CCR1991190COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #190-91
FOR PUBLIC DEPOSIT AND INVESTMENTS
ESTABLISH A POLICY
WHEREAS, 1985 Wisconsin Act 25, which became effective August 1,
to public deposits, and
1985, has made important changes in Chapter 34, Stats., relating
WHEREAS, 1985 Wisconsin Act 25 abolishes the state deposit
guarantee fund and eliminates the authority of the Commission of
Banking to levy assessments against public depositors for the
purpose of reconstituting said funds, and
WHEREAS, the Act retains the pledge of general purpose revenues
for the payments of losses of public deposits in any individual
thousand dollars ($400,000) above the amount of deposits
financial institution in an amount not to exceed four hundred
time as general purpose revenues have been exhausted, and
insurance provided by an agency of the United States, until such
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 :
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 time deposits subject to the limitations of
deposits, and whether a surety bond or other security shall
Section 6604(2), Stats., demand deposits or savings
be required to be furnished under Section 34.07, Stats, by
the public depository to secure the repayment of such
deposits. Not more than two million five hundred thousand
dollars ($2,500,000) shall be deposited in any one public
depository, unless specifically authorized by the Common
Council.
Resolution 190-91 Page 2
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 (5), Stats.
The City Treasurer is authorized, at her/his discretion, to
process periodic payments through the use of money transfer
techniques as set forth in Section 66.042 (3m), Stats. The
City Treasurer, as used in this paragraph, means only the
elected and 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
acting City Treasurer, and the duly appointed and acting
in Section 34.01(7), Stats., except the duly appointed and
deputy, shall be as provided in Section 66.042, 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, Stats., is
under the provisions of Section 34.06, 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), Stats.
a
11. INVESTMENTS
A. Subject to the provisions of this policy, the City Treasurer
shall have control of any discretion in the investment of
available for investments.
all City funds that are not immediately needed and are
B. Intent. It is the intent of the Common Council that the
City Treasurer utilize a wise and prudent cash management
system in such a manner to insure maximum investment
earnings, while at the same time be able to respond promptly
to authorized expenditures. Safety, liquidity and yield
will be the prime requisites for the investment of City
funds .
C. Scope. This policy is limited in its application to funds
which are not immediately needed and are available for
investment. Other funds, which are subject to special
Federal laws and regulations and said laws shall take
precedence if inconsistent with the provisions of this
policy.
Resolution 190-91 Page 3
a D. Responsibility. In exercising her/his investment responsibilities, the City Treasurer shall exercise the
care, skill, prudence and diligence under the circumstances
then prevailing, that a prudent person would act when in a
similar capacity, with the same resources, and familiar with
like matters in the management of a similar activity with a
like purpose.
E. Investments. The investment of City funds shall be in
accordance with Sections 34.01(5) & 66.04(2), Stats., as
f OllOWS :
1.
2.
3.
4.
Certificates of Deposit. 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
transact business in the State of Wisconsin. The savings & loan association which are authorized to
financial institutions must have been designated a
public depository of the City by resolution of the
Common Council. A maximum of two million five hundred
thousand dollars ($2,500,000) may be invested in each
institution unless the investment is collateralized by
federal government securities having a market value of
collateralization shall have been waived by the Common
one hundred ten percent (110%) of the investment or
Council.
Government pool. City funds may be invested in the
local government investment pool fund without limitation
as long as the fund is fully insured.
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.
U.S. Government Security, Bonds, or Securities issued or
guaranteed by the Federal Government.
111. MISCELLANEOUS
A. Definitions. Words and phrases shall, insofar as
applicable, have the meanings set for in Section 34.01,
Stats., as amended.
Resolution 190-91 page 4
B. Conflict. This policy as enacted in accordance with the
provisions of Chapter 34 and Sections 66.042, Stats., as
amended.
C. Duration. This policy shall continue in force until
appealed or superseded by further resolution of the Common
Council.
DATED THIS 13TH DAY OF AUGUST , 1991.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Daniel J. Hilt
Ald. Edwin P. Dumke
Ald. Harold L. Sanders
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This is to certify that this is a true and accurate copy of
Resolution #190-91 which was adopted by the Common Council of
the City of Muskego.
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