HomeMy WebLinkAboutResolution No. 2024-12 Approving PPFD Investment PolicyRESOLUTION NO. 2024-12
A RESOLUTION OF THE PASCO PUBLIC FACILITIES DISTRICT
BOARD, TO ADOPT THE PASCO PUBLIC FACILITIES DISTRICT
INVESTMENT POLICY.
WHEREAS, the Pasco Public Facilities District (PPFD) was duly formed pursuant to
Chapter 35.57 of the Revised Code of Washington on July 15, 2002, by the adoption of City of
Pasco Ordinance No. 3558, and granted all powers provided by law pursuant to RCW 35.57.010;
and
WHEREAS, the PPFD Board confirms the need to establish standards and procedures for
selection of PPFD investments in compliance with RCW 35.57 and other applicable laws.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE PASCO PUBLIC FACILITIES DISTRICT AS FOLLOWS:
Section 1. The Pasco Public Facilities District (PPFD) adopts the "Pasco Public
Facilities District Investment Policy" as the policy and procedures for investing PPFD funds, a
copy attached hereto as Exhibit A.
Section 2. That if the document needs to be updated, the PPFD Board may adopt a
newer revision by motion and majority vote.
Section 3. That this Resolution shall take effect immediately.
PASSED by the Pasco Public Facilities District Board of Directors, of Pasco, Washington,
on this 22❑d day of October, 2024.
PASCO PUBLIC FACILITIES DISTRICT
M• rk Morrissefte, Board President
ATTEST:
(, L ) Z,�v 642L,
Caroline Bowdis , Secretary/Treasurer
Pasco Public Facilities District
APPROVED AS TO FORM:
Kerr Ferguson ,
Attorney fo FD
Resolution — 2024-13 — PPFD Investment Policy - 1
Pasco Public Facilities District
Investment Policy
1. Purpose
The purpose of this policy is to establish guidelines for the investment of funds not
currently obligated for operational or capital needs. The goal is to ensure the preservation
of capital, provide liquidity to meet operating needs, and achieve a reasonable return on
investment in compliance with state law.
2. Scope
This policy applies to all funds of the Pasco Public Facilities District (PPFD) that are not
immediately needed for daily operations.
3. Objectives
The primary objectives of the PPFD's investment activities are, in order of priority:
1. Safety: Safeguarding the principal of the investments by minimizing credit and
market risks.
2. Liquidity: Ensuring that funds are available to meet cash flow requirements.
3. Return on Investment: Attaining a market rate of return consistent with safety
and liquidity objectives.
4. Investment Authority
The ultimate responsibility and authority for the investment of District funds resides with
the Board of Directors who have the authority to direct the management of the District
investment program. The overall responsibility for managing the PPFD's investment
program is hereby delegated to the Fiscal Agent, under the supervision of the Executive
Director. The Fiscal Agent will oversee investment transactions and ensure compliance
with this policy.
5. Authorized Investment Options
The PPFD is authorized to invest in the following instruments, in accordance with RCW
39.59.020:
o Local Government Investment Pool (LGIP): Funds may be invested in the
Washington State LGIP, a pool managed by the State Treasurer's Office. The LGIP
provides safety, liquidity, and competitive returns with daily access to funds.
o Deposits with US Bank: The PPFD may invest surplus funds in IntraFi Cash Service
(ICS), or other eligible financial instruments offered by US Bank. ICS provides
multi -million -dollar FDIC insurance, one rate, online access, and no additional
fees. US Bank provides safety, liquidity, and competitive returns with daily access
to funds.
6. Investment Approval Resolution
The Board of Directors hereby approves, by resolution, the decision to move forward with
investments in the Local Government Investment Pool (LGIP) and/or US Bank. Specific
allocations, terms, and conditions of the investments will be presented for review and
approval in subsequent meetings to ensure transparency.
Page 1 PPFD Board Approved 10.22.2024
Pasco Public Facilities District
Investment Policy
7. Investment Strategy
The PPFD will employ a strategy focused on matching investment maturities with
anticipated cash flow needs. Investments will typically be short-term, with maturities not
exceeding five years unless specifically approved by the Executive Director and the Board.
8. Internal Controls
The fiscal agent will be responsible for establishing and maintaining an internal control
structure designed to ensure the assets of the District 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 the cost
of control should not exceed the benefits likely to be derived, and the valuation of costs
and benefits requires estimates and judgments by management. The internal controls
shall address the following points at a minimum:
• Control of collusion;
• Separation of transaction authority from accounting and recordkeeping;
• Custodial safekeeping;
• Avoidance of physical delivery of marketable securities;
• Clear delegation of authority to subordinate staff members;
• Written confirmation of transactions for investments and wire transfers;
• Dual authorizations of wire transfers;
• Staff training.
9. Reporting
The Executive Director or Fiscal Agent will provide quarterly investment reports to the
Board of Directors. These reports will include details on investment performance, market
conditions, and compliance with the investment policy.
Page 2 PPFD Board Approved 10.22.2024