HomeMy WebLinkAboutResolution #3375RESOLUTION NO. 3 3 7 5
A RESOLUTION ADOPTING AN INVESTMENT POLICY FOR THE CITY OF
CANTON
WHEREAS, the City of Canton from time to time obtains various public
funds; and,
WHEREAS, the City is required to invest said funds; and,
WHEREAS, a formed policy for investment is beneficial to all concerned.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Canton, Fulton County, Illinois that the City of Canton adopts the following as its
investment policy: (Said policy shall remain in effect until rescinded by resolution or
replaced. )
INVESTMENT POLICY OF THE
CITY OF CANTON
I. PURPOSE OF INVESTMENT POLICY AND OBJECTIVES:
The purpose of the investment policy is to provide written guidelines for
the prudent and diligent investing of the Public Funds of the City of Canton. The primary
objectives, in priority order of the City's investment activities shall be: Safety
(diversification) Liquidity: and Return on Investment.
II. POLICY:
It is the policy of the City of Canton to invest public funds conforming to
all state and local statutes governing the investment of public funds.
III. SCOPE:
The investment policy applies to all financial assets of the City of Canton.
These funds are accounted for in the City's Annual Audit.
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Trust and Agency Funds
Retirement/Pension Funds
IV. PRUDENCE:
The Standard of Prudence to be used by investment officials shall be the
"Prudent Person" standard and shall be applied in the context of managing an overall
portfolio. Investment officers acting in accordance with the investment policy and
exercising due diligence shall be relieved of personal responsibility of a security's credit
risk, bank failures, and market changes provided appropriate actions are taken to control
adverse developments.
V. AUTHORIZED FINANCIAL INSTITUTIONS & DEALERS:
Institutions: Primary: All Banks of the City of Canton.
Secondary: Banks of Fulton County, Qualified
Banking Institutions
Qualified Brokers: Those who qualify under the Securities and
Exchange Commission Rule 15C3-1. Treasurer will
maintain a list of the Brokers used in trading securities.
VI. AUTHORIZED INVESTMENTS:
Authorized investments are those that are backed by the full faith and credit
of the United States Government; those authorized under State Statutes for Public Funds
and those qualified under the Department of Insurance, Pension Division for Police and
Fire Investments.
VII. COLLATERIZATION:
A financial institution will be required to provide appropriate collateral for
city deposits in excess of FDIC insurance limits. Each financial institution will annually
provide an approved certification which describes the collateral that has been pledged in
the city's name.
VIII. SAFEKEEPING OF SECURITIES:
Third party safekeeping is required for all securities purchased by a broker,
and not held by the City Treasurer. To accomplish this, the securities can be held at the
following locations:
A Federal Reserve Bank or its branch office.
At another custodial facility -generally in a trust
department through book-entry at the Federal Reserve,
unless physical securities are involved.
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By an escrow agent of the pledging institution.
IX. MANAGEMENT OF PROGRAM:
The following individuals are authorized to purchase and sell investments,
authorize wire transfers, authorize the release of pledged collateral, and to execute any
documents required under this policy: City Treasurer.
X. ETHICS AND CONFLICTS OF INTEREST:
Officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with proper execution of the
investment program.
XI. INVESTMENT POLICY ADOPTION:
The City's investment policy shall be adopted by resolution of the City
Council. The policy shall be reviewed from time to time by the Finance Committee, and
any modifications made thereto must be approved by the City Council.
2. That the Mayor and City Clerk are hereby authorized on behalf of the
City to execute such documents and all other documents necessary for the carrying out of
said application.
3. That the Mayor and City Clerk are authorized to provide such
additional information as may be required to accomplish the obtaining of such grant.
4. That this Resolution shall be in full force and effect immediately upon its
passage by the City Council of the City of Canton, Fulton County, Illinois.
PASSED by the City Council of the City of Canton, Fulton County,
Illinois, at a
regular meeting this 2 0th day of May, 1997, upon a roll call vote as follows:
AYES: Aldermen Hartford, Molleck, Phillips, Sarff,
Meade, Nidiffer, May, Shores,
NAYS: None .
ABSENT: None .
APPROVED:
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Donald E. Edwards, Mayor
Attest:
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Nancy Whites City Clerk.