(A) Creation of office. There is hereby created the office of City Treasurer.
(B) Bond. The Treasurer, before entering upon the duties of his office, shall execute a bond to the city, in the penal sum of $25,000, with surety to be approved by the Council, conditioned as required by law, and shall take the oath prescribed for other officers.
(C) Monthly statements. The Treasurer shall receive all moneys belonging to the city, and shall render at the end of each month, and oftener if required, a statement under oath to the Commissioner of Accounts and Finances, showing the state of the treasury at the date of such account, and the balance of the money in the treasury. Such statement shall set forth all the moneys received by him, and from whom, and on what account they shall have been received; also, all moneys paid out by him and on what account they shall have been paid.
(D) Books of account. The Treasurer shall cause to be kept books of account in such manner as to show with entire accuracy all moneys received by him, and from whom, and on what account they shall have been received; and all moneys paid out by him and on what account they shall have been paid; and in such manner that such books may be readily understood and investigated. Such books and all papers and files of his office shall be at all times open to the examination of the Mayor or any commissioner.
(E) Deposit of funds. The Treasurer shall deposit the funds of the city in such bank or banks as may be designated according to law, and shall make to the Commissioner of Accounts and Finances a monthly report under oath for each calendar month of all interest on moneys received by or credited to the Treasurer or to the city, by any such bank in which is deposited any moneys of the city, including trust funds and special assessments.
(F) Additional duties. The Treasurer shall perform such other duties usually incident to the office of Treasurer as may from time to time be required by the Mayor or any commissioner.
(G) Electronic pay. The Treasurer is authorized to participate in the Electronic Payment Services Program offered by the Office of the State Treasurer subject to rules as time to time adopted by the City Council.
(H) Investment policy.
(1) Purpose. This investment policy is adopted for the purposes of guarding funds, equitably distributing the investments and maximizing income for of public funds under the jurisdiction of the City of Marseilles. Investment requirements under The Illinois Compiled Statutes will take precedence except where this policy is more restrictive wherein this policy will take precedence.
(2) Scope. This investment policy applies to the investment activities of all funds under the control of the Treasurer as well as funds held by other entities under the control and jurisdiction of the City of Marseilles. This investment policy will also apply to any new funds or temporary funds placed under the jurisdiction of the City of Marseilles.
(3) Objectives. The specific objectives of this investment policy in order of priority are as follows:
(a) Safety. The security of monies, whether on hand or invested shall be the primary concern of the City of Marseilles in selecting depositories or investments.
(b) Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements which might be reasonably anticipated.
(c) Return. The City of Marseilles shall seek to attain a market average or better rate of return throughout budgetary and economic cycles, taking into account risk, constraints, cash flow, and legal restrictions on investment.
(d) Local considerations. The City of Marseilles shall have preference to depositories located within the city provided that the afore-described objectives are met, and such investments would be in compliance with all other conditions and limitations of this investment policy; however, the City of Marseilles may approve qualified depositories regardless of location.
(4) Guidelines. To assist in attaining the stated objectives, the following guidelines shall be observed:
(a) Investments shall be undertaken in a manner that seeks to insure preservation of capital in the overall portfolio. To avoid unreasonable risks diversification of investments is required.
(b) The portfolio should remain sufficiently liquid to meet operating requirements, which may be reasonably anticipated. Cash flows shall be reviewed quarterly.
(c) To maximize earnings, all funds shall be deposited/invested within two working days at prevailing rates or better.
(d) All investments shall be selected on the basis of competitive bids.
(5) Diversification. To avoid unreasonable risks diversification of the investment portfolio shall be consistent with the objectives in the investment policy. Commercial paper shall not exceed 10% of the investment portfolio.
(6) Investment vehicles. The City of Marseilles will use investments approved for governmental units as set forth in the most current issue of the Illinois Compiled Statutes. A summary of allowable securities follows:
(a) Notes, bonds, certificates of indebtedness, treasury bills, or other securities, which are guaranteed by the full faith and credit of the United States of America.
(b) Bonds, notes, debentures, or other similar obligations of the United States of America or its agencies.
(c) Interest bearing accounts, certificates of deposit or interest bearing time deposits or any other investment constituting direct obligations of any bank as defined by the Illinois Banking Act.
