CCR2009082-Attachment
CITY POLICY FOR DEPOSITING AND INVESTING CITY FUNDS
I. PUBLIC DEPOSITS
A. The Common Council has by resolution designated public depositories,
organized and doing business under the laws of this state or federal law,
and located in this state, in which the City Treasurer shall deposit all public
monies received by her/him.
B. Limitations. The resolution designating one or more public depositories
shall specify whether the money shall be maintained in demand deposits
or time deposits subject to the limitations of Section 66.0603(2), Stats. It
is the City’s intent to the extent possible, to maintain balances less than or
equal to the amounts insured by the F.D.I.C. or State of Wisconsin
guaranteed amounts.
C. Deposits. The City Treasurer shall deposit public monies in the name of
the City of Muskego in such public depository or depositories designated
by the Common Council, subject to the limitations hereinabove set forth.
D. Withdrawals. Withdrawals or disbursements by the City Treasurer of
monies deposited in a public depository shall be made as provided by
Sections 66.0607(1) to (7), Wisconsin Stats. The City Treasurer is
authorized, at his/her discretion, to process periodic payments through the
use of money transfer techniques as set forth in Section 66.0607(3m),
Wisconsin Stats. The City Treasurer, as used in this paragraph, means
only the acting City Treasurer or duly appointed deputy acting under
her/his direction and in her/his absence or disability, or in case of a
vacancy, and does not include all of the other persons within the definition
of that term in Section 34.01(7), Wisconsin Stats., except the duly
appointed and acting City Treasurer, and the duly appointed and acting
deputy, shall be as provided in Section 66.0603, Wisconsin Stats.
E. Liability. Notwithstanding any other provision of law, the Treasurer who
deposits public money in any public depository, in compliance with
Section 34.05, Wisconsin Stats., is under the provision of Section 34.06,
Wisconsin Stats., relieved of any liability for any loss of public monies
which results from the failure of any public depository to repay to the
public depositor the full amount of its deposits, thus causing a loss as
defined in Section 34.01(2), Wisconsin Stats.
II. INVESTMENTS
A. Subject to the provisions of this policy, the City-Treasurer shall seek
advice from the Finance Director on all investments of City Funds that are
not immediately needed and are available for investments. If unable to
arrive at consensus, the matter shall be referred to the Finance Committee
for determination. The Common Council makes it known to all banks,
investment bankers, brokers, dealers and others accepting deposits,
selling securities or shares or in any manner is involved in the investments
and deposits of the City, that the Treasurer is an untrained public official,
not a sophisticated investor and is restricted in her/his activities by state
law and this resolution.
B. Objectives. It is the policy of this City that all investments or deposits of
public funds shall adhere to the following objectives:
1. The preservation of principal shall be the paramount objective.
2. Liquidity shall be maintained sufficient for the City to meet all
disbursement requirements when due.
3 Return on investments shall be maximized only to the extent that
the first two objectives are met. The Common Council recognizes
that meeting these objectives will likely result in interest earnings
less than that obtainable with a more aggressive policy.
C. Eligible Investments. The investment of City funds shall be in accordance
with Sections 34.01(5) and 66.0603(2), Wisconsin Stats., as follows:
1. Certificates of Deposits. City funds may be invested in certificates
of deposit maturing within three years or less from the date of
investment issued by any bank or savings and loan association,
which are authorized to transact business in the State of Wisconsin.
The financial institutions must have been designated a public
depository of the City by resolution of the Common Council. Banks
issuing Certificates of Deposit must provide collateral to secure
amounts over and above F.D.I.C. and State of Wisconsin
guaranteed amounts. All securities serving as collateral shall be
direct obligations of the United States or guaranteed as to principal
and interest by the United States, through a U.S. Governmental
Agency as defined by the Federal Reserve Bank, bonds or
securities issued by the City or general obligations bonds or notes
issued by a Wisconsin city, county, technical college, village, town
or school district. All securities serving as collateral shall be
specifically pledged to the City (not as part of a pooled fund) and
placed in a custodial account at a Federal Reserve Bank, a trust
department of a commercial bank, or through another financial
institution. The custodian may not be owned or controlled by the
depository institution or its holding company unless it is a
separately operated trust institution. The custodian shall send
statements or pledged collateral to the Treasurer’s Office on a
monthly basis.
2. Government Pool. City funds may be invested in the Local
Government Investment Pool fund without limitation as long as the
fund is fully insured.
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3. Repurchase Agreements. City funds may be invested in
repurchase agreements in financial institutions approved for that
purpose by the Common Council. Repurchase agreements can
only be made in securities which are direct obligations of or
guaranteed as to principal interest by the federal government and
securities which are obligations of an agency, commission, board or
other instrumentality of the federal government, where principal and
interest are guaranteed by the federal government. Securities
purchased by a repurchase agreement must be placed in
safekeeping in a segregated account in the City’s name at any
designated public depository or approved financial institution.
4. U.S. Government Security, Bonds, or Securities Issued or
Guaranteed by the Federal Government.
5. Bonds or securities issued by the City or general obligation notes or
bonds issued by a Wisconsin county, city, technical college district,
village, town or school district.
6. The Wisconsin Investment Series Cooperative.
D. Prohibited Investments. The City Treasurer is prohibited from investing in,
but not limited to, any of the following:
1. Commodity trading
2. Futures’ transactions
3. Short selling
4. Use or margin
5. Purchasing of call options
6. Selling of put options
7. Venture capital investments
8. International investments
9. Illiquid investments
10. Mortgage participation certificates and other CMO’s
11. Real estate
12. Purchasing of letter of credit
13. Mutual funds shares
14. Synthetic securities such as floaters and inverse floaters
15. Pooled investment programs other than the State Local
Government Investment Pool and the Wisconsin Investment
Series Cooperative
16. Commercial paper
III. EXCLUSION
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Nothing in this section shall limit investments in the City’s Employee
Deferred Compensation Plan authorized under Section 457 of the Internal
Revenue Code.
IV. MISCELLANEOUS
A. Definitions. Words and phrases shall, insofar as applicable, have
the meanings set forth in Section 34.01, Wisconsin Stats., as
amended.
B. Prohibited Activities. The Treasurer is prohibited from borrowing
funds using investment securities as collateral for the purpose of
purchasing additional investments.
C. Special Instruction. The Treasurer shall provide each and every
depository, investment banker, investment advisor, investment
planner and any others selling investments to the City a copy of this
resolution, and obtain a receipt for its delivery prior to any
investment activity with the party.
D. Conflict. This policy as enacted in accordance with the provisions
of Chapter 34 and Sections 66.0603, Wisconsin Stats., as
amended.
E. Duration. This policy shall continue in force until appealed or
superseded by further resolution of the Common Council.
Adopted by Reso. #193-95 (9/26/95)
Amended by Reso. #1-96 (1/9/96)
Amended by Reso. #191-97 (8/26/97)
Amended by Reso. #082-2009 (05/26/09)
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