I-5 - Resolution 2025-005 - City Depositories and Investment Policy

The controls shall be designed to prevent losses of public funds, to document the Investment Committee is responsible for elements of the investment process and to address the capability of investment management. 1. Investing public funds of the City. 2. Advising on the investment of public funds of the City. 3. Directing the deposit or investment of public fund of the City. 4. Acting in a fiduciary capacity for the City. A Bank, Savings and Loan Association or Credit Union providing only depository services shall not be required to provide an audited financial statement and related report on internal control structure. Members of the Investment Committee shall be covered by Government Crime Coverage for Employee Theft, Forgery or Alteration, Computer Fraud, and Funds Transfer Fraud. Such policy is in effect to be renewable every year as of April 1st. SECTION 3. OBJECTIVES OF INVESTMENT POLICY The primary objectives, in order of priority, of all investment activities involving the financial assets of the City shall be the following: 1. Safety: Safety and preservation of principal in the overall portfolio is the foremost investment objective. 2. Liquidity: Maintaining the necessary liquidity to match expected liabilities is the second investment objective. 3. Return: Obtaining a reasonable return is the third investment objective. SECTION 4. PRUDENCE The Investment Committee when investing or depositing public funds, shall exercise the care, prudence and diligence under the circumstances then prevailing that a person acting in a like capacity and familiar with such matters would use to attain the Section 3 investment objectives. This standard requires that when making investment decisions, the Investment Committee shall consider the role that the investment or deposit plays within the portfolio of the City assets of and the investment objectives stated in Section 3. When investing assets of the City for a period longer than two (2) years, the Investment Committee shall request competitive investment proposals for comparable credit and term investments from a minimum of three (3) investment providers. The Investment Committee shall make decisions to invest public funds in additional depositories as deems necessary to comply with Section 3, 4 and 5 per Iowa Code section 12B.10(l), SECTION 5. INSTRUMENTS ELIGIBLE FOR INVESTMENT Assets of the City may be invested in the following: • Interest bearing savings accounts, interest bearing money market accounts, and interest bearing checking accounts at any bank, savings and loan association or credit union in the State of Iowa. Each bank must be on the most recent Approved Bank List as distributed by the Treasurer of the State of Iowa or as amended as necessary by notice inserted in the monthly mailing by the Rate Setting Committee. Each financial institution annually shall be properly declared as a depository by the governing body of the City.