The primary objectives, in order of priority, shall be:
(A) Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the portfolio;
(B) Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated;
(C) Return on investments. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs;
(D) Delegation of authority. Management and administrative responsibility for the investment program is hereby delegated to the Treasurer or equivalent who, under the direction of the Board of Trustees, shall establish written procedures for the operation of the investment program. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, collateral/depository agreements, and banking service contracts;
(E) 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;
(F) Authorized financial dealers and institutions. The Board of Trustees will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security brokers/dealers selected by creditworthiness. No public deposit shall be made except to qualified public depository as established by state statutes;
(G) Authorized investments. Investment may be made in any type of security allowed under Illinois statutes regarding the investment of public funds;
(H) Suitable investments. Investments shall be made that reflect the cash flow needs of the fund type being invested;
(I) Collateralization or alternative insurance. Funds on deposit in excess of FDIC or SIPC limits must be secured by some form of collateral, witnessed by a written agreement. The amount of collateral provided will not be less than 110% of the fair market value of the net amount of public funds secured. Pledged collateral shall be held in safekeeping by an independent third-party depository, or the Federal Reserve Bank of Chicago, designated by the Board of Trustees and evidenced by a safekeeping agreement;
(J) Safekeeping and custody. All security transactions, including collateral for repurchase agreements, entered into by the Village or special district, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third-party custodian designated by the Board of Trustees and evidenced by safekeeping receipts and a written custodial agreement;
(K) 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;
(L) Maximum maturities. To the extent possible, the Village shall attempt to match its investments with anticipated cash flow requirements;
(M) Internal control. The Treasurer, under the direction of the Board of Trustees, is responsible for establishing and maintaining an internal control structure designed to insure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The internal controls shall address the following points:
(1) Control of collusion;
(2) Separation of transaction authority from accounting and record-keeping;
(3) Custodial safekeeping; and
(4) Written confirmation of telephone transactions for investments and wire transfers.
(Prior Code, § 14.3) (Ord. 1999-28, passed 12-16-1999)