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CCR1996001COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #1-96 RESOLUTION TO AMEND CITY POLICY FOR DEPOSITING AND INVESTING CITY FUNDS WHEREAS, on August 13, 1991, the Common Council Of the City Of Muskego adopted Resolution #190-91 establishing a policy for depositing and investing City funds and on September 26, 1995 amended said Policy through Resolution #193-95, as amended and adopted; and WHEREAS, the Common Council desires to clarify and modify said policy again; and WHEREAS, it is in the interest of this community to adopt a policy to insure prudent deposits and investments of available City funds. NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby establish the following policy in the public interest for the deposit and investment of available City funds, as attached. 0 DATED THIS 9th DAY OF JANUARY , 1996. SPONSORED BY: FINANCE COMMITTEE Ald. Domonic D'Acquisto Ald. Patrick A. Patterson Ald. David J. Sanders This is to certify that this is a true and accurate copy of City of Muskego. Resolution #1-96 which was adopted by the Common Council of the 1/96 jmb 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 state, in which the City Treasurer shall deposit all laws of this state or federal law, and located in this public monies received by her/him. 8. 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 6604(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 66.042(1) to authorized, at his/her discretion, to process periodic (5), Wisconsin Stats. The City Treasurer is payments through the use of money transfer techniques as set forth in Section 66.042(3m), Wisconsin Stats. The City Treasurer, as used in this paragraph, means only the acting City Treasurer or duly appointed absence or disability, or in case of a vacancy, and deputy acting under her/his direction and in her/his 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 of public monies which results from the public depositor the full amount of its deposits, thus failure of any public depository to repay to the causing a loss as defined in Section 34.01(2), Wisconsin Stats. Page 2 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 COnUIIOn Council makes it known to all banks, investment deposits, selling securities or shares or in any bankers, brokers, dealers and others accepting 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 2. Liquidity shall be maintained sufficient for the paramount objective. City to meet all disbursement requirements when 3. Return on investments shall be maximized only to due. met. The Common Council recognizes that meeting the extent that the first two objectives are 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 66.04(2), Wisconsin Stats., as follows: 1. Certificates of Deposits. City funds may be within three years or less from the date of invested in certificates of deposit maturing investment issued by any bank or savings and loan association which are authorized to transact business in the State of Wisconsin. The a public depository of the City by resolution of financial institutions must have been designated of Deposit must provide collateral to secure the Common Council. Banks issuing Certificates Wisconsin guaranteed amounts. All securities amounts over and above F.D.I.C. and State of 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 Page 3 e * or notes issued by a Wisconsin city, county, technical college, village, town or school district. All securities serving as collateral part of a pooled fund) and placed in a custodial shall be specifically pledged to the City (not as department of a commercial bank, or through account at-a Federal Reserve Bank, a trust another financial institution. The custodian not be owned or controlled by the depository institution or its holding company unless it separately operated trust institution. The custodian shall send statements or pledged collateral to the Treasurer's Office on a mon basis. , may is a tthly 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 which are obligations of an agency, commission, interest by the federal government and securities 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. 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. 5. Use or margin 6. Purchasing of call options Selling of put options Page 4 11. 7. 8. 10. 9. 11. 12. 13. 14. 15. 16. EXCLUSION Venture capital investments International investments Mortgage participation certificates and Illiquid investments other CMO's Real estate Purchasing of letter of credit Mutual funds shares Synthetic securities such as floaters and Pooled investment programs other than the inverse floaters Commercial paper State Local Government Investment Pool Nothing in this section shall limit investments in the City's Employee Deferred Compensation Plan authorized under Section 451 of the Internal Revenue Code. 111. MISCELLANEOUS A. Definitions. Words and phrases shall, insofar as applicable, have the meanings set forth in Section 34.01, Wisconsin Stats., as amended. -a B. Prohibited Activities. The Treasurer is prohibited collateral for the purpose of purchasing additional from borrowing funds using investment securities as 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 Wisconsin Stats., as amended. the provisions of Chapter 34 and Sections 66.042, E. Duration. This policy shall continue in force until appealed or superseded by further resolution of the Common Council. MASTER: IWOL Adopted by Reso. 6193-95 19/26/95] Adopted by Reso. Y1-96 (I/ 9/96)