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