Loading...
HomeMy Public PortalAbout1992-06, City of Riverdale Investment Policy !, RESOLUTION 1992 - 6 TOWN OF RIVERDALE INVESTMENT POLICY SECTION 1 - SCOPE OF INVESTMENT POLICY The Investment Policy of the Town of Riverdale 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 Town of Riverdale. Each investment made pursuant to this Investment Policy must be authorized by applicable law and this written Investment 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 452. Upon passage and upon future amendment, if any, copies of this Investment Policy shall be delivered to all the following: 1. The governing body of the Town of Riverdale. 2. All depository institutions or fiduciaries for public funds of the Town of Riverdale. 3. The auditor engaged to audit any fund of the Town of Riverdale. SECTION 2 - DELEGATION OF AUTHORITY In accordance with Section 452. 10( 1) , the responsibility for conducting investment transactions resides with the Treasurer of the Town of Riverdale. Only the treasurer and those authorized by resolution may invest funds and a copy of any empowering resolution shall be attached to this investment policy. The Town of Riverdale shall not enter into any contract or agreement with outside persons regarding: 1. Investing public funds. 2. Advising on the investment of public funds. 3. Directing the deposit or investment of public funds. 4. Acting in a fiduciary capacity for this public body. The Treasurer of the Town of Riverdale and all employees authorized to place investments shall be bonded in the amount of $5 , 000. The primary objectives, in order of priority, of all investment activities involving the financial assets of the Town of Riverdale 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 3 - PRUDENCE The Treasurer of the Town of Riverdale, when investing or depositing public funds, shall exercise the care, skill, 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 2 investment objectives. This standard requires that when making investment decisions, the Treasurer shall consider the role that the investment or deposit plays within the portfolio of assets of the Town of Riverdale and the investment objectives stated in Section 2. SECTION 4 - INSTRUMENTS ELIGIBLE FOR INVESTMENT Assets of the Town of Riverdale may be invested in the following: Interest bearing savings accounts, interest bearing money market accounts, and interest bearing savings accounts at any bank 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 shall be properly declared as a depository by the governing body of the Town of Riverdale. Deposits in any financial institution shall not exceed the limit approved by the governing body of the Town of Riverdale. Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions approved and secured pursuant to chapter 453. All instruments eligible for investment are further qualified by all other provisions of this Investment Policy, including Section 6 investment maturity limitations. SECTION 5 - 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 Treasurer may invest funds of the Town of Riverdale that are not identified as Operating Funds in investments with maturities longer than three hundred ninety-seven (397) days. However, all investments of the Town of Riverdale shall have maturities that are consistent with the needs and use of the Town. SECTION 7 - SAFEKEEPING AND CUSTODY All invested assets of the Town of Riverdale involving the use of a public funds custodial agreement, as defined in section 452. 10, shall comply with all rules adopted pursuant to Section 452. 10(C) . 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. Mayor ATTEST: City Clerk Date