(d) In money market mutual funds registered under the Investment Company Act of 1940.
(e) Short term obligations of United States Corporations are allowable with certain restrictions. It is currently the policy of the City to not use this investment option.
(7) Responsibility. All investment of funds under the control of the City of Marseilles is the direct responsibility of the Treasurer of the City of Marseilles. The Treasurer shall be responsible for all transactions and shall establish a system of controls of the activities of all subordinates who are directly involved in the assistance of such investment activities. The Treasurer shall report directly to and perform under the supervision of the Commissioner of Accounts and Finances.
(8) Performance measures (bench mark). The use of U.S. Treasury bills, average Fed Fund rate, Illinois Funds, or other stable markets can be used to determine whether market yields are being achieved.
(9) Periodic review. The Treasurer should establish annual independent review for internal control, which assures compliance within the investment policy. This will be accomplished with external auditors.
(10) Accounting. All investment transactions shall be recorded by the Treasurer or the Treasurer's staff. A report will be generated, at least monthly, listing all active investments. Information regarding securities in portfolio by class or type, book value, interest earned and market value as of report date. This report shall be made available to the City Council.
(11) Financial institutions. The City Council will have the sole responsibility to select from time to time which financial institutions will be depositories for the City of Marseilles. The City of Marseilles will take into consideration security, size, location, condition, service fees and the community relations involvement of the financial institution when choosing a financial institution. At no time will the City of Marseilles investments exceed 65% of the financial institutions capital and surplus. All financial institutions having any type of financial relationships: deposits, investments, loans, etc. are required to provide a complete and current “call report” required by their appropriate regulatory authority each calendar quarter within 30 days of the “call” request date.
(12) Collateral.
(a) At all times the City of Marseilles will require that deposits in excess of 35 % of the capital and surplus of a financial institution will be collateralized. The City of Marseilles may request collateral for any part of deposits in financial institutions when the city determines it to be in the best interest of safeguarding the funds on deposit. All funds or deposit in excess of FDIC insured limits must be secured by some form of collateral. When collateral is required, 110% of the deposit will be required. Only the following collateral will be accepted:
1. U.S. Government direct securities;
2. Obligations of Federal Agencies;
3. Obligations of Federal Instrumentality's;
4. Obligations of the State of Illinois;
5. Obligations of the City of Marseilles; and,
6. Acceptable collateral as identified in the Illinois Compiled Statutes for use by the Treasurer of the State of Illinois.
(b) Third party safekeeping is required for all collateral. To accomplish this the securities will be held at a safekeeping depository as approved from time to time by the City of Marseilles. Safekeeping will be documented by an approved written agreement. Substitution, exchange or release of securities held in safekeeping may be done upon two days prior written notice to the City of Marseilles. When collateral is extended, the City of Marseilles should receive a copy of the financial institutions board minutes, indicating the Board of Director's approval.
(13) Safekeeping of securities. Securities, unless held physically by the City of Marseilles, require third party safekeeping. The City of Marseilles will have the sole responsibility for selecting safekeeping agents. Safekeeping will be documented by an approved written agreement.
(14) Indemnification.
(a) Investments shall be made with judgment and care, under circumstances then prevailing, which person 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.
(b) The above standard is established as the standard for professional responsibility and shall be applied in the context of managing the city's portfolio. Pursuant to the Public Funds Investment Act at ILCS Ch. 30, Act 235, § 2.5 and other provisions included in that Act, along with all other Statutes and Constitutional provisions regarding conflicts of interest and ethical considerations. The City of Marseilles and employees of the city acting in accordance with this investment policy and procedures as have been or may be established and exercising due diligence shall be relieved of personal liability for an individual security's credit risk or market changes.
(15) Security controls. Only the City of Marseilles Treasurer together with the Commissioner of Accounts and Finances should be authorized to establish financial accounts for the City of Marseilles. At all times either the City Treasurer, singly or signatories as designated by the city should be authorized to sign on financial accounts of the City of Marseilles.
(16) Amendment. This policy may be reviewed from time to time and revised upon approval of the Council of the City of Marseilles.
(‘72 Code, § 3.10) (Am. Ord. 1439, passed 4-20-11; Am. Ord. 1684, passed 10-3-18)