolio maturity to a
period greater than 180 days.
s) U.S. dollar- denominated corporate or bank debt. Must be issued by a corporation or bank
organized and operated within the United States with a net worth in excess of
$250,000,000; the notes must mature within three years and must carry at least two credit
ratings not below "AA- or Aa3" from any nationally recognized credit rating agency; the
book value of investment in this type of debt shall at no time exceed 30 percent of the book
value of the City's investment portfolio, or 5 percent of the book value of the City's
investment portfolio if the notes are issued by a single corporation or bank.
t) A securities lending agreement using securities authorized in a) through i). Must be entered
into with a qualified provider that provides and maintains collateral with a mutually agreed
upon custodian. Such collateral shall be in the form of cash or securities that are authorized
investments for the public entity and have a value equal to 102% of the value of the
securities lent by the public entity plus accrued interest. Corporate securities collateral shall
have a value equal to 105% of the value of securities. Either the custodian or the qualified
provider if verified by the custodian marks to market daily the value of the collateral. If all of
the collateral is cash, the difference in valuation need only be resolved if the collateral is
less than 100% of the value of the securities. A minimum of 20% of investments purchased
with cash collateral matures or is redeemable on any business day; an instrument
guaranteed by the US government that has a variable interest rate set off of a money
market index readjusted every 95 days has a maturity equal to the period remaining until
the next readjustment of the interest rate; instrument issued by a corporation that has a
variable rate of interest set off of a money market index readjusted every 95 days has a final
maturity 30 days or an unconditional put back to the issuer 95 days; the maturity of fixed
rate investments or repurchase agreements does not exceed 190 days; the investment
maturity or reset date is not greater than 95 days. The securities lending agreement is
approved and designated by written resolution duly adopted by a majority vote of the City
Council, which resolution shall be recorded in its minutes.
VIII. Collateralization will be required on purchases of certificates of deposit and repurchase (and
reverse) agreements. In order to anticipate market changes and provide a level of security for all
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funds, the collateralization level will be 102% of par value of principal and accrued interest.
Collateral will be held by an independent third party with whom the City has a current custodial
agreement. A clearly marked evidence of ownership must be supplied to the City and retained.
IX. Liquidity is the ability to generate cash at a reasonable cost to meet both expected and unexpected
demand for funds from both the City and its vendors without disrupting routine operations or raising
adverse questions from funds providers. Maintaining adequate liquidity is essential when conducting
normal municipal activity and when providing for potential emergency situations.
The City's liquidity position is measured by its capacity to generate funds. Adequate capacity is
demonstrated by the ability to raise sufficient levels of cash promptly and at a reasonable cost. This
can be accomplished through disposing of liquid assets, increasing short-term borrowing, issuing
additional liabilities, decreasing holdings of non - liquid assets, increasing longer -term liabilities, or
raising taxes. The goal is to maintain an adequate level of liquidity without impairing the long -term
efficient use of the City's assets.
1. Measurement Since no single ratio can define adequate liquidity, the Finance Department will
study several ratios to construct the most accurate picture of the state of the City's liquidity
position. It is the City's intention to balance the need for liquidity with the need for interest
income. The following are measures to assess trends in liquidity:
In order to plan for and manage seasonal liquidity needs, liquidity measures will be monitored
monthly. The Finance Director or designee will look at cash flows going forward and prepare
best /worst case scenarios for funds necessary to meet the City's obligations.
On a daily basis, the Finance Director or designee will review local and national economic factors
that may affect the City's liquidity or funding needs. This review will include changes to the local
economy, interest rate environment, local employment projections, and projected population
changes.
2. Administration The liquidity ratios are to be monitored at least monthly (if not weekly or daily).
This will ensure that the City has adequate liquidity at all times and assist the Finance Director or
designee in assessing trends which could adversely affect the liquidity of the City.
3. Sources of Liquidity The City's primary sources of liquidity are listed below:
a) Available Cash Balances.
b) Money Market Funds. Excess liquidity will be placed in Money Market Funds in compliance
with and monitored under the Investment Policy.
c) Maturing securities. The City will ladder its Investment Portfolio to make certain that securities
are maturing in accordance with anticipated cash flow needs. The Finance Director or
designee will be responsible for establishing a maturity ladder appropriate for the City.
d) Investment Portfolio. Securities will be monitored for market value changes to identify viable
options to be liquidated for liquidity needs.
e) Maximum Maturities. To the extent possible, the City will attempt to match its investments
with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will
not directly invest in securities maturing more than five years from the date of purchase.
However the City may collateralize its repurchase agreements using longer -dated investments
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not to exceed ten years to maturity.
Reserve funds may be invested in securities exceeding ten years if the maturity of such
investments is made to coincide as nearly as practicable with the expected use of the funds.
4. Liquidity Contingency Plan In the event that the Finance Director or designee anticipates changes in
normal municipal operations, it must respond to potential liquidity problems in a thorough and
organized manner. By developing a liquidity contingency plan, the City will be able to deal with a
potential or real liquidity problem.
Asset and liability management procedures should be followed to ensure that adequate cash
sources are available and that minimal cash outflows occur. Also, any measures taken to manage
liquidity should be in accordance with the parameters regarding interest rate risk.
In the event of a liquidity shortfall, the City will generate cash to meet its obligations by undertaking
one or all of the following steps (in this order):
a) Utilize Available Cash Balances. Liquidate money market positions
b) Utilize funds from maturing investments
c) Liquidate investments provided their market value is close to book value
The City Manager and City Council must be informed of any liquidity shortfall and provided with the
details of the contingency plan.
5. Other Considerations
The liquidity management of the City must be made in harmony with the City's Interest Rate Risk
Management processes. Any liquidity funding decisions made will directly affect the City's interest
rate risk profile. The potential liquidity management decisions should be considered when
evaluating the interest rate risk profile of the City.
As mentioned above, the City's Investment Portfolio will be laddered to have sufficient maturities to
match off against potential maturing liabilities. On an ongoing basis, the Investment Portfolio will be
managed within the parameters of both the investment policy and the liquidity management needs
of the City.
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