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HomeMy WebLinkAboutRESOLUTION NO. 2007-45 CITY OF FAIRFAX INVESTMENT POLICY SECTION 1 —SCOPE OF INVESTMENT POLICY The Investment Policy of the City of Fairfax shall apply to all operating funds, bond proceeds and other funds and all investment transactions involving operating funds,bond proceeds and other funds accounted for in the City of Fairfax's financial statements. Each investment must be authorized by applicable law and is subject to conditions of this Investment Policy. 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. The Investment Policy is intended to comply with Iowa Code Chapter, 12B. Upon passage and upon future amendment, if any, copies of this Investment Policy shall be delivered to all of the following: • The governing body or officer of the City of Fairfax to which the Investment Policy applies. • All depository institutions or fiduciaries for public funds of the City of Fairfax. • The auditor engaged to audit any funds of the City of Fairfax. SECTION 2—DELEGATION OF AUTHORITY In accordance with Section 1213.10(l), the responsibility for conducting investment transactions resides with the City Clerk/Treasurer of the City of Fairfax, Only the City Clerk/Treasurer, Financial Administrator, and those authorized by ordinance or resolution may invest public funds and a copy of any empowering resolution shall be attached to this Investment Policy.. The City Clerk/Treasurer shall establish a written system of internal controls and investment practices. The controls shall be designed to prevent loss of public funds, to document those officers and employees of the City 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 statement and related reports on internal control structure of all outside persons performing any of the following for the City of Fairfax: 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 the City of Fairfax. A bank, savings and loan association or credit union providing only depository services shall not be required to provide an audited financial statement and related report on internal control structure. All contracts and agreements with outside persons providing any of the above listed services shall require written notification to the City of Fairfax within thirty days of receipt of any communication from either their auditor or any regulatory authority which denotes any of the following: the existence of a material weakness in their internal control structure, regulatory orders or sanctions in regard to the services being provided to the City of Fairfax by the outside person. C Documents and SettingslMaryWy Docutnenls\Council MeetingVuly 20071Investment Policy-Fairfax 10 July 07.doe The records of investment transactions made by, or on behalf of, the City of Fairfax are public records and are the property of the City of Fairfax whether in the custody of the City of Fairfax or in the custody of a fiduciary or other third party. SECTION 3—OBJECTIVES OF INVESTMENT POLICY The primary objectives, in order of priority, of all investment activities involving the financial assets of the City of Fairfax shall be the following: • SAFETY: Safety and preservation of principal in the overall portfolio is the foremost investment objective. • LIQUIDITY: Maintaining the necessary liquidity to match expected liabilities is the second priority. • RETURN: Obtaining a reasonable return is the third priority. SECTION 4-PRUDENCE When investing or depositing public funds, the Treasurer of the City of Fairfax shall exercise the care, skill,prudence and diligence under the circumstances then prevailing,that a prudent 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 investment decisions,the City Council shall consider the role that the investment or deposit plays within the portfolio of assets of the City of Fairfax and the investment objectives stated in Section 3. SECTION 5 -DEPOSITORIES All deposits shall be in depositories located 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 mailing from the State Treasurers Office. Each financial institution shall be properly declared as a depository by the City Council of the City of Fairfax. Deposits in any financial institution shall not exceed the $+6,000,000 limit approved by the City Council of the City of Fairfax. SECTION 6—INSTRUMENTS ELIGIBLE FOR INVESTMENT Assets of the City of Fairfax may be invested in the following: • 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 Iist of Approved Bank List as provided by the State Treasurer. Deposits will only be made with financial institutions that are properly declared as a depository by resolution of the Fairfax City Council. Deposit amounts shall not exceed the statutory limit approved by the governing body of Fairfax. • Obligations of the United States government, its agencies and instrumentalities. • Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions approved and secured pursuant to Chapter 12B. All instruments eligible for investment are further qualified by all other provisions of this Investment Policy including Section 8 — Investment Maturity Limitations and Section 9 — Diversification Requirements. CAT)ocuments and SettingsWaryWy DocumentsCouncil MeetingVuly 20071Investment Policy-Fairfax 10 duly 