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City of Mendota, IL
LaSalle County
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Table of Contents
Table of Contents
Code
New Laws (42) Index
[Adopted by Ord. No. 11-15-99; amended in its entirety by Ord. No. 09-15-14A]
It is the policy of the City of Mendota to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.
This policy includes all funds governed by the City Council.
A. 
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income derived.
B. 
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.
A. 
The primary objectives, in order of priority, shall be:
(1) 
Legality: conformance with federal, state and other legal requirements.
(2) 
Safety: preservation of capital and protection of investment principal.
(3) 
Liquidity: maintenance of sufficient liquidity to meet operating requirements.
(4) 
Yield: attainment of market rates of return.
B. 
The portfolio should be reviewed periodically as to its effectiveness in meeting the City's needs for safety, liquidity, rate of return, diversification and its general performance.
Management and administrative responsibility for the investment program is hereby delegated to the City Clerk who, under the delegation of the City Council, shall establish written procedures for the operation of the investment program.
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions.
The City Clerk will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security brokers/dealers selected by credit worthiness.
A. 
Investments may be made in any type of security allowed for in Illinois statutes regarding the investment of public funds.
B. 
Investments shall be made that reflect the cash flow needs of the fund type being invested.
Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and held at an independent third-party institution in the name of the City of Mendota.
All security transactions, including collateral for repurchase agreements, entered into by the City of Mendota shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third-party custodian designated by the City Clerk and evidenced by safekeeping receipts and a written custodial agreement.
The City of Mendota shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity.
A. 
To the extent possible, the City of Mendota shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City of Mendota will not directly invest in securities maturing more than three years from the date of purchase.
B. 
Reserve funds may be invested in securities exceeding three years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of the funds.
The City Clerk is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The internal controls shall address the following points:
A. 
Control of collusion.
B. 
Separation of transaction authority from accounting.
C. 
Custodial safekeeping.
D. 
Written confirmation of telephone transactions for investments and wire transfers.
This investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a comparable rate of return during a market/economic environment of stable interest rates. Portfolio performance should be compared to benchmarks with similar maturity, liquidity and credit quality as the Illinois Funds portfolio.
The City Clerk shall prepare an investment report at least monthly. The report should be provided to the City Council and be available on request. The report should be in a format suitable for review by the general public. An annual report should also be provided to the Council.
A statement of the market value of the portfolio shall be issued to the City Council quarterly.
The investment policy shall be adopted by the City Council. The policy shall be reviewed on an annual basis by the City Clerk and any modifications made thereto must be approved by the City Council.