2005 MWMC Financial Plan - Laserfiche WebLink

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As part of its MWMC administration functions, the City of Springfield manages MWMC funds in compliance with the Springfield Investment and Portfolio Policies (Appendix N) as updated and amended from time to time. These policies are consistent with the local government investment requirements defined in Oregon Revised Statutes (ORS 294), and are substantially similar to the public funds investment policies of Eugene and Lane County. Policy Il Cash on hand that is not invested is kept in a local bank. Because the balance is usually in excess of the FDIC insured amount of $100,000, the bank must participate in the Oregon Certificate of Participation Collateral Pool. This protects depositors from loss in the event of bank failure. Policy I2 MWMC funds are invested based on the following criteria: Safety, Legality, Liquidity, Diversity, and Yield. For purposes of investing, MWMC and Springfield funds are co-mingled, but are tracked separately. Policy I3 For day-to-day investing purposes, the City of Springfield uses the State of Oregon Local Government Investment Pool (LGIP). The LGIP provides a modest rate of return with nearly immediate liquidity. In addition to the LGIP, the City of Springfield can invest in U.S. Treasury Obligations, U.S. Government Securities, Bankers' Acceptances, Corporate Bonds, Repurchase Agreements, Oregon and Local Government Obligations, Regional Debt Obligations, and Time Certificate of Deposits. With the exception of the LGIP, no more than 25% of the portfolio can be invested with any one financial institution, and there are limits to the amount that can be invested in any one ~ of instrument. For instance, a maximum of 25% of the portfolio can be invested in corporate bonds. Discussion -Guidelines were created to ensure adequate liquidity. For instance, at least 10% of the short-term investments must be in instruments with a maturity of less than 30 days, 25% must mature within 90 days and, with certain exceptions, all investments in this portfolio must have a maturity date of 18 months or less. Longer maturities are allowed with approval of the Finance Director and when matched to a specific cash flow. The City of Springfield Finance Director also serves as the MWMC Chief Financial Officer. The investment policy requires that internal controls for cash and investment activity be established and followed. The policy also requires that the financial condition of the broker/dealers and financial institutions involved in the investment program be reviewed annually and that monthly cash and investment reports be issued and reviewed to demonstrate compliance with the limits outlined in the policy (Appendix IV contains the full text of the City of Springfield Investment Policy). Capital Planning and Financing Capital planning and financing policies direct those necessary future capital improvements be identified together with the financial resources needed to complete them. These policies also direct that major capital costs be spread over time to stabilize user rates and to provide equity among current and future ratepayers for long-lived capital improvements. Policy Cl The Commission shall maintain a capital planning and financing system for use in ~; '; preparing amulti-year CIP for consideration and adoption by MWMC and ratification by the partner agencies' governing bodies as a part of the Commission's-budget process. This system '' shall include preparation of a rolling CIP and a Capital Financing Plan (described in Policy F4). 2005 MWMC Financial Plan Page 14