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HomeMy WebLinkAboutRESOLUTION NO. 04-01-27-6 RESOLUTION INVESTMENT POLICY WHEREAS, an investment policy is required by the Code of Iowa; and, WHEREAS,annual approval of an investment.policy is necessary; and, WHEREAS,the attached documentation is the Investment Policy for the City of Fairfax; and, NOW THEREFORE DE IT RESOLVED, by the City Council of the City of Fairfax„ Iowa that the Mayor and the City Clerk are hereby authorized and directed to execute said Resolution. Passed and approved this day of , AYE NAY ABSENT Bill Voss,Mayor ATTEST: Mary Pacha, City Clerk RESOLUTION NO, 00-03-14-2 A DEPOSITORY RESOLUTION Be it resolved that the City Council of the city of Fairy Iowa,approves the following financial institution to be the depository of the City of Fairfax funds in conformance with all applicable provisions of Iowa.Code. The City Clerk is hereby authorized to deposit the City of Fairfax fonds in amounts not to exceed two million dollars($2,000,000.00). Fairfax State Savings Bank Fairfax,Iowa APPROVED AND ADOPTED this J e day of March,2000 Mayor,William Voss Betty J. P e City clerk CERTIFICATION. I hereby certify that the foregoing is a true and correct copy of a resolution of the City of Fairfax City Council, duly called and held on the j4A day of)v ,2000,a quorum being present,as said resolution remains of record in the minutes o said meeting, and it is now in full force and effect_ Dated this L4dt day of 2000. 4BeJj ,City Clerk CITY OF FAIRFAX,IOWA INVESTMENT POLICY SECTION I—SCOPE OF INVESTMENT POLICY The Investment Policy of City of Fairfax,Iowa(Hereafter Fairfax),shall apply to all operating funds,bond proceeds and other fund and all investment transactions involving operating fiords,bond proceeds and other accounted for in the financial statements of Fairfax.Each investment made pursuant to this Investment Policy must be authorized by applicable law and this written Investment Policy. The investment of bond funds or sinking funds shall comply not only with this investment policy,but also be consistent with any applicable bond resolution. This Investment Policy is intended to comply with Iowa Code Chapter 12B. Upon passage and upon future amendments,if any, copies of this Investment Policy shall be delivered to all of the following; 1. The governing body of officer of Fairfax,to which the Investment Policy applies. 2. All depository institutions or fiduciaries for public funds of Fairfax. 3. The Auditor engaged to audit any find of Fairfax. In addition,a copy of this Investment Policy shall be delivered to every fiduciary or third party assisting with or facilitating investment of the funds of Fairfax. SECTION 2—DELEGATION-OF AUTHORITY In accordance with Section 12B'.10(l),the responsibility of conducting investment transactions resides with the Treasurer of Fairfax. Only the treasurer and those authorized by Ordinance or Resolution may invest public funds and a copy of any empowering Ordinance or Resolution shall be attached to this Investment Policy. All contracts or agreements with outside persons investing public funds,advising on the investment of public funds,directing the deposit or investment of public funds or acting in a fiduciary capacity for Fairfax shall require the outside person to notify in writing Fairfax within 30 days of receipt of all communication from the Auditor of the outside person or any regulatory authority of the existence of a material weakness in internal control structure of the outside person or regulatory orders or sanctions regarding the type of service being provided to Fairfax by the outside person. The records of investment transactions made by or on behalf of Fairfax are public records and are the property of Fairfax whether in the custody of Fairfax or in the custody of a fiduciary or other third party. The Treasurer shall establish a written system of internal controls and investment practices.The controls shall be designed to prevent losses of public funds,to document those officers and employees of Fairfax responsible for elements of the investment process and to address the capability of investment management, The controls shall provide for receipt and review of the audited financial statements and related report on internal control structure of all outside persons performing any of the following for this public body. 1. Investing public funds, 2. Advising on the investment of public funds. 3. Directing the deposit or investment of public funds. 4. Acting in a fiduciary capacity for this public body. A Bank, Savings and Loan Association.or Credit Union providing only depository services shall not be required to provide an audited financial statement statement and related report on internal control structure. The Treasurer of Fairfax and all employees authorized to place investments shall be bonded in the amount of$25,000. SECTION 3—OBJECTIVES OF INVESTMENT POLICY The primary objectives,in order ofpriority, of all investment activities involving the financial assets of Fairfax shall be the following: 1. SAFETY: Safety and preservation of principal in the overall portfolio is the foremost investment objective. 2. LIQUIDITY: Maintaining the necessary liquidity to match expected liabilities is the second investment objective. 