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.
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.
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.
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:
B. Separation of transaction authority from accounting.
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.