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Home My WebLink About2001 11 12 Regular A Banking Services and Treasury Management Review Report COMMISSION AGENDA ITEM A CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X Novemher 12, 2001 Meeting MGR A nthori zati on REQUEST: The Finance Department requesting the Commission review the Banking Services and Treasury Management Review Report prepared by Steven Alexander of Public Financial Management and direct Staff to move forward with the proposed recommendations for improvement. PURPOSE: The purpose of this Agenda Item is to gain Commission approval to move forward with the recommendations outlined by Steven Alexander of Public Financial Management in his report entitled Banking Services and Treasury Management Review. CONSIDERATIONS: . Staff determined that the current structure of its banking services was not conducive to effective cash management procedures. . Staff met with. Steven Alexander of Public Financial Management in October 2000 to discuss a comprehensive independent review by his firm of the City's current banking and treasury services and procedures and to make recommendations for improvement. . In April of2001, the Commission agreed to engage Mr. Alexander in his Banking and Treasury Review. ATTACHMENTS: Banking Services and Treasury Management Review dated 10/31/2001 by PFM RECOMMENDATION: The Finance Department recommends that the City Commission review the report provided by Steven Alexander of Public Financial Management and direct staff to proceed with his recommended improvements. COMMISSION ACTION: I I I I I I I I I I I I I I I I I I I City of Winter Springs Banking Services and Treasury Management Review October 31, 2001 Public Financial Management Steven Alexander, CCM Senior Managing Consultant 201 South Orange Avenue, Suite 720 Signature Plaza Orlando, FL 32801 (407) 648-2208 (407) 648-1323 fax I I I I I I I I I I I I I I I I I I I T able of Contents Page Scope of Project 3 Recommendations Executive Summary 4 1. The City should develop a model to more accurately forecast liquidity needs 2. An Investment Strategy should be developed and implemented for each fund 3. Implement the Investment Policy 4. The Cash and Investment program needs to implement operational procedures and cross training strategies to ensure proper staffing 5. Restructure bank accounts and services and depository relationships need to be re-formalized Conclusion Exhibits Cash Flow Analysis Bank Accounts Summary (Oct. 2000 - Sept. 2001) Proposed Bank Account Structure City's Investment Policy Internal Controls and Operational Procedures Manual State Board of Administration Historical Yields Account Analysis Statement 5 10 12 / ,/ /(1 14 15 17 19 Tab 1 2 3 4 5 6 7 Banking Services and Treasury Management Review Page 2 I I I Scope of Project I I I I I I I I I I I I I I I I Public Financial Management, Inc. ("PFM") was engaged by the City of Winter Springs ("City") to review the cost of banking services and to improve the efficiency and cost effectiveness of its treasury management operation. The project included the following services: · review the current use of banking services and bank account structure, · evaluate and comment on existing bank contracts and agreements, . identify areas where costs could be reduced, · develop a cash flow analysis report, . evaluate current investment practices, and · develop an investment policy and recommend a cash and investment program. PFM began its review by discussing the current use of banking services and cash management functions with the City's finance staff. Through these discussions, we were able to identify the necessary banking services (both current and proposed) and to identify areas where staff felt that efficiencies were possible. We also gained an understanding of the City's cash management and operational requirements through a review of the City's internal procedures. The next step in the review process was to examine contracts, agreements, account analysis statements, investment activity, and provide a draft investment policy for the Operating Funds. Staff indicated that transaction volume remains relatively constant throughout the year, so we based our analysis on the average volume of activity for a one- year period. Fees paid by the City for these banking services were compared to national averages and those paid by comparable organizations. This analysis generated data that will be valuable to the City as it redesigns its banking structure and cash and investment practices. Banking Services and Treasury Management Review Page 3 I I Executive Sumr:nary I I I I I I I I I I I I I I I I I Cash and Investment Management Review The Cash and Investment Management program is often an organization's cornerstone to achieving efficient and effective financial objectives. The program's mission is to ensure that cash and investment assets are securely held, that policies and procedures are in place to ensure internal controls are adequate to prevent mismanagement or misappropriation of City funds and to ensure that investment guidelines are designed to preserve principal while maximizing yield. Without a comprehensive plan or policy for preserving and protecting the financial assets of the City, we acknowledge that the organization may be placing the City's long-term economic health at risk. Considering that the size of the City's portfolio is approximately $20 million, we recommend that the City place a priority on implementing the systematic improvements to the cash and investment program as presented in this report. The vulnerability that most public entities commonly ignore in their organizations exists in the management of the cash and investment program. Nowhere else within the organization are such critical decisions made, often by one or two individual staff members, that can have the potential for disturbing the entire organization. Few organizations employ a formal process of frequent and comprehensive review of transactions or performance of their cash and investment assets. The City has recognized the importance of this most basic and foundational program and will place an emphasis on the development of and adherence to sound policies and procedures. Management must diligently monitor the strategies employed and the results delivered by the finance staff, and thereby will have the greatest opportunity for maximizing their long-term financial goals. However, in order to completely implement and establish an investment program, staffing issues must be addressed. The City should review the option of hiring additional personnel or outsourcing certain investment functions. In our evaluation of the City's cash and investment management program, we focused attention on policies, procedures and exposure to risk. We have identified a number of issues that should be addressed expeditiously in order to adequately safeguard the financial assets of the City. The recommendations fall into five categories: . Development of Cash Flow Forecasting Models . Investment Strategy Development . Development Investment Policy/Cash Policy Revisions . Implement Internal Controls and Operational Procedures · Restructure bank accounts and services and depository relationships need to be re- formalized Banking Services and Treasury Management Review Page 4 I I I I I I I I I I I I I I I I I I I Recommendations Recommendation 1: The City should develop a model to more accurately forecast liquidity needs. The City's inability to forecast liquidity needs severely impedes the effective management of the investment program. One of the basic tools of effective cash management is the ability to forecast when funds are needed. The City needs to improve its capability for predicting project budgets and using historical data to forecast flow patterns. During the review of the cash and investment program, we found that cash flow forecasting has not been fully implemented. Without information concerning future liquidity needs, the City is reluctant to commit funds for longer-term investments. The City should pursue the development of a Cash Forecasting Model using a two-pronged approach: 1. Using actual historical cash flow experience from bank statements and investment detail and 2. Requiring more detailed budget preparation particularly relating to capital projects and special programs An evaluation of historical cash and investment balances can provide useful information in that it identifies revenue and expenditure patterns that the City has experienced over time. Typically, organizations will be able to readily identify those periods during the year when certain revenues, such as property taxes, are received and when expenditures will exceed revenues. Such cash flow cycles are part of the innate knowledge of the City's veteran staff, however other staff may not be as enlightened or experienced. A formal model that is consistently updated will provide documentation of future cash needs that may be accessed by other staff and management. An effective Cash Flow Model can be designed to utilize information contained in bank statements and investment portfolio reports. Most require input of monthly revenues and expenses and the recommended historical period included in the analysis should go back at least three years. More sophisticated models can be developed to categorize revenues and expenses to further refine the data, but even the less detailed programs will yield valuable information for projecting cash flow needs, as follows: ~ Core Portfolio: The minimum balance that the portfolio always maintains or the level at which the portfolio balance is never expected to fall below over long periods of time. ~ Liquidity Portfolio: Portion of the total portfolio needed to cover daily disbursements and predictable cash needs such as payroll. Banking Serviccs and Trcasury Management Rcview Pagc 5 I I I I I I I I I I I I I I I I I I I ~ Cushion Portfolio: Additional liquidity cushion that provides supplementary protection against unexpected cash needs and dependent on the Finance Director/Controller's comfort level with the historical cash flow data. The advantage of the tool is that the investment program can be more efficiently managed to ensure that securities are purchased that will mature when cash is needed rather than concentrated in continuously liquid and short-term positions because future needs are unknown. Provided that the model remains current and that any changes in forecast and monthly experience are input, the City should feel more confident in committing funds to longer-term positions, which will enhance the overall yield. To demonstrate the application of the tool to enhance yield, we collected bank balance reports for the City's Operating Funds (General, Special Revenue, TLBD Special Assessment, Oak Forest Special Assessment, Water and Sewer), Capital Funds and Debt Service Funds assets between October 2000 and July 2001, as depicted in the chart below. For the periOd under review the City's Operating Funds portfolio had an average maturity of one day. This finding emphasizes the fact that the investment program has been kept highly liquid during all stages of the fiscal years. While a highly liquid position would be appropriate during the low points of the cash positions that exist during the August through November cycle, liquidity should not be as much of an issue during the December through May cycle when revenues are peaking. If the cash flow forecast data is utilized to develop portfolio strategy, some portion of the revenues received in December should be extended and invested to mature in August. The historical spreads between overnight funds and nine-month securities average 52 basis points. Therefore, the City should expect to receive approximately 0.52% in additional yield by extending some portion of their portfolio during peak revenue periods. By constructing and utilizing cash forecasts for the City's reserve and capital improvements funds, similar if not more attractive investment strategies could be implemented for the longer-term fund portfolios. The second consideration for developing effective forecasts involves the budgeting process for capital and special projects. The City currently has not requested for regular access to critical project information from construction managers that would allow the organization to structure portfolios that efficiently cover draw schedules. Upon the implementation of any construction project, the project manager should provide the finance staff with draws projections so that the initial portfoliO can be designed to cover the cash needs. While structuring the portfolios using the information in the initial stages of the construction project, the finance staff should ensure that adequate liquid reserves are built in to protect against unanticipated cash needs. Generally, there should be at least five- to ten-percent of the project's funding in investments that will mature within three months. As the project commences, the Finance Director/Controller and the Project Manager should continue to communicate so that deviations from the initial projections can be input into the model. The City should find that project budgets and the resulting investment revenues would be enhanced through more effective investment strategies while the funds are available. Banking Services and Treasury Management Rcview Page 6 I I I The cash management program is an integral component of any financial operation. Increasing investment earnings on revenues can help to offset costs or stretch the budget to pay for additional staff. However, optimizing investment returns within the general parameters of preserving principal and providing liquidity first can prove to be challenging. Two elements of the cash management program vital to its success are effective cash flow forecasting and investment selection. The City must recognize the importance of ongoing cash flow management and prudent investment decisions in order to optimize investment returns. I I A review of the City's cash management program focused on the City's historical investment balances to identify past and future cash flow needs. The City's investment practices were also evaluated. Preliminary conclusions include the following: I I I I I . During fiscal year 2000-2001, the City maintained a "core" balance of approximately $18 million between the Operating, Capital and Debt Service Funds invested in an overnight sweep investment at the bank. · The liquid funds and a portion of the core balance should be shifted to the State Board of Administration's Local Government Trust Fund (SBA) and the balance should be invested in longer-term investments between 1-3 years. · The City should only keep committed working capital in the overnight investment at the bank. I . The City earned at a rate that is below a market rate of return for longer-term investments in fiscal year 2000-2001 . I I . Diversifying the City's investment portfolio with investments could potentially enhance investment earnings by roughly $80,000 - $120,000 annually. Based on interest rates prior to September 11, 2001. City of Winter Springs--AII Accounts Analysis of Core Portfolio I I I I 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 I I C> C> ~ c; C'-' C'-' C'-' CO? CO? <;> <;> <;> ~ <;> <;> ~ <;> g <> Co "" U Co g <> Co "" <1> :> <1> <1> :> <C c::> <C <C c::> <C <C c::> <C <C o Historical Short-term Portfolio . Historical Core o Projected Short-term Portfolio o Projected Core Hanking Services and Treasury Management Review Page 7 I I The following graphs represents the cash balances for the Water and Sewer and Capital Funds. which were invested in the Bank of America in an overnight investment between October 2000 and September 2001. I I I 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 I I I I I I I I I I 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 I I I I City of Winter Springs--Water and Sewer Analysis of Core Portfolio <=> '9 "" => "'" <=> <=> <> '" <=> "" ~ c.. "'" "" '9 g> "'" CO'> ~ c.. "'" "" <=> <> '" <=> CO'> '9 g> "'" 9 "" => "'" 9 ~ '" <=> ~ c.. "'" o Historical Short-term Portfolio o Projected Short-term Portfolio II Historical Core o Projected Core City of Winter Springs--Capital Analysis of Core Portfolio <=> <=> .:" => <C <=> <=> <> '" Cl "" ~ c. <C CO'> ~ c.. <C "" <=> .:" => <C "" <=> <> '" <=> <"> '9 0> => <C ~ c. "'" 9 0> => "'" c; <> '" Cl o Historical Short-term Portfolio o Projected Short-term Portfolio II Historical Core o Projected Core Banking Scrviccs and Trcasury Managemcnt Rcvicw Pagc 8 I I Cash Flow Forecastina Cash flow forecasting is a critical step in the investment planning process. The primary objectives of cash flow forecasting include: I I · Ensuring funds are available to meet expenses . Maintaining adequate funding for unanticipated expenses I · Identifying future funding requirements · Projecting changes in fund balances I I I I I I . Projecting interest earnings · Optimizing investment earnings to better manage costs Cash flow forecasting can fall in one of two categories, micro-level or short-term cash flow forecasting and macro-level or long-term cash flow forecasting. Short-term cash flow forecasting typically involves a detailed analysis of revenues and expenditures on a periodic basis (e.g., daily, weekly, biweekly or monthly) for the current fiscal year or for a rolling twelve-month period. This detailed analytic approach would enable the City to more closely match assets with immediate and short-term cash needs as well as assist in future budget preparation. Long-term cash flow forecasting focuses on changes in the overall size of the operating fund over a longer time frame, typically two to five-years. The purpose of this analysis is to identify an allocation between funds required for short-term cash needs and funds that could be invested longer-term to potentially generate higher rates of return. I I I I I I Developing a useful short-term cash flow model does not need to be a complicated exercise. Past results are typically the best sources of information to project future funding needs. One approach the City can use is to compute the average revenues and expenditures for each period over recent fiscal years and then adjust these averages on a percentage basis by the expected increase (or decrease) in grants, revenues and expenditures. A second approach is to start with the results of a fiscal year the City believes is indicative of future expectations and adjust these results for expected increases or decreases in grants, revenues and expenditures. One-time cash flow requirements from prior fiscal years may need to be excluded from the forecast since these disbursements could skew projections. The City can also use a simplified approach to assessing cash flow requirements from a longer-term perspective. The most basic methodology is to simply chart the average balance or month-end balance of the operating fund over a two to five-year horizon. This approach will provide the City with the ability to identify the fund's "core" balance. The "core" balance represents the minimum balance of funds the City has maintained during the historical period. This balance often represents funds that could be invested more aggressively to potentially enhance interest earnings. I I Banking Services and Treasury Management Review Page 9 I I I I Recommendation 2: An Investment Strategy should be developed and implemented for each fund. I The City's investment program appears to be functioning without a clear investment strategy objective. Objectives need to be clearly stated and reviewed by an investment committee or the Finance Director. Developing an investment strategy that includes expenditure requirements defines the ultimate goals of each fund and creates a more disciplined investment program. I I I I Recent bank reports on the Operating, Capital and the Debt Service funds indicate that the cash were concentrated in an overnight investment. Considering the size and fund objectives, such a short-term duration will generally constrain earnings and may have cost the City significant income over the past years. Investors can usually expect to receive higher earnings rates as they extend maturities out along the yield curve if the curve is upward slopping. The critical questions to consider are how much of the portfolio can be extended and how far out on the curve is the investor comfortable to reach. With a portfolio the size of the City's and considering that all funds will not be expended during the short-term, it would be advisable to determine the answers to those two questions and take action to structure a longer-term duration component. I In the past, the City has been constrained to extend maturities due to the lack of revenue and expenditure forecasts. A Cash Flow Forecast is a basic tool for the finance personnel to utilize when portfolio strategies are developed to enhance overall returns. Without such a critical tool, the City is forced to embrace an ultra-conservative duration, so that it is not caught without funds on-hand to cover obligations. We recommend that a Cash Flow Forecasting Model be developed and implemented so that the investment portfolio can adopt a longer-term strategy. I I I I I I The investment strategy that has been practiced in the past has negatively impacted the City's returns. Unfortunately, the City did not exercised on some opportunities to buy longer-term positions, due to a lack of a cash-forecasting tool and the understanding of the core portion of the portfolio. Overall, this strategy tended to keep investments in the short-term sector because the yield curve was not attractively rewarding investors who bought longer-term positions. The problem with this strategy is that the City failed to lock in longer-term rates that, at the time of purchase, may have seemed unattractive yet, as the entire yield curve trended lower and lower, proved to be extremely rewarding over the long- term. I I I Banking Serviccs and Treasury Management Review Page 10 I I I I v I E L 0 I I I I I I I I I I I I I I I HISTORICAL YIELD CURVE 8.00 .