[Amended 12-21-1999 by Ord. No. 99-12-01]
The Investment Policy of the Village is hereby adopted within
this article and shall be known and identified as the "Village of
Brownstown Investment Policy," (hereafter the "policy") adopted in
furtherance of and in intended compliance with the Public Funds Investment
Act of the State of Illinois.[1]
[1]
Editor's Note: See 30 ILCS 235/0.01 et seq.
The Village of Brownstown Investment Policy, generally stated,
shall be to invest public funds in a manner which will provide the
highest investment return while exercising maximum security and meeting
the Village's daily cash flow demands, all in conformity with all
state and local statutes governing the investment of public funds.
The policy shall apply to all funds governed and overseen by the Village
Board.
Village investments shall be under the circumstances then prevailing
with the judgment and care which persons of reasonably prudence, discretion
and intelligence would exercise in the management of their own affairs
for investment purposes, free of speculation, and considering the
probable safety of capital as well as the probable income to be realized.
The "Prudent Person Standard" shall be the prudence standard used
by investment officials in managing the Village's overall funds and
investment portfolio.
Primary investment objectives, in order of priority, shall be:
(A)Â
Legality. Investments shall be made in conformity with federal, state
and other legal requirements.
(B)Â
Safety. Investments shall be made with an eye toward the preservation
of capital and protection of investment principal.
(C)Â
Liquidity. Investments shall be made with due regard for the maintenance
of sufficient liquid assets to meet ordinary operating requirements
and expenses.
(D)Â
Yield. Investments shall be made with a view toward achieving rates
of return which are comparable to then generally available market
rates of return.
(E)Â
Review. The investment portfolio shall be reviewed periodically and
not less frequently than annually to determine the overall and particular
effectiveness of investments in meeting the four initial objectives
stated above.
The daily and periodic management and administrative responsibility
for the Village's investments is hereby delegated to the Village Treasurer
who, under this delegation and direction, shall establish written
procedures for the appropriation implementation of this policy and
the operation of the Village's investment program.
Officers and employees involved in the investment process shall
refrain from personal business activity which would conflict with
the proper execution and management of the investment program or which
would impair the officers' and employees' ability to make impartial
decisions on behalf of the Village.
With the Board's advice and approval, the Village Treasurer
shall maintain a list of financial institutions authorized to provide
investment services and of approved security brokers or dealers for
use by the Village. The list of approved security brokers and dealers
shall be created, based upon the brokers' and dealers' creditworthiness,
after due and diligent inquiry and investigation.
Investments of the Village's funds may be made in any form of
security which Illinois statutes allow to be utilized for the investment
of public funds. Subject to the foregoing criteria, investments shall
be which give due regard to the cash flow needs of the fund type in
which investment is being made.
Any Village-deposited funds which exceed Federal Deposit Insurance
Corporation (FDIC) limits must be secured by an acceptable form of
additional collateral from the depository, evidenced by written agreement
and held by an escrow agent institution in the Village's name.
All security transactions, including collateral for repurchase
agreements into which the Village has entered, shall be conducted
on a delivery-versus-payment (DVP) basis and the securities shall
be held by an independent third-party custodian designated by the
Village Treasurer, evidenced by safekeeping receipts and a written
custodial agreement.
The Village's investments shall be diversified to the best of
the Village Treasurer's ability, based on the types of funds into
which investments are made and the cash flow requirements of all funds.
Diversification may be accomplished based upon the types of investment,
the variety of institutions into which investments are made, and the
length of investment maturities.
To the fullest extent possible, the Village shall coordinate
its investments with anticipated cash flow requirements. Unless matched
to a specific cash flow requirement, the Village will not directly
invest in securities maturing more than five years from the date of
purchase. Any reserve funds may be invested in security exceeding
five years if the maturity of such investments are made to coincide
as nearly as practicable with the expected use of the funds, provided
that such maturity will not exceed 10 years.
The Village Treasurer is responsible for establishing and maintaining
an internal control structure designed to insure that the assets of
the entity are protected from loss, theft or misuse. Internal control
structure shall be designed to provide reasonable assurance that these
objectives are met, and shall address the following concerns:
The Village's investment portfolio shall be managed in accordance
with the requirements set forth in this policy and should achieve
a rate of return comparable to that expected during a period of market
and economic environment where stable interest rates occur. The performance
of the Village's investment portfolio shall be periodically compared
to benchmarks with similar maturity, liquidity and credit quality
as the portfolio.
The Village Treasurer shall prepare and submit to the Village
Board for review an investment report at least monthly. The investment
report shall be provided to the Board of Trustees at its regular monthly
meeting and shall be otherwise available upon reasonable request.
The investment report shall be in a format suitable for review by
the general public. The Village Treasurer shall also prepare an annual
investment report at the close of each fiscal year and prior to the
Village's annual town meeting.
The Village Treasurer shall provide to the Village Board a statement
of the Village's investment portfolio market value at least quarterly.
The provisions of this Investment Policy shall be reviewed by
the Village Treasurer annually.
[Added 6-16-2020 by Ord. No. 2020-06-02]
In the implementation of a sustainable investment policy, the
Village shall consider and apply the factors set forth in Sections
15(b) and 20(b)(1), (2), (3) and (4) of House Bill 101-0473.
[Added 6-16-2020 by Ord. No. 2020-06-02]
Material, relevant and decision-useful sustainability factors
shall be considered by the Village, within the bounds of financial
and fiduciary prudence, in evaluating investment decisions. Such factors
include, but are not limited to:
