HomeMy Public PortalAboutResolutions-2023-002RESOLUTION NO. 2023-002
A RESOLUTION NAMING DEPOSITORIES FOR CITY FUNDS AND APPRVOING
CITY'S INVESTMENT POLICY
WHEREAS, the City of Tiffin desires to implement the City's Investment Policy in
accordance to Iowa Code Chapter 12B.10(1); and,
WHEREAS, the City of Tiffin desires to review Investment Policy (attached) every other
year to determine if the Policy is current with Iowa Code; and,
WHEREAS, said Resolution will remain a permanent attachment to the Investment
Policy until at such time it changes and is approved by City Council of Tiffin,
NOW, THEREFORE, BE IT RESOLVED that the City's Investment Policy be accepted
as written.
On the 3rd day of January, at a regular meeting of the Tiffin City Council, Tiffin, Iowa,
Council person Orris introduced RESOLUTION NO. 2023-002, A RESOLUTION
NAMING DEPOSITORIES FOR CITY FUNDS AND APPROVING CITY'S
INVESTMENT POLICY and made motion for approval and Council person Schnedler
seconded motion.
Ayes: Schnedler, Limkemann, Havens, Orris, Olney.
Nays: None.
Absent: None.
Whereupon five Council members were present and voted approval, Mayor Berner
declared that the RESOLUTION NO. 2023-002, A RESOLUTION NAMING
DEPOSITORIES FOR CITY FUNDS AND APPROVING CITY'S INVESTMENT
POLICY to be adopted and signified his approval of the same by affixing his signature
thereto.
Passed by the City Council on the 3rd day of January, 2023.
Attest:
a, City Clerk
Signed:
Steven L. Berner, Mayor
CITY OF TIFFIN
INVESTMENT POLICY
SECTION 1. SCOPE OF INVESTMENT POLICY
The Investment Policy, (hereinafter "Policy"), of the City of Tiffin, Iowa (City) shall apply to all
operating funds, bond proceeds and other funds and all investment transactions involving
operating funds, bond proceeds and other funds accounted for in the financial statements of the
City. Each investment made pursuant to this Investment Policy must be authorized by
applicable law and this written Policy.
The investment of bond funds or sinking funds shall comply not only with this investment policy,
but also be consistent with any applicable bond resolution.
This Investment Policy is intended to comply with Iowa Code Chapter 12B and 12C.
Upon passage and upon future amendment, if any, copies of this Investment Policy shall be
delivered to all of the following:
1. The governing body or officer of the City to which the Investment Policy applies.
2. All depository institutions for public funds of the City.
3. The auditor engaged to audit any fund of the City.
SECTION 2. DELEGATION OF AUTHORITY
In accordance with Iowa Code section 12B.10(I), the responsibility for conducting investment
transactions resides with the Investment Committee, which consists of three members: the
Mayor, the City Clerk of the City and one designated City Council member so named by the
majority of the sitting City Council members. The Investment Committee are authorized to
invest public funds as necessary to obtain the maximum investment allowable per Iowa Code
126.10(1) and in permitted investment funds and if necessary of expanding investments to
additional depositories.
Only the Investment Committee as authorized by resolution may invest public funds and a copy
of any empowering resolution (Resolution 2023-002) shall be attached to this Investment Policy.
Said Resolution will be reviewed every two years or as soon as deemed necessary by
Investment Committee.
The Investment Committee at such time deems necessary may solicit the use of an outside
Investment Advisor for Investments. Before committing to a contract with an outside source,
approval will be necessary in formal action from the majority of the sitting City Council members.
The records of investment transactions made by or on behalf of the City are public records and
are the property of the City.
The Investment Committee shall establish a written system of internal controls and investment
practices.
The controls shall be designed to prevent losses of public funds, to document the Investment
Committee is responsible for elements of the investment process and to address the capability
of investment management.
1. Investing public funds of the City.
2. Advising on the investment of public funds of the City.
3. Directing the deposit or investment of public fund of the City.
4. Acting in a fiduciary capacity for the City.
A Bank, Savings and Loan Association or Credit Union providing only depository services shall
not be required to provide an audited financial statement and related report on internal control
structure.
Members of the Investment Committee shall be covered by Government Crime Coverage for
Employee Theft, Forgery or Alteration, Computer Fraud, and Funds Transfer Fraud. Such
policy is in effect to be renewable every year as of April 1st
SECTION 3. OBJECTIVES OF INVESTMENT POLICY
The primary objectives, in order of priority, of all investment activities involving the financial
assets of the City shall be the following:
1. Safety: Safety and preservation of principal in the overall portfolio is the foremost
investment objective.
2. Liquidity: Maintaining the necessary liquidity to match expected liabilities is the
second investment objective.