~. -' -' - ~. -. -.' -. -. _.~. -. -. -. -. -'-' -. -. -. -' -. -. -. -. -' -.-. -. -. -' -. -. -. _._~ : . : . . :~.-I: . . . . . . ';" . . . . . . . - . . . ":" . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . - . . . : . .: . ; . l. . ~ . . . _ . _ .:. . . . . . . . . . . . .:. . . . . . . . . . . . . . . _ . . . . _ . . . . . . . _ . . . _ _ . . . . . . . . . . . . . . . . ; . : : ,::: : : . . ~#... . . ~ - .~ - . ~ . ~ . . - - . . . ~ . . . . . . . . . . . .;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . - . . . . . . . . . . . . . . . ~ . .,' ... . . ;,,';. .:..;...... .:........... _.:. ----. ..-.... ----...... -....... ..., (..:.~ : : )J h-:::;~... .1 I................................................... 7'.=r.o ".00 6.30 6.00 ~.~o 5.00 . . . . . !'.I:I : . : . : I: : : : : : : : : : : I : . . . : : : : : . : : : : . : . : . : : : : . . . : : . : : : : . : : : . : : : . . . - - - ::1 ~: ; ; ; . ; -3 3 6 1 2 5 10 30 Source:Bloomberg The graph depicts the decline in interest rates from the period of early 1995 until September 1999. Interest rates declined significantly between 1995 and early 1999. During that period, the yield curve remained relatively flat with investors not able to pick up significant yield for longer maturities at the point of purchase. However, as the change in the curve illustrates, by selecting to purchase a five-year security in 1995 rather than investing only in shorter-term positions, the investor would have locked in a rate that proved to be attractive over the long-term. The City's old investment policy (prior to September 10, 2001) was not comprehensive and did not have a defined investment strategy, which has resulted in a lopsided portfolio structure. Investments are concentrated in short-term positions, which are generally used for the investment of liquidity portions of a portfolio. They are short-term positions that are not significantly impacted during their holding period by changes in the interest rate environment. While this has precluded the need to reflect market value changes it has also prevented opportunities to enhance return and portfolio quality by including more U.S. Treasury, Agency securities. Not only would U.S. Treasury/Agency securities enhance portfolio quality, these securities also provide opportunities to trade or liquidate should unexpected cash need arise. Another strategy concern involves the lack of competition in the execution of investments. The current procedure of just using the Bank of America's interest on checking without receiving competitive bids/offers may have prevented the City from achieving the best rate. We propose that the City develop a procedure for competitive bids and for the collection and retainage of support documentation for each transaction. For term investments that are provided to the City by their financial institutions, the rate has historically been set to float off of the Federal Funds Rate. The City should explore all investment alternatives and the rates available before committing each investment. Banking Services and Treasury Management Review Page 11 I I I 'I I I I I I I I I I I I I I. I Recommendation 3: Implement the Investment Policy The new Investment Policy needs to be implemented to protect against risk. It has been written and the City Commission formally approved the resulting document. The current formal policy does provide some minimal guidelines and restrictions designed to protect the City's assets. However, it is imperative that a program of such importance to the organization be conducted according to standards deemed appropriate by the City Commission. By formally establishing the City's tolerance for risk and embracing reasonable portfolio limitations through the adoption of comprehensive Investment Policies, the City's leaders and management staff will begin to more fully protect investment assets and improve interest earnings. The final investment policy is located in the Exhibit section. The following recommendations represent specific changes that PFM suggested to be incorporated into the Investment Policy: . The Investment Policy requires adequate diversification parameters. Positions should be limited according to security type and issuer to minimize the risk of concentration of assets. The objective of diversification language is to achieve a balanced portfolio that will not be subjected to extreme sector or issuer risk exposures. . The Policy establishes maturity limitations or target duration objectives for the City's portfolios. Establishing maturity limitations should be a function of the City's assessment of the portfolio's risk tolerance levels. By allowing a portion of the portfolio to be invested in longer-term securities, the City should achieve a higher rate of return on those assets. The risk of extending maturities, however is that those positions will be subjected to market value volatility and may experience market losses during certain interest rate environments. By setting reasonable limitations on maturity in the Policy, the City will formalize how much duration risk will be allowed in the portfolio. . Term positions, such as Repurchase Agreements, should be limited to a strictly controlled and monitored group of providers. It is important to ensure that the firms that the City utilizes to provide such products remain financially viable. The Investment Policy stipulates that Repurchase Agreements only be executed with primary dealers, well capitalized financial institutions and/or providers with certain credit ratings. Additionally, all Repurchase Agreements shall utilize the Public Securities Association (PSA) Master Repurchase Agreement amended to describe collateral that is acceptable to the City. Currently, the City does not have a PSA agreement in place with Bank of America for the overnight sweep investment. However, the City does have an executed modified version of the PSA agreement in place, as provided by the bank. I Banking Services and Treasury Managemcnt Review Page 12 I I . The Policy includes a provision that requires all investments to be executed in a competitive bid process or through some other means of proving fair value, such as a survey of alternative rates available in the market. The process should be documented and the results should be retained to support the execution. This is particularly critical when executing trades on behalf of bond proceeds. Documentation of a competitive process provides evidence that a fair market price was achieved. I I I I I . The Policy does not define the specific investment strategy that will be utilized by each fund, including bond proceeds, operating funds and reserve funds. However, strategies should be a component of the operating policies for the Finance Director and adherence to the strategy should be monitored frequently. . The Policy requires a more formal review process for the investment program. At least annually, the Finance Director should review the performance; consider current strategy and monitor portfolio compliance with portfolio guidelines. I . The Policy requires that quarterly investment reports should be prepared and provided to City Manager. Additionally, a statement that the investment portfolio is in compliance with the City's Investment Policy should be provided with each report. Any situations of non-compliance should be fully explained. I I I I I I I I . The Policy establishes a selection process for approving and reviewing all broker/dealers and financial institutions used by the City to execute investment trades. This process may include the review of audited financial statements, credit rating restrictions, reference checks and any other information deemed appropriate by City management. . The Policy establishes an appropriate benchmark objective like the State Board of Administration (SBA). The SBA is generally used in investment reports as an indication of short-term interest rate trends over the reporting period, but for portfolios that invest their funds beyond the six-month sector, which should be the case for the City, this benchmark does not provide an appropriate target. The City should select a benchmark that is consistent with portfolio objectives and strategies. I I I Banking Services and Treasury Managemcnt Revicw Page 13 I I Recommendation 4: The Cash and Investment program needs to implement operational procedures and cross-training strategies to ensure proper staffing. I I Without written and documented investment operational procedures, the City is exposing the cash and investment program to numerous risks. Procedures serve to more fully define roles and oversight responsibilities of the finance staff and to establish mechanisms of internal control. Further, the lack of documentation creates a void in the flow of investment activity and information flow, should critical employees be away from the office. I I I I During PFM's review of the City's cash and investment program, we were able to find evidence of the existence of operational procedures for investment management tasks. However, the lack of detailed written procedures places the City at risk should key employees leave the organization or be absent for an extended period of time. At present, the knowledge of most cash and investment operational processes is vested in one individual. The lack of comprehensive investment procedures and adequate control guidelines additionally expose the organization to potential risks of fraud through abuse of power. Staff responsibilities should be distributed and procedures implemented to impose a formal review process for critical activities in order to mitigate such concerns. I I '1 I I The development of detailed procedures for the collection of City revenues should be considered for all cashiering functions. Cash Handling Procedures should place an emphasis on effective and efficient collection of revenues, methods to ensure that bank deposits are made as quickly and securely as possible, that appropriate oversight of cashiers is provided and that cashier personnel are properly trained, monitored and evaluated. Performance should be periodically reviewed by management and cashier personnel to ensure that cash handling processes continually remain compliant with the procedures. Without formal procedures and review, certain City revenues are at risk due to mishandling of funds or fraudulent activity. I PFM developed, for the City, an Internal Controls and Operational Procedures Manual for Investments, as provided in the Exhibit section, and the controls should be implemented in order to achieve adequate internal controls and appropriate oversight of critical activities. Currently, the daily investment-related activities are performed primarily by a single individual who executes, processes and enters transactions into the accounting system. If more formal oversight and approval processes exist to address internal control issues, they are not currently defined and documented. I I Once procedures have been developed, the City should implement a cross-training program for all finance personnel to ensure that there exists trained and knowledgeable back up staffing for all activities. Frequent opportunities to perform the functions for which personnel have been cross-trained should be provided to ensure that the knowledge remains current. I I I' Banking Services and Treasury Management Review Page 14 I I I I I I I I I I I I I I I I I I I Recommendation 5: Restructure bank accounts and services and depository relationships need to be re-formalized. The banking services profile of the City has been analyzed to ensure that the City is making the most effective and efficient use of providers and services. The City utilizes only one-bank provider with 45 separate bank accounts, which seriously fragments the cash management program. Additionally, it appears the bank is applying a standard pricing schedule to the overnight sweep investment. These situations lead to inefficient cash management, accounting practices and investment rates that should all be addressed. During the review of the cash management program, we took special notice of the fact that the City does use a single primary bank for its depository accounts, however the City has an extraordinarily high number of bank accounts. Such a structure tends to fragment cash and decrease the effective management and investment of available' balances. Within the statement period that we used for an account sampling, it was noted that average daily cash balances in excess of $20 million were held overnight in the City's checking accounts. The bank pays interest on accounts based on the Federal Funds rate less 50 basis points. Usually, public entities have an overnight investment rate equal to the Federal Funds rate less 20-10 basis points. All excess funds should be swept into a single overnight repurchase agreement account or a money market fund and the City should compare the overnight rate quoted by the bank to other overnight investment alternatives. Moreover, the overnight sweep balances should be reduced to only the funds needed for current the payables and payroll requirements. Additionally, the City should open an account at the Florida State Board of Administration Local Government Surplus Trust Fund ("SBA") for the City's short-term funds. Short-term is usually defined as funds utilized within a fiscal year or earlier. The SBA is a state operated pooled fund (money market) for all local governments in Florida. This pool is an acceptable investment vehicle for the City's liquid funds and historically the SBA has outperformed overnight and money market investments offered by banks and investment firms. The chart below represents the City's average monthly bank rate at Bank of America and the SBA rates between October 2000 and September 2001. Historical monthly SBA rates are located in the Exhibit section. Bank Rate vs. SBA Rate '; ~ 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 \:)\:) ...: OC; -+- Ban k Rate --- SB1\ Rate ... VJ ~ 100 ~ ... Cl .... \:)\:) c: <;F \:), ~C'~ 'C \:), . \:), ~ -c: ~~ ':~ Month \:), \:), ~vcf; Oc;"': Banking Services and Treasury Management Review Page 15 I, I By selecting a depository account structure with Zero Balance Accounts (ZBA) and utilizing those accounts for all the account payables and payroll funds the City would be able to combine the account balances into a master account. The pooled funds in the master account can purchase more effective overnight investment positions that will enhance revenues. The City's numerous checking accounts located at the main depository bank should be eliminated, which would help to reduce the number of bank statements to be reconciled and improve on cash flow management. I I I I To assess the banking services fees' reasonableness, we gathered the account analysis information for each of bank accounts that the City utilized and reviewed one year's worth of fees. In reviewing the banking services relationship of the City, we performed an analysis of the banking service usage, fee structures and earnings rates for all bank accounts for October 2000 thru September 2001. The results indicate that generally the current non-institutional fee structure is in line with comparable organizations both in size and volume of transactions. However, it is recommended that the City renegotiate a few of the current banking service fees and execute new service contracts with Bank of America, as listed below, including the overnight sweep investment rate. PFM will provide the City with bank pricing comparables to help facilitate the service price negotiations. The service fees in questions are as follows: I I I . Accountant Maintenance . Branch Deposits · ZBA Master Accounts · ZBA Service-Sub I I During the past year the City's average monthly banking fees were approximately $3,000 for an annual total of $36,000. I I I I I Finally, the Exhibit section contains a bank account chart that depicts the proposed bank account structure. The objective of the proposed bank account structure is to use the ZBA account structure to increase the effectiveness of the current bank services and to pool the City's funds into one master bank account. This bank account structure should be supported by a pool function of the City's new general ledger accounting system. The City would maintain two other bank accounts for account payables and payroll with the excess monies swept nightly into an overnight investment. PFM recommends the adoption of the proposed bank account structure and the bank services noted in the chart, as shown in the Exhibit section. It should be noted that the various accounts held at trustees for the City's outstanding debt issues would only be affected to the point that the bond proceeds have been exhausted. I I I Banking Services and Treasury Management Review Page 16 I - I Conclusion I I I I I I I I I' I I, I I I II I I We recommend that the City place a priority on addressing the deficiencies that currently exist in the Cash and Investment Program. The lack of a comprehensive bank account and services structure and procedures, combined with an un-defined investment strategy may have cost the City earnings opportunities over the past several years. More effective use of investment funds should result in the realization of increased interest revenues while also preserving the safety through conservative portfolio structuring. Comprehensive policies and reasoned strategy guidelines will provide the finance staff with an improved discipline for achieving defined goals. Competition needs to be introduced into