1
ORDINANCENO. 788
ANORDINANCEADDINGTOTHECITYCODETHEAMENDED INVESTMENT
POLICYOFTHECITYOFMOMENCE
WHEREAS,
theCityCouncil of theCityofMomence, Illinois is chargedwith the continued administration and
oversight of theCityCodeBook; and
WHEREAS,
theCityCouncil of theCityofMomence, Illinois has had an investment policy that was not part of the
CityCodeBook and should be added; and
WHEREAS,
theCityCouncil of theCityofMomence, Illinois has concluded that the city policy concerning funds
ondeposit inbanks in excess of FDIC limits requiring collateral should be amended to incorporate by reference, the
provisions of the Public FundsAct (30.ILCS.235); and
WHEREAS,
theCityCouncil of theCityofMomence, Illinoiswishes to add to theCityCode, specificallyunder a
portionof theCode known as Title 1, Chapter 12, Section 8, to be titled “CITY INVESTMENTPOLICY”.
NOW, THEREFORE,
be it ordained by theCityCouncil of theCityofMomence, Illinois, as follows:
SECTION 1:
That there is hereby added to theCityCode of theCityofMomence, Illinois, under Title 1,
Chapter12, Section 8, titled
“CITY INVESTMENTPOLICY”
.
1-12-8:CITY INVESTMENTPOLICY:
(A)
Scope of Investment Policy: This Investment Policy applies to the investment activities of theCityof
Momence. All financial assets inother funds, including theGeneral Fund,Motor Fuel TaxFunds, Special Tax
AllocationFunds, Sewer andWater Funds, and anynew funds created by theCityCouncil unless specifically
exempted, shall be administered in accordancewith the provisionof this policy.
(B)
Investment Objectives: The expected results of the Investment Policy are identified:
1.
Safetyof principal is the foremost objective. Investments of theCityofMomence shall be undertaken
in amanner that seeks to ensure that capital losses are avoided, whether they are from securities
default, or erosionofmarket value.
2.
TheCityofMomence’s investment portfolio shall be designedwith the objective of attaining amarket
rate of return throughout budgetary and economic cycles, taking into account theCity’s investment
risk constraints, and cash flow characteristics of the portfolio.
3.
Inorder to further guarantee asset safety, theCityofMomence shall diversify investments to avoid
incurring unreasonable risks form the practice of concentrating investments in specific security types
and /or individual financial institutions.
4.
TheCityofMomencewill avoid any transaction that might impair public confidence. Investments
shall bemadewith judgment and care, under circumstances thenprevailing, whichpersonnel of
prudence, discretion, and intelligence exercise in themanagement of their own affairs. Such standards,
therefore, avoid unwarranted speculation, emphasis is placed on the probable safetyof capital, rather
than the probable income to be derived.
(C)
Responsibility for the Investment Program: The establishment of investment policies is the responsibilityof
theMayor, andCityCouncil. Management and administrative responsibilities for the investment program
is herebydelegated to theCityTreasurer or his/her designee. TheCityTreasurer or his/her designee shall
prepare and followwrittenprocedures for the operationof the Investment Program, be responsible for all
transactions undertaken, and shall establish a systemof accounting controls to safeguardCity assets. The
CityTreasurer or his/her designee, may from time to time amend thewrittenprocedures in amanner