3. Return: Obtaining a reasonable return is the third investment objective.
SECTION 4. PRUDENCE
The Investment Committee when investing or depositing public funds, shall exercise the care,
prudence and diligence under the circumstances then prevailing that a person acting in a like
capacity and familiar with such matters would use to attain the Section 3 investment objectives.
This standard requires that when making investment decisions, the Investment Committee shall
consider the role that the investment or deposit plays within the portfolio of the City assets of
and the investment objectives stated in Section 3.
When investing assets of the City for a period longer than two (2) years, the Investment
Committee shall request competitive investment proposals for comparable credit and term
investments from a minimum of three (3) investment providers. The Investment Committee shall
make decisions to invest public funds in additional depositories as deems necessary to comply
with Section 3, 4 and 5 per Iowa Code section 12B.10(I),
SECTION 5. INSTRUMENTS ELIGIBLE FOR INVESTMENT
Assets of the City may be invested in the following:
• Interest bearing savings accounts, interest bearing money market accounts, and interest
bearing checking accounts at any bank, savings and loan association or credit union in
the State of Iowa. Each bank must be on the most recent Approved Bank List as
distributed by the Treasurer of the State of Iowa or as amended as necessary by notice
inserted in the monthly mailing by the Rate Setting Committee. Each financial institution
annually shall be properly declared as a depository by the governing body of the City.
Deposits in any financial institution shall not exceed the amount approved by the
governing body of the City.
• Current depositories on record approved by the City Council are not to exceed maximum
limits of:
o Hills Bank and Trust — $15,000,000
o Solon State Bank — $15,000,000
o GreenState Credit Union — $15,000,000
o Farmers State Bank - $15,000,000
• Obligations of the United States government, its agencies and instrumentalities.
• Certificates of deposit and other evidences of deposit at federally insured Iowa depository
institutions approved and secured pursuant to Iowa Code chapter 12C.
• Iowa Public Agency Investment Trust ("IPAIT").
All instruments eligible for investment are further qualified by all other provisions of this Policy,
including Section 7.
SECTION 6. PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES
Assets of the City shall not be invested in the following:
1. Reverse repurchase agreements.
2. Futures and options contracts.
Assets of the City shall not be invested pursuant to the following investment practices:
1. Trading of securities for speculation or the realization of short-term trading gains.
2. Pursuant to a contract providing for the compensation of an agent or fiduciary based
upon the performance of the invested assets.
SECTION 7. INVESTMENT MATURITY LIMITATIONS
Operating Funds must be identified and distinguished from all other funds available for
investment. Operating Funds are defined as those funds which are reasonably expected to be
expended during a current budget year or within fifteen months of receipt.
All investments authorized in Section 5 are further subject to the following investment maturity
limitations:
1. Operating Funds may only be invested in instruments authorized in Section 5 of this
Investment Policy that mature within three hundred ninety-seven (397) days.
2. The Investment Committee may invest funds of the City that are not identified as
Operating Funds in investments with maturities that may be three months up and
including to more than three hundred ninety-seven days (397) days. However, all
investments of the City shall have maturities that are consistent with the needs and use
of the City.
SECTION 8. SAFEKEEPING AND CUSTODY
All invested assets of the City involving the use of public funds custodial agreement, as defined
in Iowa Code section 126.10C, shall comply with all rules adopted pursuant to Iowa Code
section 12B.10C. All custodial agreements shall be in writing and shall contain a provision that
all custodial services be provided in accordance with the laws of the state of Iowa. All invested
assets of the City for physical delivery shall be secured by having them held at a third -party
custodian. All purchased investments shall be held pursuant to a written third party custodial
agreement requiring delivery versus payment and compliance with all rules set out in this
Section 9.
SECTION 9. ETHICS AND CONFLICT OF INTEREST
The members of the Investment Committee 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. Any personal investment or loans in or with any entity
that City has declared as a depository or regularly conducts investment business with shall be
disclosed in writing to the sitting City Council of the City.
SECTION 10. REPORTING
The Investment Committee shall submit an investment report at least monthly that summarizes
recent market conditions and investment strategies employed since the last investment report.
The investment report shall set out the current portfolio in terms of maturity, rates of return and
other features and summarize all investment transactions that have occurred during the
reporting period and compare the investment results with the budgetary expectations.
SECTION 11. POLICY REVIEW AND AMENDMENT
This Policy shall be reviewed every two (2) years or more frequently as appropriate. Notice of
amendments to the Policy shall be promptly given to all parties noted in Section One.
Passed this 3rd day of January, 2023, by Resolution 2023-002 by approval and adoption of the
City Council of the City of Tiffin.
Attest: `..
Abigail Hq a, City Clerk
Signed:
Steven L. Berner, Mayor