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HomeMy Public PortalAboutResolutions-2011-03 (2)RESOLUTION 2011 -03 A RESOLUTION APPRVOING THE 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), WHEREAS, the City of Tiffin desires to review Investment Policy every year and purpose to determine if Policy is current with Iowa Code, WHEREAS, said Resolution will remain a permanent attachment to the Investment Policy, until at such time that changes are appropriate and approved by City Council of Tiffin, NOW, THEREFORE, BE IT RESOLVED that the City's Investment Policy be accepted as written. Council person Chris Ball introduced Resolution 2011 -03 and made motion for approval and Council person Travis Weipert seconded motion. Ayes: Chris Ball, Jim Bartels, Mark Petersen, Travis Weipert Nay: None Absent: Mike Gericke Passed and adopted this 9th day of February 2011. WHEREUPON, with Four votes for approval, Mayor Royce Phillips declared that the RESOLUTION 2011 -03 A RESOLUTION APPRVOING THE CITY'S INVESTMENT POLICY be adopted and signified his approval of the same by affixing his signature thereto. ATTES Ruth Demuth, City Clerk Signed: Royce W hillips, 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 Treasurer 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 12B.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 2011 -03) 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 the City. 2. Advising on the investment of public funds the City. 3. Directing the deposit or investment of public fund 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. Page Two of Four: 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: Hills Bank and Trust $1,200,000 Solon State Bank $1,200,000 U of I Community Credit Union $1,200,000 • 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. Page Three of Four: SECTION 8. SAFEKEEPING AND CUSTODY All invested assets of the City involving the use of a public funds custodial agreement, as defined in Iowa Code section 12B.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 9th day of February, 2011 by Resolution 2011 -03 by approval and adoption of the City Council of the City of Tiffin. SUDAS (Statewide Urban Design and Specifications) Resolution 2011 -03 affixed as a permanent attachment to this Investment Policy and shall remain in effect until so changed by will of the City Council of the City of Tiffin. Such change or changes shall be approved by resolution. Signed: ATTEST: Royce W. Phillips, Mayor Ruth Demuth, City Clerk / Treasurer Christopher J. Ball, Mayor pro tem City Seal