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Home My WebLink About90-445 December 6, 1990 # 90-445 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE INVESTMENT POLICY INITIATED BY: CITY ADMINISTRATION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached Investment Policy (December 1990) for the City of Oshkosh is hereby approved an3 the proper Ci�y officials are authorized and directed to implement the provisions contained within the Policy. SUBMITTED BY , PP ED - 15 - . • Res 90-445 CITY OF OSHKOSH WINNEBAGO COUNTY OSHKOSH, WISCONSIN INVESTMENT POLICY DECEMBER 1990 BY: DEPARTMENT OF FINANCE I . PURPOSE: The purpose �f thi� investment policy �s to establish the City' s investment scope, ob�ectives, delegatlon of authority to invest, standards of prudence to be applied in investments, internal controls to monitor the investments, investment limitations and safeguarding requirements . II . GENERAL: A. Scope : The investment policy applies to the activities of the City of Oshkosh with regard to investing the financial assets of the following funds : General Fund, Special Revenue Funds, Capital Fro�ects Funds, Enterprise Funds, Debt Service Funds, Special Assessment Funds and the Internal Service Funds . B. Ob�ectives : Funds of the city will be invested in accordance with Section 66. 04C2� of the Wisconsin Statutes, these policies and written administrative procedures . Safety of principal is the foremost ob�ective in investment decisions of the City of Oshkosh. Each investment transaction shall seek to avoid capital Iosses from security defaults or erosion of market values . The City' s investment portfolio shall be managed in a manner to attain a market rate of return throughout budgetary and economic cycles while preserving and protecting capital in the overall portfolio . Investments shall be made based on statutory constraints and sub�ect to available designated staffing capabilities . Where possible, prepayment funds for long-term debt service shall be invested to ensure a rate of return at least equal to the interest being paid on the bonds . - 15a - , • Res 90-445 C. Delegation of Authority: The Director of Finance is designated as investment officer of the City and is responslble for investment decisions and activities . In order to optimize total return through active portfolio management, resources shall be allocated to the cash management program. This commitment of resources shall include financial and staffing considerations . D. Prudence : The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule, which states, "Investments shall be made with �udgment and care, under circumstances then prevailing, which persons of prudence, discretion and inte111gence 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. " The prudent investor rule shall be applied in the context of managing the overall portfolio . The investment officer, acting ln accordance with this policy and exercising due diligence, shall not be held personally responsible for a specific security' s risk or market price ,changes, provided that these deviations are reported immediately and that appropriate action is taken to control adverse developments . E. Monitoring and Ad�usting the Portfolio : The investment officer will routinely monitor the contents of the portfolio, the available markets and the relative values of the competing instruments, and will ad�ust the portfolio accordingly. F. Internal Controls : The Director of Finance shall establish a system of internal controls and make available reports of investment activ- ity. The controls shall be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions . - 15b - • : ' Res 90-445 III . SAFEKEEPING AND COLLATERALIZATION: A. Daily investments : Daily investment of exces� funds in the master account which are made under the cash management system Ccurrent banking contract� must be made utilizing collateralization, as defined under IV. below, at institutions named by the Common Council as a designated depository. B. Certificates of Deposit : Deposit-type securities �i . e . certificates of deposit� shall be secured by pledged collateral , es defined under IV. below, in the amount of the total investment less the amount insured C$500, 0007 by the Federal Deposit Insurance Corporation or the Resolution Trust Corporation and the State of Wisconsin. C. Government Bonds, Securities and Pooled Funds : . City funds may be invested in United States government or agency, commission, board, and instrumentalities of the federal government, bonds or securities which are obligations of or guaranteed by the federal government . City funds may also be invested with the State of Wisconsin' s Local Government Pooled Investment Fund. D. Other Investments : All investments, other than III . A. , III . B. and III . C. above, purchased by the City shall be held by the City or in third-party safekeeping by an institution designated as primary agent . The primary agent shall issue a safekeeping receipt to the City listing the specific instrument , rate , maturity and other pertinent information. These investments shall be collateralized, as defined under IV. below. IV. The City limit.s collateral for purposes of securing its investments to the following: �in parenthesis is the percentage each security' s market value must be of the investment it will be used to collateralize� A. U. S. Government obligations �100� B. U. S. Agencies C100� C. State Obligations �110� D. County, City and other government Obligations �120� E. Corporate Notes and Bonds C120� - 15c - • � ' Res 90-445 G. Other securities as authorized under State Statute 66. 04C2� for purchases by Municipalities may be used as collateral . �110� V. DURATION: This policy shall continue in force until amended, repealed or superseded by further resolution of the Common Council . ,�- a�� ,, ti, - - 15d - �� o � o � o mz mz a- < � o .. o .. � � � .. .. � o � i rn � � o� o o � � � � c�n mmo mmrn � v� cn cn v cn cn z �o c+ -� o � � �.� ��• o m V � �I � ��N �� O m � z �• � o � 0 