(A) Scope. This investment policy supersedes any previous investment policy and applies to all financial assets of the county.
(B) Policy. It is the policy of the county 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 county and conforming to all state and local statutes governing the investment of public funds.
(C) Prudence.
(1) The investments shall be made with the judgment and care under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs; not the speculation, but for investment; considering the probable safety of their capital as well as the probable income to be derived.
(2) The standard of prudence to be used by the Treasurer shall be the prudent person standard and shall be applied in the context of managing the overall investment.
(3) Under no circumstances may the Treasurer invest in a derivative or other funds prohibited by law. The Treasurer shall also not make investments which he or she does not reasonably believe can be held until the maturity date, or leverage any investment.
(D) Objectives. The primary objectives, in priority order, of the county’s investment activities shall be as follows.
(1) Safety. Safety of principal is the foremost objective of the investment program. Investments of the county’s funds shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
(2) Return on investment. The county’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the county’s investment risk constraints and the cash flow characteristics of the portfolio.
(3) Local institution. Local institutions maintaining an office in Indiana shall be given preference when, in the judgment of the Treasurer, they are equally competitive with other institutions.
(E) Authorized investments. The Treasurer is hereby authorized to invest the portfolio according to the state statutes governing public funds as stated in I.C. 5-13, as stated now and as amended in the future. As stated in I.C. 5-13-9-2, allowable securities are:
(1) Securities backed by the full faith and credit of the United States Treasury, or fully guaranteed by the United States, and issued by any of the following:
(a) The United States Treasury;
(b) A federal agency;
(c) A federal instrumentality; or
(d) A federal government sponsored enterprise;
(2) Securities fully guaranteed and issued by any of the following:
(a) A federal agency;
(b) A federal instrumentality; or
(c) A federal government sponsored enterprise; and
(3) Municipal securities issued by an Indiana local government entity, a quasi- governmental entity related to the state, or a unit of government, municipal corporation, or special taxing district in Indiana, if the issuer has not defaulted on any of the issuer’s obligations within the 20 years preceding the date of the purchase.
(F) Final maturity. In accordance with I.C. 5-13-9-5.7, the investment of public funds in maturities of greater than two years, but no more than five years, shall be limited to not more than 25% of the total portfolio of public funds invested by the county, including balances in transaction accounts. The remainder of the portfolio shall mature no longer than two years from the investment settlement date.
(Council Ord. 11, passed 12-12-2017)