§ 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)

§ 32.08 AUTHORIZED INVESTMENTS.

   (A)   Investments may be made in any type of security allowed in state statutes regarding the investment of public funds. Among the authorized investments are:

      (1)   Non-negotiable certificates of deposit and other collateralized evidence of deposits with qualified public depositories;

      (2)   Obligations of the United States government, its agencies and instrumentalities. However, this authorization shall specifically exclude Collateralized Mortgage Obligations (CMOs), Real Estate Mortgage Investment Conduits (REMICs), and other Principal Only (POs) and Interest Only (IOs) obligations that are secured with mortgages issued by any federal agency, instrumentality, or private firm;

      (3)   Public Treasurers’ Investment Pool established by § 17 of the State Treasurer Act, 15 ILCS 505/17; and

      (4)   Any investments authorized by the Public Funds Investment Act (30 ILCS 235.01 et seq.).

   (B)   Investments are to be made that reflect the cash flow needs of the fund type being invested.

(Ord. passed - -1999)

§ 32.09 COLLATERALIZATION.

   (A)   Funds on deposit (checking accounts, certificates of deposit, and the like) in excess of FDIC limits must be secured. So as to anticipate market changes and provide an adequate level of security for all funds, the collateralization level will be 110% of market value of principal. Acceptable collateral is limited to obligations of the United States government, its agencies, and instrumentalities.

   (B)   Collateral will always be held by an independent third party institution in the name of the village. A clearly marked evidence of ownership (safekeeping receipt) must be supplied and retained.

(Ord. passed - -1999)

§ 32.10 SAFEKEEPING AND CUSTODY.

   (A)   All security transactions, including collateral for repurchase agreements, entered into by the village shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third party custodian designated by the Village Treasurer and evidenced by safekeeping receipts and a written custodial agreement.

   (B)   Investment officials shall be bonded to protect the village against loss due to possible embezzlement and malfeasance.

(Ord. passed - -1999)

§ 32.11 DIVERSIFICATION.

   The village shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity.

(Ord. passed - -1999)

§ 32.12 MAXIMUM MATURITIES.

   (A)   To the extent possible, the village shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the village will not directly invest in securities maturing more than three years from the date of purchase.

   (B)   Reserve funds may be invested in securities not to exceed five years. The maturity of such investments are made to coincide as nearly as practicable with the expected use of the funds.

(Ord. passed - -1999)