(A) (1) General investment guidelines. It is the expectation of the Town of Middlebury, Indiana (“Town”) to have it public funds invested in a manner which will provide the highest investment return, with the maximum security, while meeting the cash flow demands of the Town, while conforming to the statutes of the State of Indiana, including, but not limited to, I.C. 5-13-9.
(2) Standard of investment practice and review. Investments of the town shall be made by the Middlebury Clerk-Treasurer consistent with the judgement and care under the circumstances then prevailing, which a person of prudence, discretion, and intelligence exercises in the management of one's own affairs, not for speculation, but for investment, considering the probable safety of one's capital, as well as the probable income to be derived, subject to the deposit investment provisions set forth in I.C. 5-13-9.
(3) Investment policy. It is the policy of the town to have its public funds invested consistent with the following standards:
(a) All investments of the public funds of the Town must be made with the approval of the Middlebury Clerk-Treasurer.
(b) All investments of the public funds of the town must be made in accordance with I.C. 5-13.
(c) The investment of the public funds of the town may be made with a stated final maturity that is for more than two years but not more than five years after the date of purchase or entry into a repurchase agreement.
(d) The total investments outstanding for the town which are more than two years but not more than five years in maturity must be limited to no more than 25% of the total portfolio of public funds invested by the town, including balances in transaction accounts.
(e) The policy contained herein shall be in effective January 1, 2020 and shall expire on December 31, 2023.
(4) Investment compliance. An investment that complies with this section when the investment is made remains legal even if the investment policy in this section has expired or a subsequent decrease in the total portfolio of public funds invested by the town, including balances in transaction accounts, causes the percentage of investments outstanding which are more than two years but not more than five years in maturity to exceed 25% of the total portfolio of public funds invested by the town.
(5) Investment contracts. The Middlebury Clerk-Treasurer may contract with a federally regulated investment advisor or other institutional money manager to make investments under this Ordinance as permitted by I.C. 5-13-9-5.7
(6) Investment proceeds. The Middlebury Clerk-Treasurer shall have discretion in distributing the interest or other proceeds derived from an investment into the Middlebury General Fund or the fund from which the investment was derived, subject to the modifications and limitations provided by I.C. 5-13-9-6, as amended. Specific modifications and limitations of I.C. 5-13-9-6 include the following:
(a) Interest from investments of funds of a political subdivision that are traceable to United States government funds must be receipted to the fund of which they are a part, if required by federal law or regulation.
(b) Interest from investment of funds controlled by court orders must be receipted to that fund unless otherwise designated by the court order.
(c) Interest derived from the investment of the proceeds from bonded indebtedness or local tax levies may be applied to the appropriate redemption bond interest or sinking fund for the bonded indebtedness.
(d) Interest earned on the investment of meter deposits of a municipally owned utility may be applied to and used in the operation or depreciation fund of the municipally owned utility as determined by its governing body.
(B) Pursuant to I.C. 5-13-9-5, the Town Council hereby authorizes the investing officer of the town to invest in certificates of deposit of depositories that have not been designated by the Town Council but have been designated by the State Board of Finance as a depository for state deposits under I.C. 5-13-9.5. This authorization expires one year after the adoption date.
(Res. 2016-06, passed 8-15-2016; Ord. 627, passed 12-16-2019; Res. 2019-03, passed 6-3-2019)