CCR1995193\ \ RESOLUTION # 93-95
A RES0 .,UTION AMENDING CITY POLICY FOR
DEPOSITING AND INVESTING CITY FUNDS
WHEREAS, on August of Muskego adopted Resolution
#190-91 establishing a policy for
WHEREAS, the Common Council clanfy and modify said policy; and
WHEREAS, it is in the interest of nity to adopt a policy to insure prudent deposits and
investments of available City funds. \ NOW, THEREFORE, BE IT RESOLVED thayhe Common Council of the City of Muskego,
upon the recommendation of the Finance Committee, does her b establish the following policy in the public
interest for the deposit and investment of available City funds,
1. PUBLIC DEPOSITS
ey
A. The Common Council has by resolution depositories, organized and doing
City Treasurer shall deposit all public
B. Limitations. The resolution shall specify
whether the money shall be
limitations of Section
balances less than
guaranteed amounts.
C. Deposits. The
subject to the limitations hereinabove set forth.
appointed deputy acting under herhis direction and in herhis 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 66.042,
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
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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.
11. INVESTMENTS
A. Subject to the provisions of this policy, the City Treasurer shall have control of any
discretion in the investment of all City funds that are not immediately needed and are
available for investments. 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 herhis 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.
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.
3. Return on investments shall be maximized only to the extent that the first two
C. Eligible Investments. The investment of City funds shall be in accordance with Sections
34.01(5) and 66.04(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. A11 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 of 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.
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
depsitoly or approved financial institution.
4. US. 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.
D. Prohibited Investments. The City Treasurer is prohibited from investing in any of the
following:
2.
1.
3.
4.
5.
6.
I
8.
9.
10.
1 I.
12.
13.
14.
15.
16.
Commodity trading
Futures’ transactions
Short selling
Use or margin
Purchasing of call options
Selling of put options
Venture capital investments
International investments
Illiquid investments
Mortgage participation certificates and other CMO’s
Real estate
Purchasing of letters of credit
Mutual funds shares
Synthetic securities such as floaters and inverse floaters
Pooled investment programs other than the State Local Government
Investment Pool
Commercial paper
m. MISCELLANEOUS
A. Definitions. Words and phrases shall, insofar as applicable, have the meanings set for 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.
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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 66.042, Wisconsin Stats., as amended.
E. Duration. This policy shall continue in force until appealed or superseded by furlher
resolution of the Common Council.
DATED THIS DAY OF ,1995.
Mayor David DeAngelis
Attest:
Jean Marenda, City Clerk
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