3. RETURN: Obtaining a reasonable return is die third investment objective. SECTION 4—PRUDENCE The Treasurer of Fairfax,when investing or depositing public funds,shall exercise the care, shill,prudence and diligence under the circumstances than prevailing that a person acting in a like capacity and familiar with such matters would use to attain the Section 3 investment objectives.This standard requires that when making investments decisions,the Treasurer shall consider the role that the investment or deposit plays within the portfolio of assets of Fairfax and the investment objectives stated in Section 3. When investing assets of Fairfax for a period longer than one(1)year,the Treasurer shall request competitive investment proposalsfor comparable credit and term investments from a minimum of three(3) Investment providers. SECTION 5—INSTRUMENTS ELIGIBLE FOR INVESTMENT Assets of Fairfax may be invested in the following: 1. Interest bearing savings accounts,interest bearing money market accounts,and interest bearing checking accounts at any bank, savings and loan association or credit union in the State of Iowa.Each bank must be on the most recent approved Bank List as distributed by the Treasurer of the State.of Iowa or as amended as necessary by notice inserted in the monthly wailing by the Rate Setting Committee.Each financial institution shall be properly declared as a depository by the governing body of Fairfax.Deposits in any financial institution shall not exceed the amount approved by the governing body of Fairfax. 2. Obligations of the United States government,its agencies and instrurnentalities. 3. Certificates of Deposit and other evidences of deposit at federally insured Iowa depository institutions approved and secured pursuant to chapter 12C,. All instruments eligible for investment are further qualified by all other provisions of this Investment Policy, including Section 7 investment maturity limitations and Section'8 diversification requirements. SECTION 6—PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES Assets of Fairfax shall not be invested in the following: 1. Reverse repurchase agreements. 2. Futures and options contracts. Assets of Fairfax shall not be invested pursuant to the following investment practices: 1. Trading of securities for speculation or the realization of short-term trading gains. 2. Pursuant to a contract providing for the compensation of an agent or fiduciary based upon the performance of the invested assets.- 3. ssets.3. If a fiduciary or other third party with custody of public investment transaction records of Fairfax fails to produce requested records when requested by this public body within a reasonable time,Fairfax shall make no new investment with or through the fiduciary or third party and shall not renew maturing investments with or through the fiduciary or third party. SECTION 7—INVESTMENT MATURITY LIMITATIONS. Operating Funds must by identified and distinguished from all other funds available for investment. Operating Funds are defined as those funds which are reasonably expected to be expended during a current budget year or within fifteen months of receipt. All investments authorized in Section 5 are further subject to the following investment maturity limitations: 1. Operating Funds may only be invested in instruments authorized in Section 5 of this Investment Policy that mature within three hundred ninety-seven(3 97)days. 2. The Treasurer may invest funds of Fairfax that are not identified as Operating Funds in investments with maturities longer than three hundred ninety-seven(3 97)days.However,all. investments of Fairfax shall have maturities that are consistent with the needs and use of Fairfax. SECTION S—SAFEKEEPING AND CUSTODY All invested assets of Fairfax involving the use of a public funds custodial agreement,as defined in Section 12B,10C.All custodial agreements shall be in writing and shall contain a provision that all custodial services be provided in accordance with the laws of the State of Iowa. All invested assets of Fairfax eligible for physical delivery,shall be secured by having them held at a third party custodian. All purchased investments shall be held pursuant to a written third party custodial agreement requiring delivery versus payment and compliance with all rules set out elsewhere in Section of this Investment Policy. SECTION 9—ETHICS AND CONFLICT OF INTEREST The Treasurer and all officers and employees of Fairfax involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.Any personal investments or loans in excess of$ min or with any entity that Fairfax has declared as a depository or regularly conducts investment business with shall be disclosed in writing to the governing board of Fairfax. SECTION la—REPORTING The Treasurer shall submit Quarterly an investment report that summarizes recent market conditions and investment strategies employed since the Iast investment report.The investment report shall set out the current portfolio in terms of maturity,rates of return and other features and summarize all investment transactions that have occurred during the reporting period and compare the investment results with the budgetary expectations. SECTION I1—INVESTMENT"POLICY REVIEW AND AMENDMENT This Investment Policy shall be reviewed every two years or more frequently as appropriate. Notice of amendments to the Investment Policy shall be promptly given to all parties noted in Section 1.