The city may invest in any type of security allowed for in state statutes regarding the investment of public funds. Current approved investments include:
(A) Bonds, notes, certificates of indebtedness, treasury bills, treasury strips or other securities or other allowable investments now or hereafter issued, which are guaranteed by the full faith and credit of the government of the United States of America as to principal and interest;
(B) Bonds, notes, debentures, or other similar obligations of the government of the United States of America or its agencies;
(C) Interest-bearing savings accounts, interest-bearing certificates of deposit, interest-bearing time deposits, or any other investment constituting direct obligations of any institution, as defined by the Illinois Banking Act, 205 ILCS 5, that are insured by the Federal Deposit Insurance Corporation;
(D) State funds, including the Illinois Public Treasurer’s Investment Pool (IPTIP) and the Illinois Metropolitan Investment Fund (IMET);
(E) Short-term obligations of corporations (banker’s acceptances and commercial paper), organized in the United States with assets exceeding $500 million, and rated at the time of purchase at the highest classification established by at least two standard rating services. Such investments must mature within 270 days from the date of purchase and may not exceed 10% of the corporation’s outstanding obligations. No more than a combined 33% of the city’s funds may be invested in banker’s acceptances or commercial paper at any given time;
(F) Short-term discount obligations of the Federal National Mortgage Association (FNMA) or in shares of other forms of securities or other allowable investments legally issued by savings and loan associations incorporated under the laws of this state or any other state or under the laws of the United States. Investments may be made only in those savings and loan associations of which the shares or investment certificates are insured by the Federal Deposit Insurance Corporation (FDIC);
(G) Investment options suitable under 30 ILCS 235, including fixed rate general obligation municipal bonds whose credit quality is restricted to AA or better.
(1994 Code, § 40.09) (Ord. 99-03, passed 3-22-1999; Ord. 2017-07, passed 12-26-2017)