DENALI BOROUGH, ALASKA
ORDINANCE NO. 95-09
INTRODUCED BY: FINANCE COMMITTEE
AN ORDINANCE OF THE DENALI BOROUGH
AMENDING CHAPTER 19 OF THE
DENALI BOROUGH CODE OF ORDINANCES,
SECTION 5.
BE IT ENACTED by the Assembly of the Denali Borough, Alaska
that:
Section 1.
Classification. This Ordinance is of a general and permanent
nature and is intended to become part of the Denali Borough Code of Ordinances.
Section 2. Denali Borough, Chapter 19 amended.
Section 5 of Chapter 19 of the Denali Borough Code of Ordinances is
hereby amended.
Section 5. Permanent Investment
Fund.
A.
Management Guidelines.
The Assembly recognizes its
fiduciary responsibility to manage the financial assets of the Denali Borough
Permanent Investment Fund (DBPIF) in the sole and best interests of the Fund
and wishes to establish a standard of care for investment of fund assets. The following standard of care shall apply
to all investments.
The
Borough Assembly, staff, Investment Advisors, and/or Bank Custodians
shall exercise the judgment and care under the circumstances then prevailing
which an institutional investor of ordinary prudence, discretion, and
intelligence exercises in the management of large investments entrusted to it,
not in regard to speculation, but in regard to the long term investment of
funds considering the probable safety of capital as well as probable income. The Assembly will establish written
investment policies by formal Resolution which shall be adhered to without
exception.
The
Assembly will review the investment policies of the Corporation at least once
each year during the month of May and will, by formal action, re-adopt or
modify said policies.
The Assembly will establish by formal resolution a plan for the allocation of investment assets each year thus determining a percentage range of the amount of assets which will be committed to marketable debt securities and common stock.
The
Clerk shall maintain on file within the offices of the Borough monthly reports
which indicate the following: (1) All transactions affecting the investment
account, to include purchases and sales of securities, transfers of cash into
and out of the account, interest or dividends received by the account; (2) A
listing of all assets held in the investment account including identification
of the security, original purchase price, and current market price.
B.
Investment Policies.
The Assembly wishes to establish
DBPIF investment guidelines pertaining to risk, diversification,
Investment Advisors and/or
Custodians. The following securities
are authorized for investment for the DBPIF:
1. Obligations
of the United States Treasury.
2. Obligations
of agencies of the United States Government.
3. Certificates
of deposit and bankers acceptances which have a demonstrated secondary market
and are issued by a financial institution which is rated at least "A"
by one of the two major rating services.
4. Certificates
of deposit issued by Alaska banks which do not fall in the above category
provided the certificates do not exceed FDIC insurance and non-liquidity is
acceptable.
5. A
no-load mutual fund which replicates the S&P 500 Index.
6. No
load money market mutual fund.
No
investment shall be made in any one security in excess of five percent of the
total investment portfolio, measured by market value, except for obligation of
the U.S. Government and its agencies.
Investments shall be diversified in a broad market investment such as to
mirror the market as a whole.
The
Investment Advisor and/or the Custodian Bank shall be engaged by formal
written contracts [and the Investment Advisor and/or Custodian Bank will
be two separate parties]. [Both parties] The Investment Advisor and/or the
Custodian Bank will be required to submit monthly transaction and asset
reports. The Investment Advisor will be
registered with the State of Alaska and the U.S. Securities and Exchange
Commission. The Custodian Bank will be
a regulated bank and the Investment Advisor will be insured with a professional
liability policy and the Custodian be insured with a banker's bond or similar
fidelity policy.
Section 3. Effective
Date. This ordinance becomes effective upon
adoption by the Denali Borough Assembly and signature of the
Mayor.
DATE INTRODUCED: May 21, 1995
FIRST
READING: May 21, 1995
PUBLIC HEARING: June 11, 1995
PASSED and APPROVED by the DENALI Borough ASSEMBLY this 11th
day of
June, 1995.
SIGNATURE ON FILE
Mayor
ATTEST: SIGNATURE ON FILE
Borough Clerk