the investment bidding and the new banking services should be formalized to ensure that the City is achieving the best pricing from the market. The proposed bank account structure should be adopted, which will help to improve the City's ability to earn more interest over time. Oversight of the program through periodic review should be implemented to protect the organization against mismanagement of funds, whether inadvertent or intentional. The City's reliance upon certain staff that are not equipped with the necessary resources and not provided with the necessary support staff places the organization at a disadvantage. And finally, since the City Commission has formally adopted the Investment Policy the elements of the policy should be implemented and assets should be periodically reviewed to ensure compliance with the City's objectives. The table below is a summary of recommendations formatted into tasks and short-term investments and the bank account structure should take priority. Banking Services and Treasury Management Review Page 17 I I I. I Summary of Recommendations I I Topic Recommendation Accounting Structure Implement a pool account structure for the City's funds, which is a feature of the new accounting system Utilize the General Ledger for all aspects accounting and record keeping Inter-fund transfers should be completed by journal entries not by check or bank transfer Bank Account Structure Close over 34 unnecessary bank and trust accounts Adopt the proposed bank account. structure and services as provided in the Exhibit section Negotiate with the bank a new public funds overnight investment rate Enter into a formal banking services contract with the current bank for the new services The contract should have a list of the individual fees for each of the services Document the agreement for the bank's new overnight investment rate Banking Services NeQotiate bankinQ services fees as noted Install a treasury management work station that provides the City with the ability to execute wire transfers, stop pays, bank account transfers on line directly with the bank Utilizes full bank account reconciliation services for all of the City's checks, including positive pay and imaging cleared checks on CD-ROM Short-Term Investments Open an account at the Florida State Board of Administration (SBA), which is a state pool money market Transfer cash balances to the SBA Monitor short-term interest rates for opportunities Evaluate comparable secondary market federal aaency securities vs. mutual funds Internal Controls Implement the Internal Controls and Procedures Manual Require secondary authorization on all wire transfers perlormed on-line Fully segregate cash reconciliation from trade execution Segregate custody reconciliation from trade execution Reauire dual siQn-off on settlement instructions Long-Term Investments Develop a portfolio for the Core Balance of the City's Funds Investment Analysis Implement an active investment management strategy Investment ReportinQ Compare perlormance to benchmarks Annual Investment Provide the City Commission with an annual Report investment report I I I I I I I I I I I I I Banking Services and Treasury Management Review Page 18 I I' I I I I I I I I I I I I I I I I I Exhibits Banking Services and Treasury Management Review Page 19 - - - - 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - - - - - - - - - - - - City of Winter Springs--AII Accounts Historical Analysis of Core Portfolio o o c" '" <( o o 6- Q) en o o 1'; o o o ~ Z 8 u Q) o o cO ctl -, 0 0 0 0 9 9 .0 ~ ~ >. c: 'S Q) ctl a. ctl '" LL ::;; <( ::;; -, -, III Historical Core o Historical Short-term Portfolio City of Winter Springs-All Accounts Analysis of Core Portfolio o o c" '" <( o <;> :6 o ~ ~ a. <( o ~ <( '" o c" '" <( ~ u Q) o o c" '" <( M o ~ <( o u Q) o M o c" '" <( o Historical Short-term Portfolio o Projected Short-term Portfolio II Historical Core ~ Projected Core Nole: Prr~iecled cash flows are hased 011 the stalistica[lrellds of hislllric data. AC/lla[ cash flow pall ems //lay l'a/'y. - - - Page I - - - - 5.000,000 4,500,000 4,000.000 3,500,000 3,000,000 2,500,000 2,000,000 1.500,000 1,000,000 500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - - - - - - - - - - - - City of Winter Springs--General Fund Historical Analysis of Core Portfolio <:> <:> en ::> <I: <:> <:> 6- Q) CJ) o <:> 13 o <:> <:> :> o z <:> <:> <> Q) o c; c '" -.. c; .0 Q) LL c; ~ :;; c; >. '" :;; c; C ::> -.. 9 "S -.. ~ Q. <I: o Historical Short-term Portfolio ~ Historical Core City of Winter Springs-General Fund Analysis of Core Portfolio <:> <:> en ::> <I: o <:> <> Q) o CO) <:> en ::> <I: N o 15. <I: N <:> en ::> <I: 9 a. <( c; en ::> <I: ~ <> Q) o ~ a. <I: c; <> Q) o o Historical Short-term Portfolio o Projected Short-term Portfolio I!I Historical Core IS] Projected Core Note: Projected cash j10ws are based 011 the S/{ltistical trellds of historic data. Actual cash j10l1' patterns may vary. - - --~_._------, , - - Page 2 - - - - 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - - - - - - - - - - - - City of Winter Springs-- Special Revenue Fund Historical Analysis of Core Portfolio o o c" " <( o o 6. Q) en o o 13 o o o :> o z 8 o Q) o c; C <'Cl -, c; ;, Q) u. <;; (;j ::;; <;; c. <( c; :>. <'Cl ::;; c; c " -, <;; "S -, o Historical Short-term Portfolio ~ Historical Core City of Winter Springs-- Special Revenue Fund Analysis of Core Portfolio o o c" " <( ~ u Q) o ~ c. <( N o c" " <( <;; c. <( c; c" " <( ~ u Q) o C') o ii <( c; o Q) o C') o c" " <( o Historical Short-term Portfolio o Projected Short-term Portfolio ~ Historical Core ~ Projected Core Note: Projected cashjlO\vs are based 0/1 tire statistical tre/lds of historic data. Actual cash jlow patterns may vary. - - - Page 3 - - - - 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - - - - - - - - - - - - City of Winter Springs- TLBD Special Assesment Historical Analysis of Core Portfolio o o 0, ::> ..: o o t; o o o 6- Ql en 8 :> o z ~ <> Ql Cl c; C:: '" . c; .a Ql u... c; :i; :::;: <;; c.. ..: c; :>.. '" :::;: c; C:: ::> . <;; "5 . o Historical Short-term Portfolio II Historical Core City of Winter Springs- TLBD Special Assesment Analysis of Core Portfolio o o 0, ::> ..: ~ <> Ql Cl ~ <5. ..: ~ 0, ::> ..: c; <5. ..: c; 0, ::> ..: Sl <> Ql Cl (0) 9 c.. ..: c; .:, Ql Cl (0) o 0, ::> ..: o Historical Short-term Portfolio o Projected Short-term Portfolio II Historical Core ~ Projected Core Note: Projected cash j101VS are based 01/ the statistical trends of historic data. Actual cash j10w pattems.may vary. - - - ---~-I I I I I I Page 4 - - - - .- - - - - - - - - - - - 800,000 City of Winter Springs--Oak Forrest Special Assesment Historical Analysis of Core Portfolio 700,000 600,000 500,000 400,000 300,000 200,000 100,000 o o c" ::> <( o o 6. '" en o o U o 8 :>- o z o o b '" Q c; C: '" -, c; <;; c; c; c; <;; .6 (ij ~ :>. C: "S Q) Q. '" ::> u.. ::2 <( ::2 -, -, II Historical Core o Historical Short-term Portfolio City of Winter Springs-Oak Forrest Special Assesment Analysis of Core Portfolio 800,000 700,000 600,000 500,000 400.000 300,000 200,000 100,000 0 :5 0 c" b ::> Q) <( 0 C\l 9 Ci <( <;; Q. <( ~ c" ::> <( c; c" ::> <( ~ b '" o c; b Q) Q (0) o l3. <( (0) o c" ::> <( o Historical Short-term Portfolio o Projected Short-term Portfolio II Historical Core EI Projected Core Note: Projected cash j701Vs lire based 01/ the statisticaltrelllls of historic daltl. Actual cash j701V plltterns may vary. - - - Page 5 - - - - 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - - - - - - - - - - - - City of Winter Springs--Water and Sewer Historical Analysis of Core Portfolio <:> 9 C> ~ <<: <:> <:> 6. '" en <:> <:> U o 8 :> o :z 8 .:, '" o c; C: <tl ..., c; ,;, '" lL c; ~ ::;: c; :5. <<: c; >. <tl ::;: c; C: ~ ..., 9 "S ..., o Historical Short-term Portfolio . Historical Core City of Winter Springs--Water and Sewer Analysis of Core Portfolio <:> <:> en ~ <<: 8 .:, '" o C\J <:> :5. <<: c; :5. <<: C\J <:> en ~ <<: c; en ~ <<: ~ .:, '" o c; .:, '" o C") <:> ~ C") <:> en ~ <<: o Historical Short-term Portfolio o Projected Short-tenn Portfolio II Historical Core IS] Projected Core NO/e: Projected cash flows are based 01/ the statisticaltrel/ds lIf hisTlIric data. Acll/al cashjlow [Jallerm may vary. - - - Page 6 - - - - 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1.000,000 9,000,000 8.000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - - - - - - - - - - - - City of Winter Springs--Capital Historical Analysis of Core Portfolio C) C) C, :> < C) C) 6. Q) en o o t; o C) C) > o Z 8 u Q) Cl C5 C: '" -.. C5 .0 Q) u. C5 ~ :::;: C5 i5. < C5 ;.. '" :::;: C5 C: :> -.. 9 "S -.. o Historical Short-term Portfolio II Historical Core City of Winter Springs--Capital Analysis of Core Portfolio C) C) C, :> < o o U Q) Cl C\J C) i5. < ;; i5. < C\J C) C, :> < ~ u Q) Cl C5 C, :> < C') C) i5. < 9 u Q) Cl C') C) C, :> < o Historical Short-term Portfolio o Projected Short-term Portfolio II Historical Core liiI Projected Core Note: Projected cashjlOlvs are based 011 ,lIe statisticaltrel/ds of historic data. Actual cash jlow paller/LV II/ay vary. - - - Page 7 - - - - 4,000.000 3.500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000.000 1,500,000 1,000,000 500,000 - - - - - - - - - - - - City of Winter Springs--Debt Service Historical Analysis of Core Portfolio 500,000 o o c" ::> <( o o 6. '" en o o t; o o o :> o z o 9 o '" o o C: '" -, o .0 '" u. o :i; :::;: o <5- <( o :>. '" :::;: o C: ::> -, 9 s -, o Historical Short-term Portfolio . Historical Core City of Winter Springs--Debt Service Analysis of Core Portfolio o o c" ::> <( 8 .:, '" o SJ 0.. <( o <5- <( N o c" ::> <( o c" ::> <( N o .:, '" o C') o <5- <( o .:, '" o C') o c" ::> <( o Historical Short-term Portfolio o Projected Short-term Portfolio . Historical Core IS! Projected Core Note: Projected cash flows are based Oil the statistical trel/ds of historic data. Actual cash jlolV I'atlems may mry. - - - Page 8 ------------------- City of Winter Springs Bank Account and Cash Summary October-OO BALANCE INTEREST BANK NAME BANK AlC # 10/31/2000 RATE GENERAL FUND BofA General Fund Account ((ZBA wI depository) 0030-6496-2233 $ 0 BofA Payroll Account (ZBA wI despository) 0030-6496-2301 $ 0 BofA Depository Account 0030-6496-2220 $ 417,643.37 6.18 BofA Escrow Account 0034-4640-5949 $ 102,970.71 4.5 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,084,081.15 6.32 $ 2,604,695.23 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 4,897.72 1.02 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,026.57 3 BofA Stormwater Account 0034-4768-4413 $ 164,688.51 4.5 BofA Police Public Safety 0034-4768-4390 $ 220,719.81 4.5 BofA Fire Public Safety 0034-4768-4400 $ 307,535.94 4.5 BofA Medical Transport Service 0034-4768-4426 $ 473,219.66 4.5 BofA Public Service Tax 0034-4640-5965 $ 122,520.13 4.49 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 768.35 1.02 BofA Police Education Fund 0030-6496-2275 $ 14,761.32 0.25 BofA Transportation Improvement Fund 0030-6496-2343 $ 97,642.08 0.25 BofA Excise Tax Fund 0030-6496-2288 $ 130,651.70 0 BofA Transportation Impact Fees-Repo 0028-3166-9568 $ 445,531.50 6.0251 Stiffel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 1,349,167.84 3.9 BofA Transportation Impact Fees 0028-3166-9568 $ 2,673.00 0 $ 3,362,804.13 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 348,819.59 4.5 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 269,321.96 5.85 retro interest $ 618,141.55 OAK FOREST SPECIAL ASSESSMENT Oct 2000 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary October-OO BALANCE INTEREST BANK NAME BANK AlC # 10/31/2000 RATE BofA Oak Forest Capital 3445195182 $ 667,471.44 6.79 retro interest BofA Oak Forest Maintenance 3445195179 $ (17.33) 0 BofA Oak Forest Debt Service 3445195195 $ (19.16) 0 $ 667,434.95 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 49,382.00 0 BofA Water/Sewer system W. Gen. Ops - Repo 0012-8700-2433 $ 3,334,698.06 5.7416 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 2,056.00 0 BofA Water/Sewer w. Trust Fund - Repo 0012-8700-2548 $ 1,086,122.48 5.7416 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 292,199.39 4.5 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 292,199.43 4.5 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 203,371.36 4.5 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 19,437.62 2 $ 5,279,466.34 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 4,038.10 0 Regions 1997 Utility Construction 67-9002-7174 $ 966,986.37 6.3 AMBAC 1999 Construction Fund 9908101074 $ 2,660,656.32 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 11,041.00 6 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,778,797.30 5.85 retro interest $ 7,421,519.09 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 46,698.09 6 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,138,248.05 8.48 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 359,700.95 4.14 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ Oct 2000 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary October-OO BALANCE INTEREST BANK NAME BANK AlC # 10/31/2000 RATE BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 44,092.09 5.86 BNY 1993 GF Debt Service Clearing Account 460283 $ 0 1 st Union 1997 GF Custody Agreement 4074862570 $ 105,216.27 6.2 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 36,365.47 O. Regions 1997 Utility Subordinate debt service 67 -0600-8462 $ 0 Regions 1997 Utility Subordinate debt service Clearing account 67-0990-0524 $ 0 Suntrust 1999 G F Debt Service Escrow 5975152 $ 8,823.95 invst Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 576.87 0 BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 82,399.80 5.85 retro interest BofA 2000 Utility Debt Service Reserve Ale 0034-4526-0266 $ 663,966.06 5.85 retro interest $ 2,486,087.60 GENERAL FUND $ 2,604,695.23 SPECIAL REVENUE FUNDS $ 3,362,804.13 TLBD SPECIAL ASSESSMENT $ 618,141.55 OAK FOREST SPECIAL ASSESSMENT $ 667,434.95 WATER AND SEWER $ 5,279,466.34 CAPITAL $ 7,421,519.09 DEBT SERVICE $ 2,486,087.60 $ 22,440,148.89 Oct 2000 Page3 ------------------- City of Winter Springs Bank Account and Cash Summary November-OO BALANCE INTEREST BANK NAME BANK AlC # 11/30/2000 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 1,446,801.00 6.18 BofA Escrow Account 0034-4640-5949 $ 103,342.92 4.5 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,113,859.01 6.67 $ 3,664,002.93 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 4,901.77 1.01 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,094.57 3 BofA Stormwater Account 0034-4768-4413 $ 154,528.64 4.5 BofA Police Public Safety 0034-4768-4390 $ 224,543.91 4.5 BofA Fire Public Safety 0034-4768-4400 $ 311,527.95 4.5 BofA Medical Transport Service 0034-4768-4426 $ 488,990.95 4.5 BofA Public Service Tax 0034-4640-5965 $ 279,136.17 4.27 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 59.00 1.04 BofA Police Education Fund 0030-6496-2275 $ 31,919.49 0.25 BofA Transportation Improvement Fund 0030-6496-2343 $ 96,926.46 0.25 BofA Excise Tax Fund 0030-6496-2288 $ 243,142.70 0 BofA Transportation Impact Fees-Repo 0028-3166-9568 $ 461,229.45 6.028 Stiffel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 1,349,167.84 3.9 BofA Transportation Impact Fees 0028-3166-9568 $ 1,450.00 0 $ 3,675,618.90 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 350,080.49 4.5 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 269,377.15 5.68 retro interest $ 619,457.64 OAK FOREST SPECIAL ASSESSMENT Nov-OO Page1 ------------------- City of Winter Springs Bank Account and Cash Summary November-DO BALANCE INTEREST BANK NAME BANK AlC # 11/30/2000 RATE BofA Oak Forest Capital 3445195182 $ 630,563.92 5.34 retro interest BofA Oak Forest Maintenance 3445195179 $ 13,545.61 0 BofA Oak Forest Debt Service 3445195195 $ 0 $ 644,109.53 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 54,626.00 0 BofA Water/Sewer system W. Gen. Ops - Repo 0012-8700-2433 $ 3,595,812.51 5.8073 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,741.00 0 BofA Water/Sewer w. Trust Fund - Repo 0012-8700-2548 $ 1,106,485.15 5.8073 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 293,255.62 4.5 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 293,255.66 4.5 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 219,091.33 4.5 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 34,362.68 2.59 $ 5,598,629.95 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 4,032.85 0 Regions 1997 Utility Construction 67-9002-7174 $ 971,763.47 5.9 AMBAC 1999 Construction Fund 9908101074 $ 2,673,468.93 5.7 Suntrust 1999 Construction Fund 56-02 -136-6797 551 $ 11,097.00 6 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,778,571.64 5.68 retro interest $ 7,438,933.89 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 46,698.09 6 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 5.91 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 407,266.86 5.92 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 Nov-OO Page2 ------------------- City of Winter Springs Bank Account and Cash Summary November-DO BALANCE INTEREST BANK NAME BANK AlC # 11/30/2000 RATE BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 44,160.76 5.92 BNY 1993 GF Debt Service Clearing Account 460283 $ 0 1st Union 1997 GF Custody Agreement 4074862570 $ 105,739.06 6.2 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 36,365.47 0 Regions 1997 Utility Subordinate debt service 67 -0600-8462 $ 0 Regions 1997 Utility Subordinate debt service Clearing account 67 -0990-0524 $ 0 Suntrust 1999 GF Debt Service Escrow 5975152 $ 42,185.01 invst Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 579.76 0 BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 20,334.46 5.68 retro interest BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 $ 691,104.88 5.68 retro interest $ 2,489,240.77 GENERAL FUND $ 3,664,002.93 SPECIAL REVENUE FUNDS $ 3,675,618.90 TLBD SPECIAL ASSESSMENT $ 619,457.64 OAK FOREST SPECIAL ASSESSMENT $ 644,109.53 WATER AND SEWER $ 5,598,629.95 CAPITAL $ 7,438,933.89 DEBT SERVICE $ 2,489,240.77 $ 24,129,993.61 Nov-OO Page3 ------------------- City of Winter Springs Bank Account and Cash Summary December-DO BALANCE INTEREST BANK NAME BANK AlC # 12/31/2000 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 2,186,039.63 6.18 BofA Escrow Account 0034-4640-5949 $ 103,728.93 4.5 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,118,221.63 6.65 $ 4,407,990.19 . SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 4,905.96 1.01 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,165.01 3 BofA Stormwater Account 0034-4768-4413 $ 155,105.84 4.5 BofA Police Public Safety 0034-4768-4390 $ 228,171.11 4.5 BofA Fire Public Safety 0034-4768-4400 $ 313,376.98 4.5 BofA Medical Transport Service 0034-4768-4426 $ 500,187.72 4.5 BofA Public Service Tax 0034-4640-5965 $ 332,191.14 4.5 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 131,402.47 4 BofA Police Education Fund 0030-6496-2275 $ 34,791.52 0.25 BofA Transportation Improvement Fund 0030-6496-2343 $ 138,542.66 0.25 BofA Excise Tax Fund 0030-6496-2288 $ 1.00 0 Stiffel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 1,351,249.51 3.9 BofA Transportation Impact Fees 0028-3166-9568 $ 472,421.22 0.58 $ 3,690,512.14 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 351,511.71 4.5 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 269,434.19 5.87 retro interest $ 620,945.90 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 568,951.57 6.1 retro interest Dec 2000 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary December-OO BALANCE INTEREST BANK NAME BANK AlC # 12/31/2000 RATE BofA Oak Forest Maintenance 3445195179 $ 19,530.40 6.1 retro interest BofA Oak Forest Debt Service 3445195195 $ 0 $ 588,481.97 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 3,817,156.35 0.58 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,128,596.41 0.58 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 294,351.00 4.5 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 294,351.04 4.5 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 219,909.69 4.5 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 34,448.83 3 $ 5,788,813.32 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 4,027.59 0 Regions 1997 Utility Construction 67-9002-7174 $ 976,389.75 5.7 AMBAC 1999 Construction Fund 9908101074 $ 2,428,701.12 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 11,152.00 6 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,780,371.96 5.87 retro interest $ 7,200,642.42 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 134,301.37 6 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 5.78 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 622,688.92 5.79 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 125,976.82 5.66 Dec 2000 Page2 -----------_._------ City of Winter Springs Bank Account and Cash Summary December-OO BANK NAME BANK AlC # BNY 1993 GF Debt Service Clearing Account 460283 1 st Union 1997 GF Custody Agreement 4074862570 1st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 Regions 1997 Utility Subordinate debt service 67 -0600-8462 Regions 1997 Utility Subordinate debt service Clearing account. 