Resolutions-2011-03 (3)

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. Deposits in any financial institution shall not exceed the amount approved by the governing body of the City. • Current depositories on record approved by the City Council are not to exceed maximum limits of: Hills Bank and Trust $1,200,000 Solon State Bank $1,200,000 U of I Community Credit Union $1,200,000 • Obligations of the United States government, its agencies and instrumentalities. • Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions approved and secured pursuant to Iowa Code chapter 12C. • Iowa Public Agency Investment Trust ("IPAIT"). All instruments eligible for investment are further qualified by all other provisions of this Policy, including Section 7. SECTION 6. PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES Assets of the City shall not be invested in the following: 1. Reverse repurchase agreements. 2. Futures and options contracts. Assets of the City shall not be invested pursuant to the following investment practices: 1. Trading of securities for speculation or the realization of short-term trading gains. 2. Pursuant to a contract providing for the compensation of an agent or fiduciary based upon the performance of the invested assets. SECTION 7. INVESTMENT MATURITY LIMITATIONS Operating Funds must be identified and distinguished from all other funds available for investment. Operating Funds are defined as those funds which are reasonably expected to be expended during a current budget year or within fifteen months of receipt. All investments authorized in Section 5 are further subject to the following investment maturity limitations: 1. Operating Funds may only be invested in instruments authorized in Section 5 of this Investment Policy that mature within three hundred ninety-seven (397) days. 2. The Investment Committee may invest funds of the City that are not identified as Operating Funds in investments with maturities that may be three months up and including to more than three hundred ninety-seven days (397) days. However, all investments of the City shall have maturities that are consistent with the needs and use of the City.