[HISTORY: Adopted by the President and Board of Trustees
of the Village of Sidney 5-20-2011 by Ord. No. 2011-01. Amendments noted where applicable.]
It is the policy of the Village of Sidney 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 Village and conforming to all state and local statutes governing
the investment of public funds.
This policy includes all funds governed by the Board of Trustees.
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 to be derived.
A.
Management and administrative responsibility for the investment program
is hereby delegated to the Treasurer, who, under the delegation of
the Board of Trustees, shall establish written procedures for the
operation of the investment program, which procedures are subject
to the Trustees' approval.
B.
However, the Treasurer shall not close any account or invest, open
any account or investment, or transfer funds from any account or investment
to any other account or investment without the express approval of
the Board of Trustees, except in an emergency circumstance specifically
approved by the Village President.
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.
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 municipality.
All security transactions, including collateral for repurchase
agreements, entered into by the Village of Sidney shall be conducted
on a delivery-versus-payment (DVP) basis. Securities will be held
by an independent third-party custodian designated by the Treasurer,
as approved by the Trustees, and evidenced by safekeeping receipts
and a written custodial agreement.
The Village 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 Village of Sidney shall attempt to match
its investments with anticipated cash flow requirements. Unless matched
to a specific cash flow, the Village of Sidney will not directly invest
in securities maturing more than two years from the date of purchase.
B.
Reserve funds may be invested in securities exceeding two years if
the maturity of such investments is made to concede as nearly as practicable
with the expected use of the funds.
The Treasurer is responsible for establishing and maintaining
an internal control structure designed to ensure that the assets of
the Village of Sidney 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:
The 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 portfolio.
The Treasurer shall prepare an investment report at least monthly.
The report should be provided to the Board of Trustees 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
Board of Trustees.
A statement of the market value of the portfolio shall be issued
to the Board of Trustees quarterly.
The investment policy shall be adopted by the Board of Trustees.
The policy shall be reviewed on an annual basis by the Treasurer and
any modifications made thereto must be approved by the Board of Trustees.