CHAPTER 32:  INVESTMENT POLICY

Section

   32.01   Policy

   32.02   Scope

   32.03   Prudence

   32.04   Objective

   32.05   Delegation of authority

   32.06   Ethics and conflicts of interest

   32.07   Authorized financial dealers and institutions

   32.08   Authorized investments

   32.09   Collateralization

   32.10   Safekeeping and custody

   32.11   Diversification

   32.12   Maximum maturities

   32.13   Internal controls

   32.14   Performance standards

   32.15   Reporting

   32.16   Savings clause

   32.17   Investment policy adoption

§ 32.01 POLICY.

   It is the policy of the village to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

(Ord. passed - -1999)

§ 32.02 SCOPE.

   This investment policy applies to the investment of available assets of all village funds under the direct management of the Village Treasurer.

(Ord. passed - -1999)

§ 32.03 PRUDENCE.

   (A)   Investments shall be made with judgement and care, under circumstances then prevailing, that 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 probable income to be derived.

   (B)   The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

(Ord. passed - -1999)

§ 32.04 OBJECTIVE.

   (A)   Funds of the village will be invested in accordance with the Illinois Compiled Statutes, these policies, and written administrative procedures.

   (B)   The primary objective, in order of priority, shall be:

      (1)   Legality. The village’s investments will be in compliance with all federal, state, and other legal requirements;

      (2)   Safety. Investments of the village will be taken in a manner that seeks to ensure the preservation of capital and protection of investment principal;

      (3)   Liquidity. The village’s investments will remain sufficiently liquid to enable the village to meet all operating requirements that might be reasonably anticipated; and

      (4)   Yield. The village’s investments will be designed with the objective of attaining market rates of return.

(Ord. passed - -1999)

§ 32.05 DELEGATION OF AUTHORITY.

   Management and administrative responsibility for the investment program is hereby delegated to the Village Treasurer who, under the delegation of the Village Board, shall establish written procedures for the operation of the investment program.

(Ord. passed - -1999)

§ 32.06 ETHICS AND CONFLICTS OF INTEREST.

   Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions.

(Ord. passed - -1999)

§ 32.07 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS.

   (A)   The Village Treasurer will maintain a list of financial institutions authorized to provide investment services.

   (B)   In addition, a list will also be maintained of approved security brokers/dealers selected by credit worthiness.

(Ord. passed - -1999)