07.doc SECTION 7—PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES Public funds of the City of Fairfax shall not be invested in the following: 1. Reverse repurchase agreements, 2. Futures and options contracts. .Assets of the City 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, If a fiduciary or other third party with custody of public investment transaction records of the City of Fairfax fails to product requested records when requested by this public body within a reasonable time, the City of 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 S—INVESTMENT MATURITY LIMITATIONS Operating funds must be 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 the current budget year or within fifteen months of receipt, All investments authorized in Section 5 are further subject to the following investment maturity limitations: I, Operating funds may only be invested in instruments authorized in Section 5 of this Investment Policy that mature within three hundred ninety-seven(397)days. 2. The Treasurer may invest funds of the City of Fairfax that are not identified as Operating Funds in investments with maturities longer than three hundred ninety-seven (397) days. However, all investments of the City of Fairfax shall have maturities that are consistent with the needs and use of City of Fairfax, SECTION 9—DIVERSIFICATION The City of Fairfax maintains no investments of a type requiring diversification. SECTION 10--SAFEKEEPING AND CUSTODY All invested assets of the City of Fairfax involving the use of public funds custodial agreement, as defined in Section 1213.10C, shall comply with all rules adopted pursuant to 'Section 1213.10C relating to those investments. 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. SECTION 11 -ETHICS AND CONFLICT OF INTEREST The Treasurer and all officers and employees of the city of Fairfax involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment CC,:\Docurnents and Settings\MarylMy Doeuments\Council MeetingWy NONnvestment Policy-Fairfax 10 July 07,doc program, or which could impair their ability to make impartial investment decisions. Any conflict of interest or bias,whether in fact or by appearance, shall be disclosed in writing to the City of Fairfax. SECTION 12 -REPORTING The Treasurer shall submit an annual investment report in July that summarizes recent market conditions and investment strategies employed since the last 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 13 -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. Passed and approved this Q day of , 2007. Bill Voss,Mayor ATTEST: Vickie Kindl,City Clerk CADocuments and 3ettingsWaryWy Docurnents\Council Meetingliuly 200711nvestrn nt Policy-Fairfax 10 July 07.doc N C Lo 0 w L 0 0 w (D (n w to -� C C C C C C � C 0 0 0 0 0 0 0 0 0 0 0 0 0 h- E E E E Eo E E E E E E W (D co o m (D (D T CO CD m (D CD (0 CD co tq N 0 cn th 0 (n toU) L L �_ r s 'LC C C C C C N C C C C C C C 0 0 0 0 0 0 -0 0 0 0 0 0 0 0 ~ E E E E E E N E E E E E E E co co co N co Co co N co N N Co 0o 0o r T r r r r r T T r r r r 00 t ti O M o o 00 C) o 0 0 0 o Q a 0 C) 0 0 0 o d o o d d d 0 0 0 0 O R8 N N 4 N Nr O c N C, N N co N N Lo Ln ce) Qco 0 N N j m O N N N a N co (� M r T T co r T co G) 0 cl � y o 0 0 0 0 0 0 0 0 0 0 0 a" l() t) -t r o C t 0 a) N coOC) O U) O L N (0 W Dm) E W 4 Cf) d d It LO 6 4 4 a+ N c31 � to Il- lfi co M t O Co t CD (D m O o) O O O d O W O O Q d Q O) D) O_ d 0 0) 0 0 m Q O O O O N N N N N N N N CL CJ In Q d 0 CYO t O M O M O Q co M M N M N N co N M T M co W 1 (0 CD 0_o COS ((D r (�D COaC C o co �F+ O N cc co r M (Ti 1M- O ti N t co m CD 00 T 00 00 O d M V 0 cn6rN� oMr-,6 6coori � cornCOcq aia; c; C; ad m y., � E N fo o0 d' 00 N. 0 co (C co O coNco m CrJ.... N N Q Q 00 O C t: s Q CO fl In M M r N t N ( m r-: 06 N � CC3 CO (b CD N LO 6m d T r V C C. 0 L C N 0 .0 � C +4`+ C 'a d LL C C C Q , IL LL 0 c1 E in 00 t, CO M dcn C 'a i NSc < s} � N U NN r cCl) C � d LL CA Cd d O � COO 00 - - � ' x01- 0 mw M04 t- N t4 S� DO r to C 00 r O 0 0 00 O 4) iC N to _j LL. O a O co O O DCD CD - M(D O O F- 0) O d O y O CD O Cc IX COD {4 CD a (D (D ja NC 0 CD (D iq C CD C LOO 3 CD 4) CD si a F°- F z �I c.� � O � � / � \ % � / \ � : k \ Q § Q 9 § d 2 0 k r_ CD . § § a # ■ , @ : ? f .� / / 0 \ G c § 0 / \ \ w g ODq - 9 . m / $ CO @ U \ CL , a § 0 k � / \ \ LL © CI0 \ \ . 0 R .. ........ ....... ..... .......... ....... . .. . .... RESOLUTION NO. 7 A RESOLUTION AUTHORIZING THE TRANSFER OF LOCAL OPTION SALES TAS.SAVINGS FUNDS TO THE SEWER FUND BE IT ENACTED by the City Council of the City of Fairfax, Iowa: Section 1. Transfer from the 2004-2005 LOST Sewer Improvements Savings Account as follows: a. Transfer Order: $ � .� from the 2004-2.005 LOST Sewer Improvement Savings Fund to the Sewer Fund. Purpose: Sanitary Sewer Improvements NOW, THEREFORE, BE IT RESOLVED, By the City Council of the City of Fairfax, Iowa, that the Mayor and City Clerk are hereby authorized and directed to execute said Resolution. Passed and approved this day of , 2007. P AYES: �j NAYS: ABSENT: Bill Voss, Mayor ATTEST: c Vickie Kindl, City Clerk The foregoing Resolution No. having been approv d this date by t e Fairfax City Council,I hereby approve the same by affixing my signature as City Cleric on this day of 2007. Vickie Kindl,City Cleric