67 -0990-0524 Suntrust 1999 GF Debt Service Escrow 5975152 Suntrust 1999 GF Debt Service COI Custodian Account 5975153 BofA 2000 Utility Debt Service AlC 0034-4526-0279 BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAPITAL DEBT SERVICE Dec 2000 INTEREST RATE o $ 106,267.88 5.7 $ 58,830.81 0 $ $ $ $ 42,350.27 582.61 $ 20,338.77 $ 691,251.22 $ 2,897,395.09 $ 4,407,990.19 $ 3,690,512.14 $ 620,945.90 $ 588,481.97 $ 5,788,813.32 $ 7,200,642.42 $ 2,897,395.09 $ 25,194,781.03 o o invst o 5.87 retro interest 5.87 retro interest Page3 ------------------- City of Winter Springs Bank Account and Cash Summary January-01 BALANCE INTEREST BANK NAME BANK AlC # 1/31/2001 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 1,333,515.14 5.66 BofA Escrow Account 0034-4640-5949 $ 104,117.44 4.51 Stiftel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,132,032.62 6.62 $ 3,569,665.20 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 5,904.30 1.02 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,235.82 3.01 BofA Stormwater Account 0034-4768-4413 $ 155,685.49 4.51 BofA Police Public Safety 0034-4768-4390 $ 232,030.16 4.51 BofA Fire Public Safety 0034-4768-4400 $ 315,981.58 4.51 BofA Medical Transport Service 0034-4768-4426 $ 518,360.04 4.51 BofA Public Service Tax 0034-4640-5965 $ 402,534.98 4.51 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 131,894.64 4.51 BofA Police Education Fund 0030-6496-2275 $ 32,998.82 0.25 BofA Transportation Improvement Fund 0030-6496-2343 $ 135,457.25 0.25 BofA Excise Tax Fund 0030-6496-2288 $ 70,146.01 0 Stiftel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 1,362,652.18 3.15 BofA Transportation Impact Fees 0028-3166-9568 $ 473,377.43 5.65 $ 3,865,258.70 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 352,828.29 4.51 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 269,585.24 5.34 retro interest $ 622,413.53 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 533,822.12 4.9 retro interest Jan 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary January-01 BALANCE INTEREST BANK NAME BANK AlC # 1/31/2001 RATE SofA Oak Forest Maintenance 3445195179 $ 19,460.31 5.59 retro interest SofA Oak Forest Debt Service 3445195195 $ 0 $ 553,282.43 WATER AND SEWER SofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 4,220,141.09 5.65 SofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,151,583.88 5.65 SofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 295,453.49 4.51 SofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 295,453.53 4.51 SofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 220,733.36 4.51 SofA Water/Sewer Reservation charge 0034-4640-5729 $ 34,535.43 3.01 $ 6,217,900.78 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 4,022.92 0 Regions 1997 Utility Construction 67-9002-7174 $ 981,391.33 6.1 AMSAC 1999 Construction Fund 9908101074 $ 2,209,815.52 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 11,208.00 5.2 SofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,782,491.28 5.34 retro interest $ 6,988,929.05 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Sonds - custody ale 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Sonds - debt svc 56-02-136-6797512 $ 134,305.35 6 SNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 5.31 SNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 630,063.44 5.32 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 126,574.11 5.49 Jan 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary January-01 BANK NAME BANK AlC # BNY 1993 GF Debt Service Clearing Account 460283 1 st Union 1997 GF Custody Agreement 4074862570 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 Regions 1997 Utility Subordinate debt service 67-0600-8462 Regions 1997 Utility Subordinate debt service Clearing account 67-0990-0524 Suntrust 1999 GF Debt Service Escrow 5975152 Suntrust 1999 GF Debt Service COI Custodian Account 5975153 BofA 2000 Utility Debt Service AlC 0034-4526-0279 BotA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAPITAL DEBT SERVICE . Jan 01 BALANCE INTEREST 1/31/2001 RATE $ 0 $ 106,828.27 5.4 $ 58,830.81 0 $ 0 $ 0 $ 109,098.91 invst $ 585.42 0 $ 20,343.09 5.34 retro interest $ 691,397.99 5.34 retro interest $ 2,972,833.81 $ 3,569,665.20 $ 3,865,258.70 $ 622,413.53 $ 553,282.43 $ 6,217,900.78 $ 6,988,929.05 $ 2,972,833.81 $ 24,790,283.50 Page3 ------------------- City of Winter Springs Bank Account and Cash Summary February-01 BALANCE INTEREST BANK NAME BANK AlC # 2/28/2001 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 677,552.53 5.24 BofA Escrow Account 0034-4640-5949 $ 104,450.16 4.25 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,164,105.32 6.58 $ 2,946,108.01 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 7,721.57 1.01 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,299.93 3 BofA Stormwater Account 0034-4768-4413 $ 156,183.00 4.25 BofA Police Public Safety 0034-4768-4390 $ 236,879.39 4.25 BofA Fire Public Safety 0034-4768-4400 $ 318,966.66 4.25 BofA Medical Transport Service 0034-4768-4426 $ 532,841.12 4.25 BofA Public Service Tax 0034-4640-5965 $ 672,702.56 4.22 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 132,316.12 4.25 BofA Police Education Fund 0030-6496-2275 $ 30,689.91 0.25 BofA Transportation Improvement Fund 0030-6496-2343 $ 155,004.70 0.25 BofA Excise Tax Fund 0030-6496-2288 $ 70,146.01 0 Stiffel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 1,362,652.18 3.15 BofA Transportation Impact Fees 0028-3166-9568 $ 487,727.51 5.23 $ 4,192,130.66 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 354,031.89 4.25 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 270,640.98 5.23 $ 624,672.87 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 514,197.15 4.7 retro interest Feb 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary February-01 BALANCE INTEREST BANK NAME BANK AlC # 2/28/2001 RATE BofA Oak Forest Maintenance 3445195179 $ 19,889.68 4.7 retro interest BofA Oak Forest Debt Service 3445195195 $ 0 $ 534,086.83 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 4,379,064.51 5.22 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,168,666.75 5.23 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 296,397.64 4.25 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 296,397.68 4.25 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 221,438.74 4.25 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 34,613.84 3 $ 6,396,579.16 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 4,017.16 0 Regions 1997 Utility Construction 67-9002-7174 $ 986,228.83 4.7 AMBAC 1999 Construction Fund 9908101074 $ 2,220,218.51 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 11,261.00 4.9 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,797,304.13 5.23 $ 7,019,029.63 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 221,916.55 3.1 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 4.96 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 848,514.63 4.96 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 208,923.40 5.2 Feb 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary February-01 BANK NAME BANK AlC # BNY 1993 GF Debt Service Clearing Account 460283 1 st Union 1997 GF Custody Agreement 4074862570 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 Regions 1997 Utility Subordinate debt service 67-0600-8462 Regions 1997 Utility Subordinate debt service Clearing account 67 -0990-0524 Suntrust 1999 GF Debt Service Escrow 5975152 Suntrust 1999 GF Debt Service COI Custodian Account 5975153 BofA 2000 Utility Debt Service AlC 0034-4526-0279 BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAPITAL DEBT SERVICE Feb 01 BALANCE INTEREST 2/28/2001 RATE $ 0 $ 107,318.82 5.1 $ 81,296.15 0 $ 0 $ 0 $ 176,072.89 invst $ 588.23 0 $ 16,746.97 4.47 retro interest $ 691,530.59 4.47 retro interest $ 3,447,714.65 $ 2,946,108.01 $ 4,192,130.66 $ 624,672.87 $ 534,086.83 $ 6,396,579.16 $ 7,019,029.63 $ 3,447,714.65 $ 25,160,321.81 Page3 ------------------- City of Winter Springs Bank Account and Cash Summary March-01 BALANCE INTEREST BANK NAME BANK AlC # 3/31/2001 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 126,440.38 5.09 BofA Escrow Account 0034-4640-5949 $ 104,779.34 3.77 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,164,105.32 6.58 $ 2,395,325.04 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 11,568.19 1.4 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,370.92 2.99 BofA Stormwater Account 0034-4768-4413 $ 156,675.21 3.77 BofA Police Public Safety 0034-4768-4390 $ 240,361.47 3.77 BofA Fire Public Safety 0034-4768-4400 $ 321,357.98 3.77 BofA Medical Transport Service 0034-4768-4426 $ 541,309.38 3.77 BofA Public Service Tax 0034-4640-5965 $ 629,061.59 3.77 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 436,107.67 3.73 BofA Police Education Fund 0030-6496-2275 $ 28,532.24 0.68 BofA Transportation Improvement Fund 0030-6496-2343 $ 117,862.22 0.69 BofA Excise Tax Fund 0030-6496-2288 $ 0.10 0 Stiffel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 856,070.56 1.83 BofA Transportation Impact Fees 0028-3166-9568 $ 998,468.07 5 $ 4,365,745.60 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 355,147.62 3.77 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 271,767.74 5.01 $ 626,915.36 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 470,882.64 4.99 retro interest Mar 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary March-01 BALANCE INTEREST BANK NAME BANK AlC # 3/31/2001 RATE BofA Oak Forest Maintenance 3445195179 $ 20,002.83 4.99 retro interest BofA Oak Forest Debt Service 3445195195 $ 0 $ 490,885.47 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 3,897,449.58 5.02 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,189,793.86 5.01 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 348,352.40 3.77 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 348,352.44 3.77 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 222,136.61 3.77 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 34,700.67 2.99 $ 6,040,785.56 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 4,008.68 0 Regions 1997 Utility Construction 67-9002-7174 $ 989,204.37 4.8 AMBAC 1999 Construction Fund 9908101074 $ 2,203,462.39 5.7 Suntrust 1999 Construction Fund 56-02 -136-6797 551 $ 11,304.00 4.7 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,813,113.40 5.01 $ 7,021,092.84 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 268,190.78 2.3 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 4.55 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 960,194.61 4.55 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 234,476.68 4.31 Mar 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary March-01 BANK NAME BANK AlC # BNY 1993 GF Debt Service Clearing Account 460283 1 st Union 1997 GF Custody Agreement 4074862570 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 Regions 1997 Utility Subordinate debt service 67 -0600-8462 Regions 1997 Utility Subordinate debt service Clearing account 67-0990-0524 Suntrust 1999 GF Debt Service Escrow 5975152 Suntrust 1999 GF Debt Service COI Custodian Account 5975153 BofA 2000 Utility Debt Service AlC 0034-4526-0279 BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAPITAL DEBT SERVICE Mar 01 BALANCE INTEREST 3/31/2001 RATE $ 0 $ 107,737.25 4.9 $ 81,296.15 0 $ 0 $ 0 $ 209,758.58 invst $ 590.47 0 $ 16,756.95 4.5 retro interest $ 691,942.72 4.5 retro interest $ 3,665,750.61 $ 2,395,325.04 $ 4,365,745.60 $ 626,915.36 $ 490,885.47 $ 6,040,785.56 $ 7,021,092.84 $ 3,665,750.61 $ 24,606,500.48 Page3 ------------------- City of Winter Springs Bank Account and Cash Summary April-01 BALANCE INTEREST BANK NAME BANKAlC # 4/30/2001 RATE GENERAL FUND BofA General Fund Account ((ZBA wI depository) 0030-6496-2233 BofA Payroll Account (ZBA wI despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 1,651,869.86 4.39 BofA Escrow Account 0034-4640-5949 $ 105,057.16 3.27 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,116,732.81 5.23 $ 3,873,659.83 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 11,587.02 2 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,433.48 2.72 BofA Stormwater Account 0034-4768-4413 $ 258,873.70 3.24 BofA Police Public Safety 0034-4768-4390 $ 244,241.91 3.27 BofA Fire Public Safety 0034-4768-4400 $ 323,767.23 3.27 BofA Medical Transport Service 0034-4768-4426 $ 325,432.72 3.31 BofA Public Service Tax 0034-4640-5965 $ 635,410.57 3.27 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 437,205.81 3.27 BofA Police Education Fund 0030-6496-2275 $ 42,613.66 4.49 BofA Transportation Improvement Fund 0030-6496-2343 $ 137,365.72 4.52 BofA Excise Tax Fund 0030-6496-2288 $ 66,857.35 1.11 Stiffel Nicolaus Transportation Impact Fees - Investments DF09-8645-5684 $ 856,070.56 1.83 BofA Transportation Impact Fees 0028-3166-9568 $ 990,000.21 4.53 $ 4,357,859.94 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 36,624.19 3.33 BofA TLBD-Debt Service 0034-4640-5981 $ 0 BofA TLBD-Maintenance 0030-6496-2819 $ 292,207.70 4.52 $ 328,831.89 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 318,989.40 2.98 Apr 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary April-01 BALANCE INTEREST BANK NAME BANK AlC # 4/30/2001 RATE BofA Oak Forest Maintenance 3445195179 $ 20,718.76 2.99 BofA Oak Forest Debt Service 3445195195 $ 0 $ 339,708.16 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 2,939,977.16 4.55 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,210,587.90 4.53 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 349,276.06 3.27 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 349,726.10 3.27 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 222,725.61 3.27 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 37,888.49 2.71 $ 5,110,181.32 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 3,974.92 0 Regions 1997 Utility Construction 67-9002-7174 $ 992,950.17 4.5 AMBAC 1999 Construction Fund 9908101074 $ 2,162,317.71 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 11,349.00 4.3 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,827,023.42 4.53 $ 6,997,615.22 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02 -136-6797 512 $ 72,863.18 4.3 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 4.04 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 144,496.73 4.05 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 12,609.21 4.04 Apr 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary April-01 BALANCE INTEREST BANK NAME BANK AlC # 4/30/2001 RATE BNY 1993 GF Debt Service Clearing Account 460283 $ 0 1 st Union 1997 GF Custody Agreement 4074862570 $ 75,787.52 4.2 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 86,112.73 0 Regions 1997 Utility Subordinate debt service 67-0600-8462 $ 0 Regions 1997 Utility Subordinate debt service Clearing account 67 -0990-0524 $ 0 Suntrust 1999 GF Debt Service Escrow 5975152 $ 146,724.74 invst Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 592.85 0 BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 16,818.08 4.53 BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 $ 694,466.89 4.53 $ 2,345,278.35 GENERAL FUND $ 3,873,659.83 SPECIAL REVENUE FUNDS $ 4,357,859.94 TLBD SPECIAL ASSESSMENT $ 328,831.89 OAK FOREST SPECIAL ASSESSMENT $ 339,708.16 WATER AND SEWER $ 5,110,181.32 CAPITAL $ 6,997,615.22 DEBT SERVICE $ 2,345,278.35 $ 23,353,134.71 Apr 01 Page3 -_._---------------- City of Winter Springs Bank Account and Cash Summary May-01 BALANCE INTEREST BANK NAME BANK AlC # 5/31/2001 RATE GENERAL FUND BofA General Fund Account ((ZBA wI depository) 0030-6496-2233 BofA Payroll Account (ZBA wI despository) 0030-6496-2301 BofA Depository Account 0030-6496-2220 $ 1 ,146,734.40 3.92 BofA Escrow Account 0034-4640-5949 $ 105,285.58 2.59 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,116,732.81 5.23 $ 3,368,752.79 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 11 ,173.40 3.53 BofA Recreation Land Acquisition 0034-4768-4439 $ 28,472.01 3.54 BofA Stormwater Account 0034-4768-4413 $ 258,907.06 3.54 BofA Police Public Safety 0034-4768-4390 $ 248,875.86 3.54 BofA Fire Public Safety 0034-4768-4400 $ 320,045.02 3.54 BofA Medical Transport SeNice 0034-4768-4426 $ 335,296.09 3.54 BofA Public SeNice Tax 0034-4640-5965 $ 779,027.97 2.58 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 362,271.58 3.54 BofA Police Education Fund 0030-6496-2275 $ 64,208.99 3.84 BofA Transportation Improvement Fund 0030-6496-2343 $ 133,748.08 3.89 BofA Excise Tax Fund 0030-6496-2288 $ 158,664.99 1.51 BofA Transportation Impact Fees 0028-3166-9568 $ 1,816,728.57 3.87 $ 4,517,419.62 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 2,238,741.79 3.54 BofA TLBD-Debt SeNice 0034-4640-5981 $ 84.02 4.44 BofA TLBD-Maintenance 0030-6496-2819 $ 293,022.50 3.89 $ 2,531,848.31 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 299,157.59 3.9 BofA Oak Forest Maintenance 3445195179 $ 18,016.27 3.9 May 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary May-01 BALANCE INTEREST BANK NAME BANK AlC # 5/31/2001 RATE BofA Oak Forest Debt Service 3445195195 $ 84.02 4.44 $ 317,257.88 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 3,310,832.91 3.88 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,232,168.31 3.89 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 350,041.48 3.54 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 349,326.70 3.54 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 222,752.08 3.54 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 47,189.35 3.53 $ 5,512,310.83 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 3,964.67 0 Regions 1997 Utility Construction 67-9002-7174 $ 996,171.06 3.9 AMBAC 1999 Construction Fund 9908101074 $ 2,167,038.80 5.7 Suntrust 1999 Construction Fund 56-02 -136-6797 551 $ 11,389.00 3.6 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,839,447.08 3.89 $ 7,018,010.61 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 160,731.47 3.7 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 3.56 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 236,423.32 3.67 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 97,787.21 3.62 BNY 1993 GF Debt Service Clearing Account 460283 $ 0 May 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary May-01 BALANCE INTEREST BANK NAME BANK AlC # 5/31/2001 RATE 1 st Union 1997 GF Custody Agreement 4074862570 $ 108,198.23 3.6 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 86,112.73 0 Regions 1997 Utility Subordinate debt service 67 -0600-8462 $ 0 Regions 1997 Utility Subordinate debt service Clearing account 67-0990-0524 $ 0 Suntrust 1999 GF Debt Service Escrow 5975152 $ 180,395.00 invst Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 594.88 0 BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 16,872.68 3.89 BofA 2000 Utility Debt Service Reserve Ale 0034-4526-0266 $ 696,721.34 3.89 $ 2,678,643.28 GENERAL FUND $ 3,368,752.79 SPECIAL REVENUE FUNDS $ 4,517,419.62 TLBD SPECIAL ASSESSMENT $ 2,531,848.31 OAK FOREST SPECIAL ASSESSMENT $ 317,257.88 WATER AND SEWER $ 5,512,310.83 CAPITAL $ 7,018,010.61 DEBT SERVICE $ 2,678,643.28 $ 25,944,243.32 May 01 Page3 - - .