Resolution 1999-40 STATE OF ILLINOIS )
)ss
COUNTY OF KENDALL )
RESOLUTION NO: 1999- ud
RESOLUTION APPROVING UNITED CITY
OF YORKVILLE INVESTMENT POLICY
WHEREAS, the Illinois Legislature has enacted a Public Law requiring Municipalities to
have a Uniform Investment Policy in place by the conclusion of the 1999 calender year; and
WHEREAS,an Investment Policy has been presented and reviewed by the City Council and
Mayor of the United City of Yorkville based upon recommendations of Committees of the City
Council and input from the City Treasurer, as well as consideration of a Model Investment Policy
promulgated by the Illinois Municipal League; and
WHEREAS,the City Council is required by Public Law to enact said Policy promptly, and
deems the new Investment Policy to both be in compliance with Illinois Compiled Statutes and in
the best interest of the City and its Citizens to provide prudent investment opportunities for
Municipal Funds:
NOW THEREFORE BE IT RESOLVED BY THE UNITED CITY OF YORKVILLE that
the Investment Policy attached hereto and incorporated herein as Exhibit "A" is adopted as the
Investment Policy for the UNITED CITY OF YORKVILLE, as required by Illinois Compiled
Statutes, and from time to time hereinafter to be amended by the City Council to be in compliance
with Illinois Compiled Statutes.
1
BURTON CALLMER DAVE DOCKSTADER
RICHARD STICKA MIKE ANDERSON
VALERIE BURD ROSE SPEARS
LARRY KOT THOMAS SOWINSKI
APPROVED by me,as Mayor of the United City of Yorkville,Kendall County,Illinois,this
fD y of December, A.D. 1999.
G
MAYOR, ARTHUR F. PROCHASKA, JR.
PASSED by the City Council of the United City of Yorkville,Kendall County,Illinois this
/ =tea Y of December A.D. 1999.
Attest: Oav:,,,..a� -K .
CITY CLERK, DEBORAH SIMMONS
Law Offices of Daniel J. Kramer
1107A South Bridge Street
Yorkville, Illinois 60560
630-553-9500
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INVESTMENT POLICY
United City of Yorkville.Illinois
1.01 Policy The portfolio should be reviewed periodically
as to its effectiveness in meeting the entity's
It is the policy of the United City of Yorkville needs for safety,liquidity,rate of return,
to invest public funds in a manner which will diversification and its general performance.
provide the,highest investment return with the
maximum security while meeting the daily cash 1.05 Delegation of Authority
flow demands of the entity and conforming to
all state and local statutes governing the Management and administrative responsibility
investment of public funds. for the investment program is hereby
delegated to the Treasurer who,with
1.02 Scope the approval of the City Council, shall
This policy includes all funds governed by the establish written procedures for the operation
City Council. of the investment program.
1.03 Prudence 1.06 Ethics and Conflicts of Interest
Investments shall be made with judgment and Officers and employees involved in the
care,under circumstances then prevailing, investment process shall refrain from personal
which persons of prudence, discretion and business activity that could conflict with the
intelligence exercise in the management of their proper execution and management of the
own affairs,not for speculation,but for investment program,or that could impair their
investment,considering the probable safety of ability to make impartial decisions.
their capital,as well as the probable income to
be derived. 1.07 Authorized Financial Dealers and Institutions
The standard of prudence to be used by The Treasurer shall maintain a list of financial
investment officials shall be the "prudent institutions authorized to provide investment
person" standard and shall be applied in the services.
context of managing an overall portfolio.
With the exception of the institution which
maintains the Illinois Public Treasurers Investment
Pool, financial institutions shall be located in the
1.04 Objective City of Yorkville,unless they are specifically
approved by the City Council.
The primary objective,in order of priority, shall 1.08 Authorized and Suitable Investments
be:
•Legality- conformance with federal, Investments may be made in savings,checking
state and other legal money market accounts,certificates of deposit and
requirements the Illinois Public Treasurers Investment Pool.
•Safety- preservation of capital and Any other type of investment will require City
protection of investment Council approval.
principal
Liquidity- maintenance of sufficient Investments shall be made that reflect the cash
liquidity to meet operating flow needs of the fund type being invested. All
requirements investments shall be as allowed for in Illinois statutes
- Yield- attainment of market rates regarding the investment of public funds.
of return
1.09 Collateralization
Funds on deposit(checking accounts,
certificates of deposit, etc.)in excess of FDIC
INVESTMENT POLICY-PAGE I limits must be secured by some form of
collateral,witnessed by a written agreement and accounting
held at an independent-third party institution Custodial safekeeping
in the name of the municipality. Written confirmation of telephone
transactions for investments and wire
1.10 Safekeeping and Custody transfers
All security transactions, including collateral 1.14 Performance Standards
for repurchase agreements, entered into by the
United City of Yorkville, shall be conducted This investment portfolio shall be managed in
on a delivery-versus-payment(DVP)basis. accordance with the parameters specified within
Securities will be held by an independent third this policy.The portfolio shall obtain a
party custodian designated by the Treasurer comparable rate of return during a
and evidenced by safekeeping receipts and a market/economic environment of stable interest
written custodial agreement. rates. Portfolio performance shall be
compared to the current Illinois Public Treasurer's
Investment Pool rate.
1.11 Diversification
1.15 Reporting
The City shall diversify its investments to the
best of its ability based on the type of funds The Treasurer shall prepare an investment report
invested and the cash flow needs of those monthly.The report shall provide to the City
funds. Diversification can be by type of Council and available on request. The report shall be
investment, number of institutions invested in a format suitable for review by the public. An annual
in, and length of maturity. report shall also be provided to the Council
1.12 Maximum Maturities 1.16 Marking to Market
To the extent possible,the City shall attempt A statement of the market value of the portfolio
to match its investments with anticipated cash. shall be issued to the City Council quarterly.
flow requirements.Unless matched to a specific
cash flow,the United City of Yorkville will 1.17 Investment Policy Adoption
not directly invest in securities maturing more
than five years from the date of purchase. The investment policy shall be adopted by the
City Council. The policy shall be reviewed
Reserve funds may be invested in securities on an annual basis by the Treasurer and any
exceeding five years if the maturity of such modifications made thereto must be approved
investments are made to coincide as nearly as by the City Council.
practicable with the expected use of the funds.
1.13 Internal Control
The Treasurer is responsible for establishing
and maintaining an internal control structure
designed to insure that the invested assets of the
city are protected from loss,theft or misuse. The
internal control structure shall be designed to
provide reasonable assurance that these
objectives are met.The internal controls shall
address the following points:
Control of collusion
• Separation of transaction authority from
INVESTMENT POLICY-PAGE 2