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consistent with this policyorwith state law. TheMayor andCityCouncilmust approve anymodification
made thereto.
(D)
Ethics andConflict of Interest: Full disclosuremust bemade by investment personnel to theCityCouncil
of anymaterial interests theymayhold in a financial institution (brokers/dealers, banks, etc.) which
conducts businesswith theCity.
(E)
CashManagement: TheCityTreasurer or his/her designee shall preparewritten cashmanagement
procedures, which shall include, but not limited to, the following:
1.
Receipts: Allmonies due theCity shall be collected as promptly as possible. Monies that are received
shall be deposited in an approved financial institutionno later than the next business day after receipt
by theCity. TheCityCouncil shall subject to any available legal means of collectionpreviously
approved, amounts that remainuncollected, after a reasonable lengthof time. One of the objectives of
theCity’s cashmanagement procedures is to complywith the provisions of the IllinoisCompiled
Statuteswhichmandates prompt investment of funds.
2.
Disbursements: Anydisbursements to suppliers for goods and/or services or to employees for salaries
andwages shall be contingent upon available appropriation.
3.
Financial forecast: At least annually, a financial forecast will be prepared using expected revenue
sources and items of expenditures to project cash requirements for future years of theCity. Analysis
will be prepared for bothoperating and non-operating revenues and expenditures. These analyseswill
provide a guide for determining the length and amount of investments.
4.
PoolingofCash: Except where otherwise provided by theCityCouncil, theTreasurer, or his/her
designee, will be authorized to pool the cashof various funds tomaximize investment earnings, where,
inhis/her opinion, it is advantageous and prudent to do so. Investment incomewill be allocated to the
various funds based upon their respective participation.
(F)
Accounting: The assets, liabilities, revenues, and expenditures of each fund aremaintained as separate
entities on themodified accrual basis. All investment transactions shall be recorded in accordancewith
generally accepted accounting principles as promulgated by theGovernmental AccountingStandards
Board. Accountingprincipleswill include:
1.
Investmentswill be carried at cost or amortized cost with approximatemarket value.
2.
Anypremiumor discount on investment will be amortized over the life of the investment.
3.
Gains and losses of investments in all fundswill be recognized at the time of the dispositionof the
security.
(G)
Financial Institutions: It shall beCitypolicy to select financial institutions on the following basis:
1.
Security: TheCityofMomence shall maintain funds in a financial institutiononly if the institution is
federally insured.
2.
Location: Every attempt will bemade to invest City funds locallyprovided local institutions are price
competitivewith respect to rates of returnon comparable investment products.
3.
State ofCondition: TheCityofMomencewillmaintain for public andmanagerial inspection, current
statements of condition for each financial institutionnamed as depository. If, for any reason, the
information furnished is considered by theCityofMomence to be insufficient, theCitymay request
additional information.
4.
Each institution shall be required to submit, inwriting, a statement that theyhave received, read, and
understood theCity’s investment policy.
(H)
Investment Selection: TheCitymay invest in any type of security allowed for in the Illinois Compiled
Statutes regarding the investment of public funds. Approved investments include:
1.
Bonds, notes, certificates of indebtedness, treasurybills, or other securities, which are guaranteed as to
principal by the full faith and credit of the government of theUnitedStates ofAmerica.