- - - - - - - - - - - - - - City of Winter Springs Bank Account and Cash Summary June-01 BALANCE INTEREST BANK NAME BANK AlC # 6/30/01 RATE ACTION ITEMS GENERAL FUND BofA General Fund Account ((ZBA w/ depository) 0030-6496-2233 $ o pooled cash next few months BofA Payroll Account (ZBA w/ despository) 0030-6496-2301 $ o pooled cash next few months BofA Depository Account 0030-6496-2220 $ 312,815.31 3.57 pooled cash next few months BofA Escrow Account 0034-4640-5949 $ 105,587.67 3.55 pooled cash next few months Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,117,917.64 5.08 invst come due end of Sept-will close alc $ 2,536,320.62 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 15,860.27 3.54 pooled cash next few months BofA Recreation Land Acquisition 0034-4768-4439 $ 106,440.85 3.55 pooled cash next few months BofA Stormwater Account 0034-4768-4413 $ 260,178.31 3.55 pooled cash next few months BofA Police Public Safety 0034-4768-4390 $ 252,828.53 3.55 pooled cash next few months BofA Fire Public Safety 0034-4768-4400 $ 330,423.64 3.55 pooled cash next few months BofA Medical Transport Service 0034-4768-4426 $ 353,326.45 3.55 pooled cash next few months BofA Public Service Tax 0034-4640-5965 $ 844,134.90 3.55 pooled cash next few months BofA Electric Franchise Fee Fund 0034-4640-5952 $ 363,291.09 3.55 pooled cash next few months BofA Police Education Fund 0030-6496-2275 $ 64,193.35 3.55 pooled cash next few months BofA Transportation Improvement Fund 0030-6496-2343 $ 150,208.62 3.55 pooled cash next few months BofA Excise Tax Fund 0030-6496-2288 $ 158,860.60 1.51 pooled cash next few months - fix now BofA Transportation Impact Fees 0028-3166-9568 $ 1,814,868.85 3.55 pooled cash next few months $ 4,714,615.46 TlBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 2,245,183.23 3.55 pooled cash next few months BofA TLBD-Debt Service 0034-4640-5981 $ 100.31 3.54 pooled cash next few months BofA TLBD-Maintenance 0030-6496-2819 $ 290,412.18 3.55 pooled cash next few months $ 2,535,695.72 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 303,040.00 3.55 pooled cash next few months BofA Oak Forest Maintenance 3445195179 $ 15,929.58 3.55 pooled cash next few months BofA Oak Forest Debt Service 3445195195 $ 100.30 3.54 pooled cash next few months $ 319,069.88 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 3,670,436.01 3.55 pooled cash next few months BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,253,182.29 3.55 pooled cash next few months BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 351,042.91 3.55 pooled cash next few months BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 351,061.97 3.55 pooled cash next few months June 01 - - - Page 1 - - - - - - - - - - - - -' - - - - City of Winter Springs Bank Account and Cash Summary June-01 BALANCE INTEREST BANK NAME BANK AlC # 6/30/01 RATE ACTION ITEMS BotA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 223,845.39 3.55 pooled cash next tew months BotA Water/Sewer Reservation charge 0034-4640-5729 $ 47,321.81 3.55 pooled cash next tew months $ 5,896,890.38 CAPITAL 1st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 3,953.98 o close alc and move to gf op bofa per PFM Regions 1997 Utility Construction 67-9002-7174 $ 998,937.90 3.3 close alc and move to w&s op at bofa per PFM AMBAC 1999 Construction Fund 9908101074 $ 2,169,831.34 5.7 keep w/ AMBAC Suntrust 1999 Construction Fund 56-02-136-6797551 $ 11,423.00 3.4 close alc and move to gf op bofa per PFM BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,850,473.12 3.55 pooled cash next few months $ 7,034,619.34 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody alc 5975115 $ o close account per PFM Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 161,082.15 3.6 keep until 10/15/01 - refunding - invst mat 9/30 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 3.46 keep BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 240,377.75 3.66 keep BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ o keep Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ 1.33 o close account per PFM BNY 1993 GF Debt Service Reserve Fund 460310 $ o keep AMBAC Surety Bond Statement BNY 1993 GF Debt Service Sinking Fund 460304 $ 140,545.98 invst keep BNY 1993 GF Debt Service Clearing Account 460283 $ o keep 1 st Union 1997 GF Custody Agreement 4074862570 $ 75,787.52 3.6 close account per PFM - dep to gf bofa 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 97,345.40 o non-interest bearing sinking fund - change?PFM? Regions 1997 Utility Subordinate debt service 67-0600-8462 $ o close account per PFM Regions 1997 Utility Subordinate debt service Clearing account 67-0990-0524 $ o close account per PFM Suntrust 1999 GF Debt Service Escrow _ 5975152 $ 214,118.00 invst keep Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 596.67 invst close per PFM BotA 2000 Utility Debt Service AlC 0034-4526-0279 $ 16,921.13 3.55 pooled cash next few months BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 $ 698,722.17 3.55 pooled cash next few months $ 2,740,304.52 June 01 - - Page2 ------------------- City of Winter Springs Bank Account and Cash Summary June-01 BANK NAME BANK AlC # BALANCE INTEREST 6/30101 RATE ACTION ITEMS GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAPITAL DEBT SERVICE $ 2,536,320.62 $ 4,714,615.46 $ 2,535,695.72 $ 319,069.88 $ 5,896,890.38 $ 7,034,619.34 $ 2,740,304.52 $ 25,777,515.92 June 01 Page3 - - - - - - - - - - - - - - - - - -, .. City of Winter Springs Bank Account and Cash Summary July-01 BALANCE INTEREST BANK NAME BANK AlC # 7/31/01 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 $ 0 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 $ 0 BofA Depository Account 0030-6496-2220 $ 961,158.90 3.34 BofA Escrow Account 0034-4640-5949 $ 105,883.43 3.35 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 1,067,042.33 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 20,197.96 3.34 BofA Recreation Land Acquisition 0034-4768-4439 $ 106,739.00 3.35 BofA Stormwater Account 0034-4768-4413 $ 260,907.09 3.35 BofA Police Public Safety 0034-4768-4390 $ 258,291.38 3.35 BofA Fire Public Safety 0034-4768-4400 $ 333,632.12 3.35 BofA Medical Transport Service 0034-4768-4426 $. 371,629.43 3.35 BofA Public Service Tax 0034-4640-5965 $ 568,956.79 3.37 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 273,699.15 3.35 BofA Police Education Fund 0030-6496-2275 $ 62,190.94 3.35 BofA Transportation Improvement Fund 0030-6496-2343 $ 169,703.02 3.35 BofA Excise Tax Fund 0030-6496-2288 $ 372,687.72 1.51 BofA Transportation Impact Fees 0028-3166-9568 $ 1,819,056.82 3.35 $ 4,617,691.42 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 2,228,160.96 3.35 BofA TLBD-Debt Service 0034-4640-5981 $ 23,411.86 3.33 BofA TLBD-Maintenance 0030-6496-2819 $ 296,233.05 3.35 $ 2,547,805.87 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 312,181.48 3.35 BofA Oak Forest Maintenance 3445195179 $ 16,043.29 3.35 Jul01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary July-01 BALANCE INTEREST BANK NAME BANK AlC # 7/31/01 RATE BofA Oak Forest Debt Service 3445195195 $ 100.58 3.34 $ 328,325.35 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 2,713,739.07 3.35 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,274,110.96 3.35 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 352,026.21 3.35 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 352,045.33 3.35 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 224,472.40 3.35 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 47,454.36 3.35 $ 4,963,848.33 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 3,942.37 none Regions 1997 Utility Construction 67-9002-7174 $ 1,001,806.28 3.43 AMBAC 1999 Construction Fund 9908101074 $ 2,148,343.33 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 44,723.00 3.2 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,925,179.08 3.35 $ 7,123,994.06 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - custody ale 5975115 $ 0 Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 369,560.95 3.5 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 3.26 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 331,108.15 3.6 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 Suntrust 1993 GF Imp Rev Ref Custodian 5975154 $ 0 BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 185,410.83 3.5 BNY 1993 GF Debt Service Clearing Account 460283 Jul01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary July-01 BALANCE INTEREST BANK NAME BANK AlC # 7/31/01 RATE 1 st Union 1997 GF Custody Agreement 4074862570 $ 75,787.52 3.5 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 108,578.07 none Regions 1997 Utility Subordinate debt service 67 -0600-8462 $ 0 Regions 1997 Utility Subordinate debt service Clearing account 67-0990-0524 $ 0 Suntrust 1999 GF Debt Service Escrow 5975152 $ 214,649.00 invst Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 590.00 invst BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 17,830.70 3.35 BofA 2000 Utility Debt Service Reserve AlC 0034-4526-0266 $ 717,702.12 3.35 $ 3,116,023.76 GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAPITAL DEBT SERVICE $ 1,067,042.33 $ 4,617,691.42 $ 2,547,805.87 $ 328,325.35 $ 4,963,848.33 $ 7,123,994.06 $ 3,116,023.76 $ 23,764,731.12 Jul01 Page3 ------------------- City of Winter Springs Bank Account and Cash Summary August-01 BALANCE INTEREST BANK NAME BANK AlC # 8/31/2001 RATE GENERAL FUND BofA General Fund Account ((ZBA wi depository) 0030-6496-2233 $ 0 BofA Payroll Account (ZBA wi despository) 0030-6496-2301 $ 0 BofA Depository Account 0030-6496-2220 $ 106,177.44 3.28 BofA Escrow Account 0034-4640-5949 $ 106,171.90 3.26 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,154,790.83 2.84 $ 2,367,140.17 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 36,442.70 3.26 BofA Recreation Land Acquisition 0034-4768-4439 $ 107,029.80 3.26 BofA Stormwater Account 0034-4768-4413 $ 249,042.79 3.26 BofA Police Public Safety 0034-4768-4390 $ 261,908.81 3.26 BofA Fire Public Safety 0034-4768-4400 $ 336,106.43 3.26 BofA Medical Transport Service 0034-4768-4426 $ 388,786.64 3.25 BofA Public Service Tax 0034-4640-5965 $ 764,958.18 3.25 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 274,444.81 3.26 BofA Police Education Fund 0030-6496-2275 $ 60,295.28 3.26 BofA Transportation Improvement Fund 0030-6496-2343 $ 243,417.37 3.25 BofA Excise Tax Fund 0030-6496-2288 $ 489,591.12 2.5 BofA Transportation Impact Fees 0028-3166-9568 $ 1,803,655.47 3.26 $ 5,015,679.40 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 2,222,585.39 3.26 BofA TLBD-Debt Service 0034-4640-5981 $ 35,121.57 3.25 BofA TLBD-Maintenance 0030-6496-2819 $ 294,012.46 3.26 $ 2,551,719.42 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 199,524.26 3.26 BofA Oak Forest Maintenance 3445195179 $ 13,063.16 3.26 Aug 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary August-01 BALANCE INTEREST BANK NAME BANK AlC # 8/31/2001 RATE BofA Oak Forest Debt Service 3445195195 $ 112,474.59 3.07 $ 325,062.01 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 2,969,934.90 3.25 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,295,551.12 3.26 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 352,985.26 3.26 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 353,004.44 . 3.26 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 225,083.95 3.26 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 47,583.64 3.26 $ 5,244,143.31 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 3,930.89 0 Regions 1997 Utility Construction 67-9002-7174 $ 1,004,530.51 3.26 AMBAC 1999 Construction Fund 9908101074 $ 2,154,036.56 5.7 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 0.70 0 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,935,872.77 3.26 $ 7,098,371.43 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 98,823.55 4.1 BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 3 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 334,881.85 3.6 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 229,108.99 3.5 BNY 1993 GF Debt Service Clearing Account 460283 $ 0 1 st Union 1997 GF Custody Agreement 4074862570 $ 109,538.07 3.3 1st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 108,578.07 0 Aug 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary August-01 BALANCE INTEREST BANK NAME BANK AlC # 8/3112001 RATE Regions 1997 Utility Subordinate debt service 67 -0600-8462 $ 0 Regions 1997 Utility Subordinate debt service Clearing account 67 -0990-0524 $ 0 Suntrust 1999 GF Debt Service Escrow 5975152 $ 248,510.00 invst Suntrust 1999 GF Debt Service COI Custodian Account 5975153 $ 599.96 invst BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 17,879.28 3.26 BofA 2000 Utility Debt Service Reserve Ale 0034-4526-0266 $ 719,657.41 3.26 $ 2,962,383.60 GENERAL FUND SPECIAL REVENUE FUNDS TLBD SPECIAL ASSESSMENT OAK FOREST SPECIAL ASSESSMENT WATER AND SEWER CAP IT AL DEBT SERVICE $ 2,367,140.17 $ 5,015,679.40 $ 2,551,719.42 $ 325,062.01 $ 5,244,143.31 $ 7,098,371.43 $ 2,962,383.60 $ 25,564,499.34 Aug 01 Page3 ------------------- City of Winter Springs Bank Account and Cash Summary September-01 BALANCE INTEREST BANK NAME BANK AlC # 9/30/01 RATE GENERAL FUND BofA General Fund Account ((ZBA wI depository) 0030-6496-2233 $ 0 BofA Payroll Account (ZBA wI despository) 0030-6496-2301 $ 0 BofA Depository Account 0030-6496-2220 $ 678,313.47 2.41 BofA Escrow Account 0034-4640-5949 $ 106,409.32 2.75 Stiffel Nicolaus General Fund Account Invsts DF09-8599-9940 $ 2,154,790.83 2.84 $ 2,939,513.62 SPECIAL REVENUE FUNDS BofA Special Law Enforcement Trust 0034-4768-4442 $ 24,086.77 2.83 BofA Recreation Land Acquisition 0034-4768-4439 $ 107,269.14 2.75 BofA Stormwater Account 0034-4768-4413 $ 227,724.33 2.76 BofA Police Public Safety 0034-4768-4390 $ 264,766.99 2.75 BofA Fire Public Safety 0034-4768-4400 $ 338,103.13 2.75 BofA Medical Transport Service 0034-4768-4426 $ 408,910.05 2.75 BofA Public Service Tax 0034-4640-5965 $ 439,264.76 2.80 BofA Electric Franchise Fee Fund 0034-4640-5952 $ 275,058.51 2.75 BofA Police Education Fund 0030-6496-2275 $ 58,545.72 2.76 BofA Transportation Improvement Fund 0030-6496-2343 $ 263,930.66 2.74 BofA Excise Tax Fund 0030-6496-2288 $ 490,685.93 2.75 BofA Transportation Impact Fees 0028-3166-9568 $ 1,793,003.01 2.75 $ 4,691,349.00 TLBD SPECIAL ASSESSMENT BofA TLBD-Improvement Fund 0034-4640-5978 $ 2,215,905.92 2.76 BofA TLBD-Debt Service 0034-4640-5981 $ 46,849.64 2.70 BofA TLBD-Maintenance 0030-6496-2819 $ 290,543.07 2.76 $ 2,553,298.63 OAK FOREST SPECIAL ASSESSMENT BofA Oak Forest Capital 3445195182 $ 183,626.04 2.76 BofA Oak Forest Maintenance 3445195179 $ 13,076.04 2.75 Sept 01 Page1 ------------------- City of Winter Springs Bank Account and Cash Summary September-01 . BALANCE INTEREST BANK NAME BANK AlC # 9/30/01 RATE BofA Oak Forest Debt Service 3445195195 $ 204.74 3.11 $ 196,906.82 WATER AND SEWER BofA Water/Sewer system W. Gen. Ops 0012-8700-2433 $ 2,898,558.58 2.80 BofA Water/Sewer w. Trust Fund 0012-8700-2548 $ 1,309,778.93 2.75 BofA Water/Sewer System Cap. Improv 0034-4768-4387 $ 353,774.59 2.75 BofA Water/Sewer W. Cap. Improve acc 0034-4640-5732 $ 353,793.82 2.75 BofA Water/Sewer System West Ren & Repl 0034-4640-5716 $ 225,587.27 .2.75 BofA Water/Sewer Reservation charge 0034-4640-5729 $ 47,690.04 2.75 $ 5,189,183.23 CAPITAL 1 st Union 1997 Improvement Construction Fund 2090-0025-76838 $ 3,919.40 0 AMBAC 1999 Construction Fund 9908101074 $ 2,161,801.75 5.70 Suntrust 1999 Construction Fund 56-02-136-6797551 $ 0 BofA 2000 Utility Construction AlC 0034-4526-0282 $ 3,911,377.68 2.76 $ .6,077,098.83 DEBT SERVICE Suntrust 1991 Utility W&S Ref Rev Bonds - debt svc 56-02-136-6797512 $ 839.00 2.50 to be refunded BNY 1992 Utility Ref Rev. Debt Service (Reserve) 460301 $ 1,094,806.42 1.93 BNY 1992 Utility Refund Rev. Debt Service (East) 460298 $ 425,488.02 1.74 BNY 1992 Utility Refund Rev. Debt Service Clearing Account 460286 $ 0 BNY 1993 GF Debt Service Reserve Fund 460310 $ 0 BNY 1993 GF Debt Service Sinking Fund 460304 $ 273,523.96 1.63 BNY 1993 GF Debt Service Clearing Account 460283 $ 0 1 st Union 1997 GF Custody Agreement 4074862570 $ 109,869.24 2.90 1 st Union 1997 GF Subordinate Debt Service Fund 2090-0025-76935 $ 119,810.74 0 Sept 01 Page2 ------------------- City of Winter Springs Bank Account and Cash Summary September-01 BALANCE INTEREST BANK NAME BANK AlC # 9/30/01 RATE Suntrust 1999 GF Debt Service Escrow 5975152 $ 249,103.00 invst BofA 2000 Utility Debt Service AlC 0034-4526-0279 $ 17,919.26 2.75 BofA 2000 Utility Debt Service Reserve Ale 0034-4526-0266 $ 721,266.68 2.75 $ 3,012,626.32 GENERAL FUND $ 2,939,513.62 SPECIAL REVENUE FUNDS $ 4,691,349.00 TLBD SPECIAL ASSESSMENT $ 2,553,298.63 OAK FOREST SPECIAL ASSESSMENT $ 196,906.82 WATER AND SEWER $ 5,189,183.23 CAP IT AL $ 6,077,098.83 DEBT SERVICE $ 3,012,626.32 $ 24,659,976.45 Sept 01 Page3 ------------------- City of Winter Springs, Florida Proposed Bank Account Management System Overnight Sweep Investment Positive Pay - Check --. Protection l Checks State Board of Administration (SBA) Money Market Account City of Winter Springs Master Account - Full Reconciliation - Deposit Reconciliation - CD-ROM - Wire Transfers - On-Line System Accounts Payable ZBA -Direct Debit -ZBA Sub -Bank of America Direct (Internet Access) - Full Account Reconciliation -CD-ROM Investment Portfolio for Core Funds - Prev Day BalancelDetail - Stop Payments - Special Reports Zero Balance Account .-- Positive Pay - Check Protection - Direct Deposit Payroll / P - CD-ROM - ZBA Sub -Bank of America Direct (Internet Access) Checks J I I I I I I I I I I I I I I I I I I I Investment Policy City of Winter Springs, Florida Approved by the City Commission September 10,2001 I I I Table of Contents I Page I I. PURPOSE 3 n. SCOPE 3 I III. lNVESTMENT OBJECTNES 3 I N. DELEGATION OF AUTHORITY 4 V. STANDARDS OF PRUDENCE 4 I VI. ETHICS AND CONFLICTS OF INTEREST 5 I VII. lNTERNAL CONTROLS AND INVESTMENT PROCEDURES 5 VIII. CONTINUlNG EDUCATION 5 I IX. AUTHORIZED INVESTMENT lNSTITUTIONS AND DEALERS 5 I X. MATURITY AND LIQUIDITY REQUIREMENTS 6 XI. COMPETITNE SELECTION OF INVESTMENT INSTRUMENTS 6 I XII. AUTHORIZED INVESTMENTS AND PORTFOLIO COMPOSTION 7 I Xli. DERN A TIVES AND REVERSE REPURCHASE AGREEMENTS 13 XN. PERFORMANCE MEASUREMENTS 13 I XV. REPORTlNG 13 I XVI. THIRD-PARTY CUSTODIAL AGREEMENTS 14 xvn. INVESTMENT COMMITfEE 15 I XVIII. INVESTMENT POLICY ADOPTION 15 I I I City of Winter Springs Investment Policy Page 2 I I I I I I I I n. I I I III. I I I I I I I I City of Winter Springs Investment Policy I. PURPOSE The purpose of this policy is to set forth the investment objectives and parameters for the management of the funds of the City of Winter Springs, (hereinafter "City"). These policies are designed to ensure the prudent management of public funds, the availability of operating and capital funds when needed, and an investment return competitive with comparable funds and financial market indices. SCOPE In accordance with Section 218.415, Florida Statues, this investment policy applies to all cash and investments held or controlled by the City and shall be identified as "general operating funds" of the City with the excep~ion of the City's Pension Funds and funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Additionally, any future revenues, which have statutory investment requirements conflicting with this Investment Policy and funds held by state agencies (e.g., Department of Revenue), are not subject to the provisions of this policy. INVESTMENT OBJECTIVES Safety of Principal The foremost objective of this investment program is the safety of the principal of those funds within the portfolios. Investment transactions shall seek to keep capital losses at a minimum, whether they are from securities defaults or erosion of market value. