[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.
The primary objectives, in order of priority, shall be:
The portfolio should be reviewed periodically as to its effectiveness in meeting the entity's need for safety, liquidity, rate of return, diversification and its general performance.
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.
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.
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.
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.