4.10.040 Authorized investments.
(a) City monies shall be invested only in the following instruments. All securities purchased by the City, and all other City investments, must mature not later than the time indicated below, measured from the date of the City’s investment transaction.
(1) United States (U.S.) Treasury securities – Four years.
(2) Other obligations by the U.S. government, its agencies, and instrumentalities – Four years.
(3) Repurchase agreements of acceptable securities listed in subsections (a)(1) and (a)(2) of this section which meet a margin requirement of 102 percent; provided, however, the maturity limitations specified in those subsections do not apply if the securities in the repurchase agreement are marked to market daily.
(4) Certificates of deposit and other deposits at banks and savings and loan associations collateralized as provided in CCO 4.10.070 – Four years.
(5) Uncollateralized deposits at banks and savings and loan associations, to the extent that the deposits are insured by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC) – Four years.
(6) Bonds and notes which are issued by any State or political subdivision and which are general obligation bonds and have a minimum rating of AA2 by Moody’s Investor’s Service, Inc., and of AA by Standard and Poor’s Corporation – Four years.
(7) Prime bankers’ acceptances offered by the 50 largest banks – 180 days.
(8) Money market mutual funds whose portfolios consist entirely of instruments specified in subsections (a)(1), (a)(2) and (a)(3) of this section – Maturity date not applicable.
(9) The Alaska Municipal League Investment Pool, Inc., made in accordance with the terms of that pool’s “Common Investment Agreement.”
(b) No person shall invest any City monies in any instrument which is not listed above. This prohibition includes, but is not limited to, investment of City monies in any mutual fund (except as otherwise provided in subsection (a)(8) of this section), common or preferred stock, precious metal, corporate bond, option contract, or futures contract.
(c) This chapter represents the maximum amount of authority and discretion which the Finance Director and Controller may utilize in investing City monies. Nothing in this chapter shall be construed to prohibit the Finance Director and Controller from adopting standards, rules, policies, and procedures which are more restrictive than those contained in this chapter. The enumeration in this chapter of instruments which are authorized for City investments shall not be construed as requiring the Finance Director and Controller to invest in all, or any particular, instrument contained in said list at any given time. The Finance Director and Controller may invest in some or all of said instruments as they deem appropriate. Similarly, the enumeration of instruments which are acceptable as collateral for City investments shall not be construed as requiring the Finance Director and Controller to accept all or any particular instrument contained in said list at any given time. The Finance Director and Controller may accept some of said instruments and reject others at their discretion. [Code 1979 § 6.05.04.]