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. From time to time, securities may be traded for other similar securities to improve yield, maturity or credit risk. For these transactions, a loss may be incurred for accounting purposes to achieve optimal investment return, provided any of the following occurs with respect to the replacement security: A. The yield has been increased, or B. The maturity has been reduced or lengthened, or C. The quality of the investment has been improved. City of Winter Springs Page 3 Investment Policy I I I I I I I I I I I I I I I V. I I I I Maintenance of Liquidity The portfolios shall be managed in such a manner that funds are available to meet reasonably anticipated cash flow requirements in an orderly manner. Periodical cash flow analyses will be completed in order to ensure that the portfolios are positioned to provide sufficient liquidity. Return on Investment Investment portfolios shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair ,return relative to the risk being assumed. IV. DELEGATION OF AUTHORITY In accordance with the City's Charter, the responsibility for providing oversight and direction in regard to the management of the investment program resides with the City's Manager. The City Manager may, with timely notice (prior to implementation) to the City Commission designate in writing a designee to have management responsibility for all City funds in the investment program and investment transactions. The City Manager shall establish written procedures for' the operation of the investment portfolio and a system of internal accounting and administrative controls to regula~e the activities of employees. The City may employ an Investment Manager to assist in managing some of the City's portfolios. Such Investment Manager must be registered under the Investment Advisors Act of 1940. STANDARDS OF PRUDENCE The standard of prudence to be used by investment officials shall be the "Prudent Person" standard and shall be applied in the context of managing the overall investment program. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectation are reported to the City Commission in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. The "Prudent Person" rule states the following: Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived from the investment. While the standard of prudence to be used by investment officials who are officers or employees is the Prudent Person standard, any person or firm hired or retained to invest, monitor, or advise concerning these assets shall be held to the higher standard of "Prudent Expert". The standard shall be that in investing and reinvesting moneys and in acquiring, retaining, managing, and disposing of investments of these funds, the contractor shall exercise: the judgment, care, skill, prudence, and diligence under the circumstances then prevailing, which persons of prudence, discretion, and intelligence, acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and r;..... .....-c '"'I 1:._4....._ C'1__;___ I I I I I I I I I I I I I I I I I I I with like aims by diversifying the investments of the funds, so as to minimize the risk, considering the probable income as well as the probable safety of their capital. VI. ETHICS AND CONFLICTS OF INTEREST Employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Also, employees involved in the investment process shall disclose to the Investment Committee any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any material personal financial/investment positions that could be related to the performance of the City's investment program. VII. INTERNAL CONTROLS AND INVESTMENT PROCEDURES The Finance Director shall establish a system of internal controls and operational procedures that are in writing and made a part of the City's operational procedures. The internal controls should be designed to prevent losses of funds, which might arise from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees. The written procedures should include reference to safekeeping, repurchase agreements, separation of transaction authority from accounting and record keeping, wire transfer agreements, banking service contracts, collateral/depository agreements, and "delivery vs. payment" procedures. No person may engage in an investment transaction except as authorized under the terms of this policy. These procedures are intended to reduce to a relatively low risk that material losses may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Independent auditors as a normal part of the annual financial audit to the City shall conduct a review of the system of internal controls to ensure compliance with policies and procedures. VIII. CONTINUING EDUCATION The Finance Director, management designee and/or appropriate staff shall annually complete 8 hours of continuing education in subjects or courses of study related to investment practices and products. IX. AUTHORIZED INVESTMENT INSTITUTIONS AND DEALERS Authorized City staff and Investment Advisors shall only purchase securities from financial institutions, which are Qualified Institutions by the City" or institutions designated as "Primary Securities Dealers" by the Federal Reserve Bank of New York. Authorized City staff and Investment Advisors shall only enter into repurchase agreements with financial institutions that are Qualified Institutions and Primary Securities Dealers as designated by the Federal Reserve Bank of New York. The Finance Director, management designee and/or the Investment Advisors shall maintain a list of financial institutions and broker/dealers that are approved for investment purposes and only firms meeting the following requirements will be eligible to serve as Qualified Institutions: 1) regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule); 2) Capital of no less than $10,000,000; City of Winter Springs Investment Policy Page 5 I I I 3) registered as a dealer under the Securities Exchange Act of 1934; 4) member of the National Association of Dealers (NASD); 5) registered to sell securities in Florida; and 6) the firm and assigned broker have been engaged in the business of effecting transactions in U.S. government and agency obligations for at least five (5) consecutive years. 7) Public Depositories qualified by the Treasurer of the State of Florida, in accordance with Chapter 280, Florida Statutes. I I All brokers, dealers and other financial institutions deemed to be Qualified Institutions shall be provided with current copies of the City's Investment Policy. A current audited financial statement is required to be on file for each financial institution and broker/dealer with which the City transacts business. I X. MATURITY AND LIQUIDITY REQUIREMENTS I To the extent possible, an attempt will be made to match investment maturities with known cash needs and anticipated cash flow requirements. Investments of current operating funds shall have maturities of no longer than twenty-four (24) months. I I Investments of bond reserves, construction funds, and other non-operating funds ("core funds") shall have a term appropriate to the need for funds and in accordance with debt covenants, but in no event shall exceed five (5) years. I XI. COMPETITIVE SELECTION OF INVESTMENT INSTRUMENTS I After the Finance Director, management designee or the Investment Advisor has determined the approximate maturity date based on cash flow needs and market conditions and has analyzed and selected one or more optimal types of investments, a minimum of three (3) Qualified Institutions and/or Primary Dealers must be contacted and asked to provide bids/offers on securities in questions. Bids will be held in confidence until the bid deemed to best meet the investment objectives is determined and selected. I I However, if obtaining bids/offers are not feasible and appropriate, securities may be purchased utilizing the comparison to current market price method on an exception basis. Acceptable current market price providers include, but are not limited to: I A. Telerate Information System B. Bloomberg Information Systems I c. Wall Street Journal or a comparable nationally recognized financial publication providing daily market pricing I D. Daily market pricing provided by the City's custodian or their correspondent institutiol)s I The Finance Director or the Investment Advisor shall utilize the competitive bid process to select the securities to be purchased or sold. Selection by comparison to a current market price, as indicated above, shall only be utilized when, in judgment of the Finance Director or the Investment Advisor, competitive bidding would inhibit the selection process. I I City of Winter Springs Investment Policy Page 6 I I I Examples of when this method may be used. I A. When time constraints due to unusual circumstances preclude the use of the competitive bidding process I B. When no active market exi~ts for the issue being traded due to the age or depth of the issue C. When a security is unique to a single dealer, for example, a private placement I D. When the transaction involves new issues or issues in the "when issued" market I Overnight sweep investments or repurchase agreements will not be bid, but may be placed with the City's depository bank relating to the demand account for which the sweep investments or repurchase agreement was purchased. I I XII. AUTHORIZED INVESTMENTS AND PORTFOLIO COMPOSITION I Investments should be made subject to the cash flow needs and such cash flows are subject to revisions as market conditions and as the City's needs change. However, when the invested funds are needed in whole or in part for the purpose originally intended or for more optimal investments, the Finance Director or management designee may sell the investment at the then-prevailing market price and place the proceeds into the proper account at the City's custodian. I The following are the investment requirements and allocation limits on security types, issuers, and maturities as established by the City. The Finance Director or management designee shall have the option to further restrict investment percentages from time to time based on market conditions, risk and diversification investment strategies. The percentage allocations requirements for investment types and issuers are calculated based on the original cost of each investment. Investments not listed in this policy are prohibited. I I I The allocation limits and security types do not apply to the investment of debt proceeds. These investments shall be governed by the debt covenant included in the debt instrument. A. United States Government Securities 1. Purchase Authorization I The Finance Director or management designee may invest in direct negotiable obligations, or obligations the principal and interest of which are unconditionally guaranteed by the United States Government. Such securities will include, but not be limited to the following: I I Cash Management Bills Treasury Securities - State and Local Government Series ("SLGS") Treasury Bills Treasury Notes Treasury Bonds Treasury Strips I I City of Winter Springs Investment Policy Page 7 I I I 2. Portfolio Composition I A maximum of 100% of available funds may be invested 111 the United States Government Securities. I 3. Maturity Limitations I I The maximum length to maturity of any direct investment in the United States Government Securities is five (5) years from the date of purchase. B. United States Government Agencies 1. Purchase Authorization I The Finance Director or management designee may invest in bonds, debentures, notes or callable issued and guaranteed by the United States Governments agencies, provided such obligations are backed by the full faith and credit of the United States Government. Such securities will include, but not be limited to the following: I Government National Mortgage Association (GNMA) -GNMA guaranteed mortgage-backed bonds -GNMA guaranteed pass-through obligations United States Export - Import Bank -Direct obligations or fully guaranteed certificates of beneficial ownership Farmer Home Administration -Certificates of beneficial ownership Federal Financing Bank -Discount notes, notes and bonds Federal Housing Administration Debentures General Services Administration United States Maritime Administration Guaranteed -Title XI Financing New Communities Debentures -United States Government guaranteed debentures United States Public Housing Notes and Bonds -United States Government guaranteed public housing notes and bonds United States Department of Housing and Urban Development -Project notes and local authority bonds I I I I I I I 2. Portfolio Composition I A maximum of 75% of available funds may be invested in United States Government agencies. 3. Limits on Individual Issuers I A maximum of 50% of available funds may be invested in individual United States Government agencies. I City of Winter Springs Investment Policy Page 8 I I I 4. Maturity Limitations I The maximum length to maturity for an investment in any United States Government agency security is five (5) years from the date of purchase. I C. Federal Instrumentalities (United States Government sponsored agencies) 1. Purchase Authorization I The Finance Director or management designee may invest in bonds, debentures or notes which may be subject to call, issued or guaranteed as to principal and interest by United States Government sponsored agencies (Federal Instrumentalities) which are non-full faith and credit agencies limited to the following: I I Federal Farm Credit Bank (FFCB) Federal Home Loan Bank or its district banks (FHLB) Federal National Mortgage Association (FNMA) Federal Home Loan Mortgage Corporation (Freddie-Macs) Student Loan Marketing Association (Sallie-Mae) I 2. Portfolio Composition I A maximum of 80% of available funds may be invested in Federal Instrumentalities. I 3. Limits on Individual Issuers A maximum of 40% of available funds may be invested in anyone issuer. I I I 4. Maturity Limitations The maximum length to maturity for an investment 10 any Federal Instrumentality security is five (5) years from the date of purchase. D. Interest Bearing Time Deposit or Saving Accounts 1. Purchase Authorization I The Finance Director or management designee may invest in non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state and in national banks organized under the laws of the United States and doing business and situated in the State of Florida. Additionally, the bank shall not be listed with any recognized credit watch information service. I I 2. Portfolio Composition I I A maximum of 25% of available funds may be invested 10 non-negotiable interest bearing time certificates of deposit. City of Winter Springs Investment Policy Page 9 I I I 3. Limits on Individual Issuers I A maximum of 15% of available funds may be deposited with anyone issuer. I 4. The maximum maturity on any certificate shall be no greater than one (1) year from the date of purchase. E. Repurchase Agreements I 1. Purchase Authorization a. The Finance Director or management designee may invest in repurchase agreements composed of only those investments based on the requirements set forth by the City's Master Repurchase Agreement. All firms are required to sign the Master Repurchase Agreement prior to the execution of a' repurchase agreement transaction. I I b. A third party custodian with whom the City has a current custodial agreement shall hold the collateral for all repurchase agreements with a term longer than one (1) business day. A clearly marked receipt that shows evidence of ownership must be supplied to the Finance Director and retained. I I c. Securities authorized for collateral are negotiable direct obligations of the United States Government, Government Agencies, and Federal Instrumentalities with maturities under five (5) years and must have a market value for the principal and accrued interest of 102 percent of the value and for the term of the repurchase agreement. Immaterial short-term deviations from the 102 percent requirement are permissible only upon the approval of the Finance Director or management designee. I I I 2. Portfolio Composition I A maximum of 50% of available funds may be invested in repurchase agreements excluding one (1) business day agreements and overnight sweep agreements. 3. Limits on Individual Issuers I A maximum of 25% of available funds may be invested with anyone institution. 4. Limits on Maturities I The maximum length to maturity of any repurchase agreement is 90 days from the date of purchase. I I I City of Winter Springs Investment Policy Page 10 I I I I F. Commercial Paper 1. Purchase Authorization I The Finance Director or management designee may invest in commercial paper of any United States company that is rated, at the time or purchase, "Prime-I" by Moody's and "A-I" by Standard & Poor's (prime commercial paper). Additionally, the company shall not be listed with any recognized credit watch information service. I 2. Portfolio Composition I A maximum of 30% of available funds may be directly invested in prime commercial paper. 3. Limits on Individual Issuers I A maximum of 10% of available funds may be invested with anyone issuer. 4. Maturity Limitations I The maximum length to maturity for prime commercial paper shall be 180 days from the date of purchase. I G. Bankers' acceptances I 1. Purchase Authorization I I I The Finance Director or management designee may invest in Bankers' acceptances issued by a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, at the time or purchase, the short-term paper is rated, at a minimum, "P-I" by Moody's Investors Services and "A-l"Standard & Poor's. Additionally, the bank shall not be listed with any recognized credit watch information service. 2. Portfolio Composition A maximum of 30% of available funds may be directly invested in Bankers' acceptances I 3. Limits on Individual Issuers A maximum of 10% of available funds may be invested with anyone issuer. I I 4. Maturity Limitations The maximum length to maturity for Bankers' acceptances shall be 180 days from the date of purchase. I I City of Winter Springs Investment Policy Page 11 I I I H. State and/or Local Government Taxable and/or Tax-Exempt Debt 1. Purchase Authorization I The Finance Director or management designee may invest in state and/or local government taxable and/or tax-exempt debt, general obligation and/or revenue bonds, rated at least "Aa" by Moody's and "AA" by Standard & Poor's for long-term debt, or rated at least "MIG-2" by Moody's and "SP-2" by Standard & Poor's for short-term debt. I I 2. Portfolio Composition A maximum of 20% of available funds may be invested in taxable and tax-exempt debts. I 3. Maturity Limitations I A maximum length to maturity for an investment in any state or local government debt security is three (3) years from the date of purchase. I. Registered Investment Companies (Money Market Mutual Funds) I 1. Investment Authorization I The Finance Director or management designee may invest in shares in open-end and no- load fixed-income securities money market mutual funds provided such funds are registered under the Federal Investment Company Act of 1940 and invest in securities permitted by this policy. I 2. Portfolio Composition I I I A maximum of 100% of available funds may be invested in money market mutual funds excluding one (1) business day overnight sweep agreements. 