3.20.090 Authorized and suitable investments.
A. All municipal corporations in Washington State, including the City of Anacortes, are empowered by statute to invest in the following securities: (The enabling legislation is RCW 39.58 and, as amended, RCW 35.39, 39.59, 39.60, 43.84.080 and 43.250). The city has chosen to limit the authorized investments to the following:
1. Obligations of the U.S. government; U.S. treasury notes, bonds and bills.
2. Obligations of U.S. government agencies, corporations wholly owned by the U.S. government or any Government Sponsored Enterprises (GSEs).
3. Banker’s acceptances purchased on the secondary market rated with the highest short-term credit rating of any two Nationally Recognized Statistical Rating Organizations (NRSROs), at the time of purchase. If the banker’s acceptance is rated by more than two NRSROs, it must have the highest rating from all the organizations.
4. Commercial paper, provided that the finance director adheres with the policies and procedures of the State Investment Board regarding commercial paper (RCW 43.84.080(7)); and restricts the purchase of asset backed commercial paper.
5. Certificates of deposit of financial institutions which are “qualified public depositories” and which are in accordance with the net worth restrictions placed on such deposits (RCW 39.58.130). For state financial institutions that are non-participants in the state’s collateral protection pool, investments up to the amount of Federal Deposit Insurance Coverage.
6. Repurchase agreements (provided a master repurchase agreement has been executed).
7. Local government investment pool, for proceeds of bonds, liquidity funds or other debt obligations.
8. Its own bonds or warrants of a local improvement district which are within the protection of the local improvement guaranty funds law.
9. Obligations of the State of Washington or its political subdivisions.
B. Securities that are not eligible as investments for public funds in the State of Washington:
1. Corporate stocks.
2. Corporate bonds.
3. Asset backed commercial paper.
4. Foreign government obligations.
5. Futures contracts.
6. Investments in commodities.
7. Real estate.
8. Limited partnerships.
9. Negotiable certificates of deposit.
10. Reverse repurchase agreements.
11. Rate speculative derivative securities.
12. The city is prohibited from purchasing securities that leverage the portfolio or are used for speculation on interest rates. (Ord. 2937 § 1, 2014)