Title
Resolution affirming the County Investment Policy.
Body
Recommended Action: Adopt the resolution to affirm the county investment policy.
The county investment policy originally was adopted in 2000 and has been modified seveal times, most recently in 2012. The policy has been approved by the state's Municipal Investment Board, which gives the county access to investment vehicles not authorized by state law for local governments whose investment policies are not so approved. Sedgwick County is one of nince governments thoroughout Kansas that have state-approved investment policies.
One provision of the investment policy requires an annual review by staff and modification as may be necessitated by changing conditions. The review has been performed, and no changes of existing policy are necessary or recommended. Nevertheless, as a condition of continued state approval, the Municipal Investment Board requires that the governing body take action each year to affirm or readopt the policy.
Alternatives: Reject the resolution, in which case the Pooled Money Investment Board has said it will revoke state approval of the policy. That in turn would narrow the list of authorized investment vehicles available to the county, which would have the dual effects of (1) increasing risk because of the reduced diversification of the investment portfolio; and (2) reducing the county's yield on investments because the remaining authorized investment vehicles typically offer lower yields than those approved for governments having a state-approved policy.
Financial Considerations: The recommended action imposes no cost on the county. Failure to take the recommended action likely would result in reduced investment income, but the amount of lost revenue is not known.
Legal Considerations: The resolution was drafted and has been approved as to form by the County Counselor.
Policy Considerations: The investment policy has been adopted and would remain in effect whe...
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