3. Limits of Individual Issuers A maximum of 25% of available funds may be invested with anyone money market mutual fund. I 4. Rating Requirements I The money market mutual funds shall be rated "AAm" or "AAm-G" or better by Standard & Poor's, or the equivalent by another national rating agency. 5. Due Diligence Requirements I I A thorough investigation of any money market mutual market fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed by the Finance Director or management designee that will contain a list of due diligence considerations that deal with the major aspects of any investment pool/fund. A current prospectus must be obtained. I City of Winter Springs Investment Policy Page ] 2 I I I I I I I XUI. I I XIV. I I I I I I I XV. I I I . J. Intergovernmental Investment Pool 1. Investment Authorization The Finance Director or management designee may invest in intergovernmental investment pools that are authorized pursuant to the Florida Interlocal Cooperation Act, as provided in Section 163.01, Florida Statutes and provided that said funds contain no derivatives. 2. Portfolio Composition A maximum of 25% of available funds may be invested in intergovernmental investment pools. DERIVATIVES AND REVERSE REPURCHASE AGREEMENTS Investment in any derivative products or the use of reverse repurchase agreements is specifically prohibited by this investment policy. A "derivative" is defined as a financial instrument the value of which depends on, or is derived from, the value of one or more underlying assets or indices or asset values. PERFORMANCE MEASUREMENTS In order to assist in the evaluation of the portfolios' performance, the City will use performance benchmarks for short-term and long-term portfolios. The use of benchmarks will allow the City to measure its returns against other investors in the same markets. A. Investment performance of funds designated as short-term funds and other funds that must maintain a high degree of liquidity will be compared to the return on the six-month U.S. Treasury Bill. Investments of current operating funds shall have maturities of no longer than twenty-four (24) months. B. Investment performance of funds designated as core funds and other non-operating funds that have a longer-term investment horizon will be compared to an index comprised of U. S. Treasury or Government securities. The appropriate index will have a duration and asset mix that approximates the portfolios and will be utilized as a benchmark to be compared to the portfolios' total rate of return. Investments of bond reserves, construction funds, and other non-operating funds ("core funds") shall have a term appropriate to the need for funds and in accordance with debt covenants, but in no event shall exceed five (5) years. REPORTING The Finance Director, management designee and/or Investment Advisor shall provide the City Manager with a "Quarterly Investment Report" that summarizes but is not limited to the following: A. Recent market conditions, economic developments and anticipated investment conditions. B. The investment strategies employed in the most recent quarter. City of Winter Springs Page 13 Investment Policy I I I I C. A description of all securities held in investment portfolios at month-end. D. The total rate of return for the quarter and year-to-date versus appropriate benchmarks. I E. 'Any areas of policy concern warranting possible revisions to current or planned investment strategies. The market values presented in these reports wilI be consistent with accounting guidelines in GASB Statement 31. I On an annual basis, the City Manager designee shall submit to the City Commission a written report on all invested funds. The annual report shall provide all, but not limited to, the following: a complete list of all invested funds, name or type of security in which the funds are invested, the amount invested, the maturity date, earned income, the book value, the market value, the yield on each investment. I I The annual report will show performance on both a book value and total rate of return basis and will compare the results to the above-stated performance benchmarks. All investments shall be reported at fair value per GASB Statement 31. Investment reports shall be available to the public. XVI. THIRD-PARTY CUSTODIAL AGREEMENTS I Securities, with the exception of certificates of deposits, shall be held with a third party custodian; and all securities purchase by, and all collateral obtained by, the City should be properly designated as an asset of the City. The securities must be held in an account separate and apart from the assets of the financial institution. A third party custodian is defined as any bank depository chartered by the Federal Government, the State of Florida, or any other state or territory of the United States which has a branch or principal place of business in the State of Florida, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in the State of Florida. Certificates of deposits will be placed in the provider's safekeeping department for the term of the deposit. I I I I I The custodian shall accept transaction instructions only from those persons who have been duly authorized by the City Manager and which authorization has been provided, in writing, to the custodian. No withdrawal of securities, in whole or in part, shall be made from safekeeping, shalI be permitted unless by such a duly authorized person. I The custodian shall provide the Finance Director or management designee with safekeeping statements that provide detail information on the securities held by the custodian. On a monthly basis, the custodian will also provide reports that list all securities held for the City, the book value of holdings and the market value as of month-end. I Security transactions between a broker/dealer and the custodian involving the purchase or sale of securities by transfer of money or securities must be made on a "delivery vs. payment" basis, if applicable, to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. Securities held as colIateral shalI be held free and clear of any liens. I I I City of Winter Springs Investment Policy Page 14 I I I XVII. INVESTMENT COMMITTEE I The Finance Director with the approval of the City Manager will establish an Investment Committee for the purpose of formulating alternative investment strategies and short-range directions within the guideline herein set forth and for monitoring the performance and structure of the City's portfolio. The Committee shall include the Finance Director as Chairman, the City Controller, a Commission member and the City's financiaVinvestment advisor, and may include other members as may be designated by the City Manager from time to time. I I A designee of the Finance Director will provide the Committee members with current market information, an updated portfolio listing and analysis, and various pertinent financial data. The Committee, or quorum of the committee shall meet as often as deemed necessary, under the given conditions, to review, discuss and affirm or alter the current investment strategy and perform other functions as herein provided. I I The Investment Committee activities shall include but not be limited to review and setting investment strategies; review and establishing of written investment procedures; review and approval of bank and other rating agency services; review and approval of source documentation regarding issuers, institutions and dealers, and any other functions as defined herein. I I XVIII. INVESTMENT POLICY ADOPTION I The Investment Policy shall be adopted by the City in writing. The Finance Director, Controller, and the Investment Committee shall review the policy annually and submit recommendations to the City Manager for review and approval. If a change in the Policy is recommended for approval by the City Manager, the Finance Director will prepare the necessary report to Commission. I I I APPROVED AND ADOPTED BY THE CITY COMMISSION ON SEPTEMBER 10,2001. Title: I I Title: I I Title: I City of Winter Springs Investment Policy Page 15 I I I I I I I I I I I I I I I I I I I INTERNAL CONTROLS AND OPERATIONAL PROCEDURES MANUAL FOR INVESTMENTS September 30, 2001 I I I I I I I I I I I I I I I I I I I Table of Contents I. PURPOSE 11. SCOPE m. DELEGA nON OF AUTHORITY IV. STANDARDS OF PRUDENCE V. ETHICS AND CONFLICTS OF INTEREST VI. OPERATIONAL PROCEDURES A. Cash Review B. Investment Selection C. Purchasing an Investment D. Settlement and Follow Through E. Reporting Requirements F. Accounting for Investment Transactions G. Data Input of Investment Transactions H. Investment Information I. Bid Process J. Security Confirmations K. Safekeeping Procedures L. Bank Corrections M. Daily Operations for City Controller 1. Worksheets Page Number 3 3 3 4 5 5 5 6 7 8 9 9 9 9 10 10 11 2. Trading 3. Trade Confrrmations 4. State Board of Administration 5. Money Markets 6. Authorized Wires 7. Repeat Codes 11 11 12 12 13 13 13 13 VII. MANUAL REVIEW AND APPROVAL City of Winter Springs Internal Controls and Operational Procedures Page 2 I I I I I I I I I I I I I I I I I I I Internal Controls and Operational Procedures Manual for Investments City of Winter Sprin2s~ Florida I. PURPOSE The City of Winter Springs (the "City") recognizes that as a public entity the City is endowed with the trust and use of funds from vaqous sources including the issuance of debt, federal, state and local grants, and proceeds generated from the operations of the City's facilities. An important part of the City's earnings is the investment of funds derived from these sources. Therefore, the purpose of this Internal Controls and Operational Procedures Manual for Investments is to provide guidelines to assist the City's Authorized staff with day-to-day investment operations. II. SCOPE In accordance with Section 218.415(13), Florida Statues, this Internal Controls and Operational Procedures Manual for Investments ("Manual") applies to all cash and investments held or controlled by the City. The Finance Director has established a system of internal controls and operational procedures that are a part of the City's operational procedures. The internal controls have been designed to prevent losses of funds, which might arise from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees. The procedures are intended to reduce to a relatively low level the risk that material losses may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. The written procedures include reference to safekeeping, repurchase agreements, and separation of transactions from accounting and record keeping, wire transfer agreements and depository agreements. No person may engage in any investment transaction except as authorized under the terms of this Manual. Independent auditors as a normal part of the annual financial audit to the City shall conduct a review of the system of internal controls to ensure compliance with the investment policy and this Manual. III. DELEGATION OF AUTHORITY Responsibility for the investment program is vested with the City Manager. Responsibility for the administration of the investment program is hereby delegated by the City Manager to the Finance Director, who shall maintain an internal controls and operational procedures manual for investmerits pursuant to the City's investment policy. The Finance Director shall be responsible for monitoring internal controls, administrative controls and to regulate the activities of the City's staff involved with the investment program. City of Winter Springs Internal Controls and Operational Procedures Page 3 I I I I I I I I I I I I I I I I I I I The Authorized Staff is limited to the following positions: . City Manager . Finance Director . City Controller A. Chain of Command For the purpose of obtaining approval on investment activity, the following chain of command is appropriate. 1. City Controller 2. Finance Director 3. City Manager B. Duties and Responsibilities The Finance Director and delegate (hereafter referred to as "Controller") have specific duties and responsibilities as stated in the position description. The Finance Director shall be responsible for the management of the investment program and the City Controller shall be responsible for the daily operational duties (i.e., purchases, sells, bank accounts, wires, and investment reports). C. Separation of Duties The City Controller shall not be responsible for the reconciliation of the bank accounts; this is the responsibility of the staff accountant. Furthermore, adequate separation of duties requires that the City Controller should not also be responsible for writing checks or preparing bank deposit slips. D. Continuing Education The Finance Director, management designee and/or appropriate staff shall annually complete 8 hours of continuing education in subjects or courses of study related to investment practices and products. IV. STANDARDS OF'PRUDENCE The standard of prudence to be used by investment officials shall be the "Prudent Person" standard and shall be applied in the context of managing the overall investment program. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectation are reported to the City Commission in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. The Prudent Person rule states the following: Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived from the investment. City of Winter Springs Internal Controls and Operational Procedures Page 4 I I I I I I I I I I I I I I I I I I I While the standard of prudence to be used by investment officials who are officers or employees is the Prudent Person standard, any person or firm hired or retained to invest, monitor, or advise concerning these assets shall be held to the higher standard of "Prudent Expert". The standard shall be that in investing and reinvesting moneys and in acquiring, retaining, managing, and disposing of investments of these funds, the contractor shall exercise: the judgment, care, skill, prudence, and diligence under the circumstances then prevailing and in accordance with the City's Investment Policy, which persons of prudence, discretion, and intelligence, acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims by diversifying the investments of the funds, so as to minimize the risk, considering the probable income as well as the probable safety of their capital. V. ETHICS AND CONFLICTS OF INTEREST Employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Also, employees involved in the investment process shall disclose to the Investment Committee any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any material personal financial/investment positions that could be related to the performance of the City's investment program. VI. OPERA TIONAL PROCEDURES A. Cash Review The City Controller must review the cash balances and investment portfolio daily, or as needed. Items to be reviewed should include the following: 1. Balances, by fund if so deposited, at primary bank. 2. Balances, by fund if so deposited, at other banks. 3. Maturing investments (includes Repo's, CD's, Commercial Paper, Bankers' Acceptances and general securities). 4. Bond sales and other large, periodic receipts. 5. Bond and coupon payments (debt service) and other large periodic cash disbursements. B. Investment Selection The Finance Director determines how much of the cash balance is available for investment and selects the area of the yield curve that most closely matches the required maturity date. In determining the maturity date, the Finance Director should consider liquidity, cash flow and expected expenditures. A review of some of the following sources should be made to determine whether the investments should be placed to match projected expenditures or shorter, or to take advantage of current and expected interest rate environments, as follows: City of Winter Springs Internal Controls and Operational Procedures Page 5 I I I I I I c. I I I I I I I 1. The Wall Street Journal or similar daily business publication. 2. Input from approved brokers/dealers. 3. Input from depository banks. 4. Publications on general trends of economic statistics. 5. Input from data services (Telerate, Bloomberg, Reuters, etc.). 6. Input from the Investment Advisor. Purchasing an Investment The City Controller or authorized Investment Advisor shall only purchase securities from financial institutions, which are qualified as public depositories by the Treasurer, or Chief Financial Officer of the State of Florida, "Primary Securities Dealers" as designated by the Federal Reserve Bank of New York, or from Qualified Institutions. Additionally, Authorized Staff and Investment Advisor shall only enter into repurchase agreements with "Primary Securities Dealers" as designated by the Federal Reserve Bank of New York and financial institutions that are state qualified public depositories. The City Controller or authorized Investment Advisor should be as specific as possible in requesting for a security offering. If a particular type of investment or a particular issuing agency is to be excluded due to policy limitations that should be stated to the providers. If collateral is required (i.e. for Repo's or CD's), the collateral limitations (excess margin, types of securities, maximum maturity, etc.) should be specified. The following must be determined prior to contacting the providers: 1. Settlement-cash, regular (next day), corporate (3 business days) or when-issued if a new Issue. 2. Amount-either par value or total dollars to be invested. 3. Type of security to be purchased, or type to be excluded. 4. Targeted maturity, or maturity range. I I 5. Time limit to show offering-5 minutes, 15 minutes, etc. If choosing an external pool or fund as the preferred investment vehicle, the following should be available for inspection prior to purchase and at any reasonable time thereafter: I 1. A written investment policy, if a government-run investment pool. I 2. A prospectus for money-market funds, mutual funds or bank-managed funds. 3. I 4. I City of Winter Springs A schedule of the types of reports and the frequency of distribution. A clear description of how interest rates are calculated (30/360, actual/365, etc.). Internal Controls and Operational Procedures Page 6 I I I I I I I I I I I I I I I I I I I 5. A schedule of when and how income is distributed. 6. Are the pools or fund types of investments restricted to the City's own legal and policy limits? 7. Are the pools or fund investments restricted to the City's own maturity limits? Before concluding the transaction, the City Controller or authorized Investment Advisor should validate the following: 1. The security selected for purchase meets all criteria, including portfolio diversification, collateralization (if appropriate), and maturity. If the security has any imbedded options such as call provisions or coupon adjustments, these should also be reviewed. 2. Yield calculations should be verified. 3. Total purchase cost (including accrued interest) does not exceed funds available for investment. 4. Advise the successful provider that their offering has been selected for purchase. 5. After the confirmation of the purchase, as a courtesy, notify the other brokers/dealers that you have placed the investment. Best price may be disclosed, if you choose. After consummation of the transaction, and prior to settlement date, the City Controller or authorized Investment Advisor and the provider should exchange and review the following information to ensure prompt, and uninterrupted settlement, as follows: 1. Name of third-party safekeeping agent. 2. ABA number of safekeeping agent. 3. Safekeeping account number. 4. Reconfirm amount of transaction. 