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(A) Authorized funds in which the Investing Officer invests town funds shall have attained as least the minimum rating required by state statutes, as amended.
(B) In addition, the town will only use broker/dealers that meet the following requirements:
(1) Primary dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule);
(2) Capital of no less than $10,000,000;
(3) Registered as a dealer under the Securities Exchange Act of 1934;
(4) A member of the National Association of Securities Dealers (NASO);
(5) Proof of state registration.
(Ord. 2023-49, passed 12-18-2023; Ord. 2024-13, passed 5-20-2024)
Consistent with I.C. 5-13-9, the following investments will be permitted by this policy:
(A) 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:
(1) The United States Treasury.
(2) A federal agency.
(3) A federal instrumentality.
(4) A federal government sponsored enterprise.
(B) Securities fully guaranteed and issued by any of the following:
(1) A federal agency.
(2) A federal instrumentality.
(3) A federal government sponsored enterprise.
(C) Municipal securities issued by an Indiana local governmental 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 in accordance with I.C. 5-13-9-2.
(D) Money market mutual funds rated AAAm, or its equivalent, by Standard and Poor's Corporation or Aaa, or its equivalent, by Moody's Investors Service, Inc., or its successor, in accordance with I.C. 5-13-9-2.5.
(E) Repurchase agreements in accordance with I.C. 5-13-9-3.
(F) Transaction accounts, certificates of deposit and deposit accounts issued or offered by a designated depository of the town's. The Investing Officer making a deposit in a certificate of deposit shall obtain quotes from each designated depository in accordance with I.C. 5-13-9-4.
(G) Certificates of deposit authorized by ordinance of the town in accordance with I.C. 5-13-9-5 and I.C. 5-13-9-5.3.
(H) Local government investment pools in accordance with I.C. 5-13-9-11.
(Ord. 2023-49, passed 12-18-2023; Ord. 2024-13, passed 5-20-2024)
(A) The town's investments must have a slated final maturity of not more than two years pursuant to I.C. 5-13-9-5.6. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as local government investment pools, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations.
(B) The town, pursuant to I.C. 5-13-9-5.7, authorizes its Investing Officer to make investments having a stated final maturity that is more than two years but not more than five years after the date of purchase. The total investments of the town with maturities of two to five years outstanding at the time of purchase may not exceed 25% of the total portfolio of public funds invested, including balances in transaction accounts.
(Ord. 2023-49, passed 12-18-2023; Ord. 2024-13, passed 5-20-2024)
The Investing Officer or its designee shall obtain competitive quotes for investment with financial institutions in accordance with I.C. 5-13-9-4. The Investing Officer or its designee shall obtain quotes from at least two brokers or financial institutions on all purchases of investment instruments on the secondary market. Overnight sweep investment instruments shall not be subject to this section.
(Ord. 2023-49, passed 12-18-2023; Ord. 2024-13, passed 5-20-2024)
The Investing Officer must approve all investments made pursuant to this policy. The Investing Officer may invest in certificates of deposits as follows:
(A) The funds are initially invested through a depository that is selected by the Investing Officer.
(B) The selected depository arranges for the deposit of the funds in interest bearing deposit accounts in one or more federally insured banks or savings and loan associations, wherever located for the account of the town.
(C) The full amount of the principal and any accrued interest of each certificate of deposit are covered by insurance of any federal deposit insurance agency.
(D) The selected depository acts as a custodian for the town with respect to the certificates of deposit issued for its account.
(E) On the same date that the town's funds are deposited and the certificates of deposit are issued, the selected depository receives an amount of deposits covered by insurance of any federal deposit insurance agency from customers of other institutions, wherever located, at least equal to the amount of the funds invested by the town through the selected depository.
(Ord. 2023-49, passed 12-18-2023; Ord. 2024-13, passed 5-20-2024)
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