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RESOLUTION NO. 95-75
<br />Investment Policy
<br />Generally. The County approved Resolution No. 89-76 on August 1, 1989, authorizing the
<br />investment of excess funds not immediately needed by the County in those investments allowed by Section
<br />125.31, Florida Statutes, which are U.S. direct obligations, U.S. agency obligations, certificates of
<br />deposit, the Local Government Surplus Funds Trust Fund, and repurchase agreements backed by any of
<br />the above instruments. The County approved Resolution 93-136 on August 10, 1993, adding the Florida
<br />Counties Investment Trust as an authorized investment. During FY 1.994 these investments had yields
<br />ranging from 2.73 % to 8.75 %.
<br />Investment in Mortgage Backed Securities. The County has invested a significant amount of its
<br />investment portfolio in mortgaged -back securities, as noted - in the notes to the County's financial
<br />statements included herein as Appendix A. At September.30, 1994, almost $54 million of the County's
<br />approximate $70 million portfolio were invested in U.S. Government agency securities consisting of
<br />collateralized mortgage obligations ("CMO's"), adjustable rate mortgage pools ("ARMY) and interest -
<br />only strips ("IO's"), the market value of all of which, while categorized for accounting purposes as
<br />Category 1 investments, is sensitive to market interest rate fluctuations. At September 30, 1994 the
<br />market value of these securities was approximately $3 million below book value. Since September 30,
<br />1994, the County has liquidated all of the IO's and a portion of the CMO's such that, presently,
<br />mortgage-backed securities represent approximately $45 million of the County's approximate $88 million
<br />portfolio. The County is liquidating the mortgage-backed securities on a continuing basis as the market
<br />permits, without suffering material loss. The decline in market value of these securities has not affected,
<br />and is not expected to affect, the County's cash flow. None of the County's investments are leveraged.
<br />The County's current investment practice is to invest in the Local Government Surplus Funds
<br />Trust Fund administered by the Florida State Board of Administration and short term U.S. Treasury
<br />Securities.
<br />Financial Statements and Annual Audit
<br />Florida law requires that the financial statements of the County be audited on an annual basis.
<br />Following the end of each fiscal year, a Comprehensive Annual Financial Report (the "CAFR") is
<br />prepared by the Finance_ Department of the County, under the supervision of the Clerk of the Circuit
<br />Court.
<br />The, general purpose financial statements, as well as the combining, individual fund, account
<br />group and supporting financial statements of the County, (collectively the "Financial Statements")
<br />included in the CAFR, are audited by an independent certified public accounting firm on an annual basis.
<br />The County has selected Coopers & Lybrand, LLP, for such services. The County's Financial Statements
<br />for the fiscal year ended September 30, 1994, have been included herein as Appendix A, in reliance upon
<br />the audit thereof by Coopers & Lybrand, LLP, certified public accountants.
<br />VALIDATION
<br />Validation of the Bonds is not required under Florida law and has not been sought under Chapter
<br />75, Florida Statutes. Under Section 100.321, Florida Statutes, the time period within which a suit must
<br />be filed by a taxpayer challenging the results of the bond referendum has passed. The County Attorney
<br />is of the opinion that the bond referendum held November 3, 1992, was duly called and held, and the
<br />authority for the issuance of the Bonds and the levying of ad valorem taxes unlimited as to rate and
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<br />June 20, 1995
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