(A)   Investment policy. It is always prudent for any public unit to have an investment policy in place for the purpose of maximum security of public funds, equitably distributing the investments and maximizing income of the governmental unit. The following policy is adopted for the Village Treasurer’s office.
   (B)   Scope of investment policy. This investment policy applies to all funds under the ownership, management and control of the village. This investment policy will apply to all existing and any new funds or temporary funds. All funds shall be placed under the management and control of the Village Treasurer. In the event this policy conflicts with any federal or state laws or regulations, including but not limited to the Public Funds Investment Act (ILCS Ch. 30, Act 235, § 2.5), the federal or state laws or regulations shall apply. In all other events, this policy shall apply.
   (C)   Objectives.
      (1)   The purpose of this investment policy is to establish a cash management and investment guideline for the stewardship of public funds under the jurisdiction of the Village Treasurer.
      (2)   The specific objectives of this investment policy shall be as follows:
         (a)   Safety of principal;
         (b)   Diversity of investments to avoid unreasonable risks;
         (c)   The portfolio shall remain sufficiently liquid to meet all operating costs which may be reasonably anticipated;
         (d)   Obtaining the highest interest rate available while ensuring the maximum safety of principal, which is left to the discretion of the Village Treasurer, including the decision whether or not the Village Treasurer will require collateralization of any deposits;
         (e)   In maintaining its investment portfolio, the Village Treasurer shall avoid any transaction that might impair public confidence in the Village Treasurer’s office;
         (f)   The Village Treasurer will first give consideration to Elwood financial institutions that have positive community relations involvement in determining the financial institution to be used as a depository;
         (g)   All funds will be invested for a period of one day or longer, depending on the requirement for the disbursement of funds; and
         (h)   All funds shall be deposited within two working days at prevailing rates or better in accordance with Illinois statutory law.
   (D)   Responsibility. All investment of funds under the control of the Village Treasurer is the direct responsibility of the Village Treasurer. The Village Treasurer shall be responsible for all transactions and shall establish a system of controls for all authorized subordinates who are directly involved in the assistance of the investment activities.
   (E)   Accounting. All investment transactions shall be recorded by the Village Treasurer of the village staff at least monthly, listing all active investments. This report will be made available to the Village Board of Trustees.
   (F)   Financial institutions. The Board of Trustees will have the responsibility to select which financial institutions will be depositories for the Village of Elwood funds.
      (1)   The Village Treasurer will take into consideration security, size, location, condition, service fees and the community relations involvement of the financial institution when choosing an institution.
      (2)   At no time will the village’s investment exceed 65% of the institution’s capital and surplus. At no time will the village’s investments exceed 70% in any one financial institution.
      (3)   All financial institutions having any type of financial relationship with the village, including but not limited to: deposits, investments and loans, are required to provide a complete and current “Call Report” required by their appropriate regulatory agency each calendar quarter within 30 days of the “Call” request date.
   (G)   Investment vehicles. The Village Treasurer will use investments approved for governmental units as set forth in the most current issue of the Illinois Compiled Statutes.
   (H)   Collateral.
      (1)   At all times, the Village Treasurer shall require that funds on deposit (checking accounts, certificates of deposit and the like) in excess of FDIC limits must be secured by some form of collateral at 110%, witnessed by a written agreement and held at an independent, third-party institution in the name of the municipality.
      (2)   Only the following collateral will be accepted:
         (a)   U.S. Government direct securities;
         (b)   Obligations of federal agencies;
         (c)   Obligations of federal instrumentalities;
         (d)   Obligations of the State of Illinois;
         (e)   Obligations of municipalities; and
         (f)   Acceptable collateral as identified in the Illinois Compiled Statutes for use by the Treasurer of the state.
      (3)   Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the possible income to be derived.
      (4)   The above standard is established as the standard for professional responsibility and shall be applied in the context of managing the Village of Elwood’s portfolio.
   (I)   Security controls. The Village Treasurer is authorized to establish financial accounts with the advice and consent of the Board of Trustees. At all times, either the Village Treasurer and/or the Village Clerk and/or President, two, jointly, will be authorized to sign on financial accounts of the village.
(Ord. 937, passed 1-21-2009)