5. Reconfirm settlement date. 6. Acquire CUSlP number of security, if applicable. D. Settlement and Follow Through The City Controller, or authorized Investment Advisor should forward to the safekeeping agent a trade confirmation of the investment transaction. If the Investment Advisor executes the transaction, the trade ticket should also be forwarded to the Finance Director's Office. The report may be verbal, but a written form should be sent and acknowledged. When applicable, the following should be verified: 1. Provision of receipt or disbursement of funds. 2. Internal transfer or wiring of funds. City of Winter Springs Page 7 Internal Controls and Operational Procedures I I 3. Validation of written a trade confirmation. \) I 4. Notification of discrepancy prior to acceptance or rejection of the transaction. 5. Immediate notification if a fail has occurred: by the provider if they are responsible, by safekeeping agent if they are responsible. I I E. Reporting Requirements I The Finance Director or the Investment Advisor shall provide the City Manager with quarterly investment reports. Schedules in the quarterly report should include the following: 1. A listing of individual securities held at the end of the reporting period. I 2. Percentage of available funds represented by each investment type. I 3. Coupon, discount or earning rate. 4. Average life or duration and final maturity of all investments. I 5. Par value, and market value. I In addition, the quarterly investment report summarize but is not limited to the following: 1. Recent market conditions, economic developments and anticipated investment conditions. I 2. The investment strategies employed in the most recent quarter. 3. A description of all securities held in investment portfolios at month-end. I I 4. The total rate of return for the quarter and year-to-date versus appropriate benchmarks. 5. Any areas of policy concern warranting possible revisions to current or planned investment strategies. The market values presented in these reports will be consistent with accounting guidelines in GASB Statement 31. I I On an annual basis, the City Manager or management designee shall prepare and submit to the City Commission a written report on all invested funds. The annual report shall provide all, but not limited to, the following: a complete list of all invested funds, name or type of security in which the funds are invested, the amount invested, the maturity date, earned income, the book value, the market value and the yield on each investment. I The annual report will show performance on both a book value and total rate of return basis and will compare the results to the above-stated performance benchmarks. All investments shall be reported at fair value per GASB standards. Investment reports shall be available to the public. I I I City of Winter Springs Internal Controls and Operational Procedures Page 8 I I F. Accounting for Investment Transactions I I The City Controller will prepare the journal entries to be posted for all investment transactions and the journal entries will be submitted to the Finance Director for review and approval. Additionally, the City Controller must supply the necessary supporting documentation for all journal entries, for example brokerage or bank statements. I G. Data Input of Investment Transactions I The City Controller shall enter investment transactions into the appropriate spreadsheets. Investment entries shall be completed on a monthly basis to ensure that information is current. Information will include the following: current market value, original price, interest earned, accrued interest, current yields, updated money market and SBA balances, purchases, and sells. I Additionally, all investments as recorded on the reports shall be reconciled against the original securities' confirmations. I H. Investment Information I 1. Market Values I I On a monthly basis, market values of securities held for bond reserves shall be calculated including accrued interest to the last day of the month. Market values for securities, which fall below stated bond requirements should be noted and reported to the Finance Director for correction. In addition, all marketable securities (i.e., Treasury bills, notes, and Federal Instrumentalities) shall be priced on a monthly basis. I I I I 2. Trust Statements On a monthly basis, the City Controller shall reconcile original trust statements for the City's investment accounts that are held by the custodian. The Finance Director will review and approve each monthly trust statement. 1. Bid Process I As stated in the City's Investment Policy, the City shall only purchase securities after the Finance Director or the Investment Advisor has determined the approximate maturity date based on cash flow needs and market conditions and has analyzed and selected one or more optimal types of investments, a minimum of three (3) qualified banks and/or approved brokers/dealers must be contacted and asked to provide bids/offers on securities in questions. Bids will be held in confidence until the bid deemed to best meet the investment objectives is determined and selected. I However, if obtaining bids/offers are not feasible and appropriate, secuntIes may be purchased utilizing the comparison to current market price method on an exception basis. Acceptable current market price providers include, but are not limited to: I I City of Winter Springs Internal Controls and Operational Procedures Page 9 I I I I I I I I I I I I I I I I I I I 1. Telerate Information System. 2. Bloomberg Information Systems. 3. Wall Street Journal or a comparable nationally recognized financial publication providing daily market pricing. 4. Daily market pricing provided by the City's custodian or their correspondent institutions. The Finance Director or the Investment Advisor shall utilize the competitive bid process to select the securities to be purchased or sold. Selection by comparison to a current market price, as indicated above, shall only be utilized when, in judgment of the Finance Director or the Investment Advisor, competitive bidding would inhibit the selection process. Examples of when this method may be used include: 1. When time constraints due to unusual circumstances preclude the use of the competitive bidding process. 2. When no active market exists for the issue being traded due to the age or depth of the issue. 3. When a security is unique to a single dealer, for example, a private placement. 4. When the transaction involves new issues or issues in the "when issued" market. Overnight sweep investment and repurchase agreements will not be bid, but may be placed with the City's depository bank relating to the demand accounts for which the sweep investment and repurchase agreement were purchased, subject to collateral restrictions as outlined in the Investment Policy. J. Security Confirmations An individual not permitted to purchase and/or sell investments shall file and reconcile security confirmations. All confirmations for securities, including certificates of deposit, shall be filed by the maturity date. Upon receipt, all current investment confirmations shall be reconciled against the appropriate investment reports. Securities that have matured shall be filed by maturity date in a maturity file. Only copies of confirmations of investments will be provided, as all originals must remain within the Finance Department. K. Safekeeping Procedures All securities purchased for the City shall be received by "delivery vs. payment" to the City's custodian for safekeeping. Certificates of deposit are permitted to be safe kept at the issuing bank; however, all certificate of deposit confirmations must be verified with the appropriate investment reports on a monthly basis. City of Winter Springs Page 10 Internal Controls and Operational Procedures I I I I I I I I I I I I I I I I I I I Collateral for repurchase agreements with maturities longer than one (1) business day shall be delivered to the custodian and collateral for repurchase agreements for only one (1) business day shall remain at the depository bank. Additional requirements and procedures are outlined in the Third- Party Custodian Safekeeping Agreement regarding safekeeping procedures. L. Bank Corrections All bank corrections shall be requested in a written memo. The memo should provide for a section to state the problem followed by a section for a solution to the problem. The memo is delivered to the bank's corporate cash management section. M. Daily Operations for City Controller Daily operations are defined as those duties and procedures required to maintain the investment program on a daily basis. 1. Worksheets a. All investment activity is recorded on the daily worksheets, which include but are not limited to purchases, maturities, incoming and outgoing wires. The worksheets are maintained in a file for reference purposes. b. The top section of the worksheet is for debits to the account. The middle section is for money requirements. The bottom section is for investment purchases. A daily worksheet is completed in conjunction with a download from the bank to determine daily cash requirements and/or use of funds for investment purposes. If the available cash balance is negative, funds can be drawn from the SBA or an investment to provide for expenditures. If a positive balance is at the bottom of a spreadsheet, the balance can be used to purchase new investments or if the amount is too small, it can be deposited to the SBA. The goal is to have all daily worksheets with a zero balance, however, wire costs and interest rates may affect the decision to zero out a bank account balance. c. Finally, when the daily worksheets are completed the Finance Director shall receive a copy ofthe daily worksheets for review. 2. Trading a. All trading, except as provided for in Section I. (Bid Process) must be executed with an approved broker/dealer and a minimum of three (3) quotes per security must be obtained. b. Required procedures prior to purchases or sales (additional steps may be required). City of Winter Springs Page 11 Internal Controls and Operational Procedures I I 1) Verify amounts available at the SBA or in a bank/investment account. I I 2) Check investment limits to determine which investment types have availability in the portfolio. Review the investment statements to determine the required maturity dates. 3) I 4) Decide on an investment type, then obtain quotes from three different brokers/dealers and choose the best quote. I 3. Trade Confirmations I All quotes received from brokers/dealers must be recorded on a trade confirmation, which includes but is not limited to the account name, trade date, the dollar amount, settlement date, security description, offer information, and comments. I 4. State Board of Administration I The State Board of Administration ("SBA") is one of the money market funds used for short- term placement of funds. The SBA closes promptly at 11 :00 AM, it is critical that all money requirements or excess money sweeps are completed by approximately 10:30 AM. The following steps are used when conducting transactions with the SBA. I . a. The recorded message will provide step-by-step instructions as follows: I 1) PIN Number 2) account number 3) verify account 4) transaction type (deposit/withdrawal) 5) verify transaction type 6) amount of transaction 7) verify dollar amount I I I I I b. After verifying the dollar amount, a transaction reference number will be provided. Record this number on the SBA worksheet under the appropriate account name. Finally, the caller will be prompted to end the call or proceed with the next account. I I c. If a problem occurs, call the SBA at (850)-488-7311. I City of Winter Springs Internal Controls and Operational Procedures Page 12 I I I I I I I I I I I I I I I I I I I 5. Money Market Funds Money market funds must meet the ratings standards and cannot exceed the asset allocation limits as set forth in the City's Investment Policy. Prospectuses for money market funds should be kept and reviewed at least annually to ensure compliance and to obtain the best possible returns. 6. Authorized Wires Only authorized representatives as stated in the Bank's Funds Transfer Agreement should be authorized to wire City's funds. Wire instructions and personal identification numbers (PIN's) shall be safeguarded by the Authorized Staff. One Authorized Staff member will enter the wire information into the EBW System and another Authorized Staff member will verify the information, release the wire, and verify the wire has been sent. All outgoing and incoming wires shall be printed from the daily activity report and filed with the appropriate daily work package. The purpose of the wire shall be recorded with the wire information. 7. Repeat Codes Only pre-approved repetitive wires are permitted to be used. No one in the Finance Department is authorized to use a repeat code without the approval of the Finance Director. The wire transaction request must be in writing and signed by the Finance Director. VII. MANUAL REVIEW AND APPROVAL The Finance Director shall review the Manual annually and, if necessary, present modifications to the City for approval. Approved this ~ day of 2001. Finance Director City of Winter Springs, Florida City of Winter Springs Internal Controls and Operational Procedures Page 13 I I I I I I I I I I I I I I I I I I I . I I :. , "i :' : . . Participant.a,nd'lnvestment Returns", ',' . . .. /',",: ^" " Month 2001 2000 1999 1998 1997 1996 Part. 30-Day Part. 30-Day Part. 30-Day Part. 3D-Day Part. 3D-Day Part. 30-Day January 6.20 6.12 5.90 5.77 4.99 4.98 5.65 5.56 5.44 5.43 5.56 5.53 February 5.72 5.73 5.89 5.92 4.86 4.83 5.52" 5.46 5.40 5.39 5.3 5.28 March 5.41 5.35 5.95 5.89 4.87 4.81 5.56 5.47 5.47 5.42 5.24 5.23 April 4.97 4.91 6.08 6.01 4.87 4.82 5.56 5.49 5.59 5.53 5.29 5.27 May 4.53 4.46 6.26 6.19 4.85 4.79 5.58 5.48 5.61 5.55 5.29 5.28 June 4.18 4.12 6.49 6.41 4.90 4.90 5.54 5.51 5.60 5.54 5.32 5.32 July 3.87 3.83 6.56 6.48 5.05 4.98 5.56 5.51 5.59 5.53 5.35 5.35 August 3.73 3.68 6.60 6.52 5.17 5.11 5.57 5.51 5.56 5.51 5.38 5.38 September 3.46 3.43 6.61 6.54 5.33 5.23 5.56 5.51 5.56 5.53 5.38 5.39 October 6.64 6.55 5.51 5.45 5.47 5.33 5.55 5.51 5.36 5.38 November 6.67 6.59 5.73 5.66 5.13 5.17 5.57 5.51 5.37 5.37 December 6.68 6.59 5.88 5.83 5.26 5.16 5.75 5.66 5.44 5.42 I 'INK OF AMERICA. N.I2~rilr of America ~. BOX 830175 ACC~L~f! ~ "DALLAS, TX 75283-0175 ~ <{?' I I I 11111111111111111111111111111.11111111111.11111111111111111111 CITY OF HINTER SPRINGS DEPOSITORV ACco..NT 1126 E STATE ROAD 434 HINTER SPRINGS fL 32708-2715 I I I INVESTI1ENT saNARY I INVESTI1ENT LEDGER BALANCE 15.976,9,,9.06 I INVESTI1ENT COLLECTED BAL LESS RESERVE REQUIREMENT 15.914,465.67 .00 AVAILABLE INVEsmENT BALANCE 15,914,549.62 I I I I I I I I I I ANA L VS I S STATEMENT Hember FDIC GROUP ~~RV ANALYSIS 00 0030 6496 2ZZ0 BANK AND COST CENTER NUMBER 075 OD06734 DATE PREPARED 06-05-01 ~OlTH ENDING ~ONTHLV SETTLEMENT SETTLEt1ENT & ACro.NT TYPE OfFICER NUMBER PAGE 05-31-01 05-31-01 DEBIT 119 10f 51 500 \11111 II 11\ \\1\ II 1\ \ \1\\ 11\ III \ \\\\\ \ \ II 1\\11\ 1\\\\1111\1 11\\ 11\\ 1 I . BankofAmerica ~ t;<...N1C, OF AI.IERICA. N.A. ~~?~iA.. . ,,' r.o. BO'I< 830175 ACCT AN^L'ISIS ~~ DALLAS. TX 75283-0175 ~. ANAL VSIS STATEMENT Mer.1ber- FDIC I GRruP SU1IARY ANALYSIS 00 0030 64% 2220 BANK AND COST CENTER NU1BER 075 0006734 I DATE PREPARED 06-05-01 I CITY OF HINTER SPRING~ DEPOSITORY ACCOUNT 112~ ESTATE RD 434 HINTER SPRINGS FL 32700-2715 tOHH ENDING MONTHLY SETTLEMENT SETTLEMENT & ACCOUNT TYPE OFFICER IUIBER PAGE 05-31-01 05-31-01 DEBIT 119 500 2 OF 51 I I CURRENT "o-lTH' S EARNlNi;S CREDIT RATE = 2.80% CURRE~IT to-lTH' S tJJL TlPLE = $420.50 NJ1BER OF LNIT SERVICE BALANCE SERVICE LNITS PRICE . ctIARGE REWIRED BALANCE RELATED SERVICE5 COLL OVERDRAFT INTEREST CHARGE 82 10.2600 .65 273.26 FDIC INSURANCE CHARGE 18,078,214 236.70 99,534.00 DEPOSITORV SERVICES ACto.NT tlAINTENANCE 42 15.0000 630.00 264,919.35 BRANCH IOTC I DEP051T 65 .4500 29.25 12,299.75 QBD QJICK BUSINESS DEPOSIT 50 .4500 22.50 9,461.41 ITEM PROCESSING DEPOSIT 47 .4500 21. 15 8,893.72 DEPOSITS/OTHER CREDITS 1 .4500 ,lt5 189. 23 /oW-CASH DEPOSIT CORPECTlCt-l 3 5.0000 15.00 (,,307.61 CHECKS PAID-0THER DEI1ITS 1,086 .1600 173.76 73,067.27 ZB^ SEnVICE -{lASTER 1 50.0000 50.00 21,025.35 ZBA SERVICE-SUB 2 20.0000 40.00 16,820.28 RETURN ITEM 16 5.0000 80.00 33,MO.!;5 RETUR~I ITEM RECLEAR 34 5.0000 170.00 71,48&.18 RETURN ITH1 RECLEAn SERVICE 2 .0000 .00 0.00 DEPOSITED ITEt1S 8Q .1100 9.79 4,116.76 DEP ITEMS-<::tl US 3,&89 .0450 166.02 69,812.57 DEP ITEMS-LOCAL CLEAPINGHOUSE 4,741 .0550 260.78 109.659.78 DEP ITEt1S-0THER HI DIST FED 2.600 .0700 182.00 76,532.27 DEP ITEt'IS-ALL OTHER 1,032 .0900 92.88 39,056.68 ENCODING CHARGE 235 .0000 .00 0.00 REJECTS UP TO 1.% 11 .2500 2.75 1,156.39 STOP PA'Il-1ENT 2 29.0000 58.00 24,389.40 ELECTRONIC OEBIT 6 .1500 .90 378.45 ELECTRONIC CREDIT 3 .1500 .45 189.23 CCHIERCIAL DEPS-CASH VAULT QBO-NIGHT DROP PER $100 451 .0800 36.08 15,171.89 BKG CENTER 111.1 VERIF PER $100 104 .1&00 10.64 6.997.24 caw l DEPOSIT -VAULT 19 .MOO 1.52 639.17 DEPOSIT CORRECTICt-l-CASH 2 5.0000 10.00 4,205.07 COIN PER ROLL-BKG CEIITER 48 .0800 3.84 1,614.74 NIGHT DEPOSIT ~m-STO BAG 53 5.0000 265.00 111,434.34 GENERAL ACH SERVICES CONSU1ER Ct-lE DAY CR 256 .1500 38.40 16.147.46 CONSU1ER tlAlNTENANCE 1 15.0000 15.00 6,307.61 CCNSU.IER INFUr TRANS/lIT 2 20.0000 40.00 16 ,820. 27 HIRE TRANSFER INCCX-lING OCHESTIC ~IlRE 2 10.0000 20.00 8.410.14 HIRE ADVICE-MAIL 4 2.0000 8.00 3,364.05 MANJAL HIRE ruT -C01-N::NREP 2 15.0000 30.00 12,615.21 ACCOUNT RECCX-1CILIATION SORT ONLY MAINT 3 15.0000 45.00 18,922.81 I I I I I I I I I I I I I \\\1\11\11111\1 II 1\ \ 111\ 11\ III \ 1\\\\ \ \ 1\ \\\\\1 \\\\\ 1\ 1\111111 III \1\ I I BankofAmerica ~ BANK OF AMERICA, N.A. ~~~~~ P.O. BOX 830175 ACCT ANALVSIS ~~ DALLAS, TX 75283-0175 ~ ANALYSIS STATEMENT Member FDIC I I GROUP SUMMARY ANALVSIS 00 0030 &496 2220 BANK AND COST CENTER NUMBER 075 0006734 DATE PREPARED 06-05-01 I CITY OF HINTER SPRINGS DEPOSITORY ACCOUNT 1126 ESTATE RD 434 HINTER SPRINGS FL 32708-2715 ~TH ENDING ~ONTHLY SETTLEMENT SETTLEMENT & ACCOUNT TYPE OFFICER NUMBER PAGE 05-31-01 05-31-01 DEBIT 119 3 OF 500 51 I I NJ-1BER OF LNIT SERVICE BALANCE SERVICE LNITS PRICE CHARGE REQJIRED ACCOUNT RECONCILIATION SORT ONLY ITEM 1.067 .0300 32.01 13 .460.43 HISCElLANEOJS CHECK ORDER FEE 1 62.0Z00 62.02 26,079.83 CHECK ORDER FEE 1 62.0200 62.02 26.079.83 CHECK ORDER FEE 1 62.0200 &2.02 26,079.83 CHECK ORDER FEE 1 62.0200 62.02 26.079.83 CHECK ORDER FEE 1 29.4300 29.43 12.375.51 CHECK ORDER FEE 1 29.4300 29.43 12,375.51 CHECK ORDER FEE 1 29.4300 29.43 12.375.51 CHECKS CASHED - t-nl-CUSTGtER 39 .0000 .00 0.00 CHECK PHOTO COPY~ TRLNCATED 1 3.0000 3.00 1,261.52 TOTAL SERVICE CHARGES 3.143.89 1,322,027.47 NEXT MONTH'S MAXIMUM EARNINGS CREDIT RATE: 3.15% NEXT ~ONTH'S MAXIMUM MULTIPLE: B.96.24 I I I I I THESE ACCOUNTS ARE DEBITED FOR SERVICE CHARGES AT THE GROUP LEVEL. ACCOUNTS INCLUDED IN GROUP ARE: 075 01 0012 8700 0889* 075 01 0012 8700 2433~ 075 01 0012 8700 2548't 075 01 0028 3000 6652* 075 01 0028 3000 9812* 075 01 0028 3000 9820* 075 01 0028 3166 9568* 075 01 0028 3166 9796* 075 01 0028 3166 9801* 075 01 0030 6496 2211* 075 01 0030 6496 2220* 075 01 0030 6496 2233 075 01 0030 6496 2246* 075 01 0030 6496 2259-* 075 01 0030 6496 2262* 075 01 0030 6496 2275* 075 01 0030 64% 2288* 075 01 0030 6496 2291* 075 01 0030 6496 2301 075 01 0030 6496 2327* 075 01 0030 6496 2343* 075 01 0030 6496 235&* 075 01 0030 6490 2806* 075 01 0034 4526 0266* 075 01 0034 4526 027~ 075 01 0034 4526 0282* 075 01 0034 4640 5716* 075 01 0034 4640 5729-* 075 01 0034 4640 5732* 075 01 0034 4640 594't* 075 01 0034 4640 5952* 075 01 0034 4640 5965* 075 01 0034 4640 5978* 075 01 0034 4640 5981* 075 01 0034 4640 6087* 075 01 0034 4768 4387* 075 01 0034 4768 4390>< 075 01 0034 4768 440Q;< 075 01 0034 4768 4413'1 075 01 0034 4768 442~ 075 01 0034 4768 443'1* 075 01 0034 4768 4442* I I I I If INDICATES INVESTMENT ACCOUNT I I I 111111111\11111111111\111111111111111111111111 1\11111111111111111111 I