ADOPTED - MAY 12, 1998
Agenda Item No. 18
Introduced by the Finance Committee of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION APPROVING AN INVESTMENT POLICY
FOR INGHAM COUNTY
RESOLUTION #98-110
WHEREAS, Public Act 20 of 1943, as amended, requires that the Board of Commissioners approve an Investment Policy for Ingham County; and
WHEREAS, the County Treasurer has submitted an Investment Policy for Ingham County for approval which conforms to the requirements of Public Act 20 of 1943 as amended.
THEREFORE BE IT RESOLVED, that the attached Investment Policy for Ingham County, as submitted by the County Treasurer, be approved, and become effective July 1, 1998.
BE IT FURTHER RESOLVED, that this policy shall remain in effect until amended or replaced.
FINANCE: Yeas: Goulet, Keefe, McDonald, Grebner, Bernero, Schafer
Nays: None Absent: Czarnecki Approved 5/6/98
ADOPTED - MAY 12, 1998
Agenda Item No. 18
Attachment
INVESTMENT POLICY FOR THE COUNTY OF INGHAM
As Required by Public Act 20 of 1943, As Amended
1.0 PURPOSE
It is the policy of Ingham County to invest public funds in a manner which will ensure the preservation of principal while providing the highest investment return with maximum security, meeting the daily cash flow requirements of the county and conforming to all state statutes governing the investment of public funds.
2.0 SCOPE
This investment policy applies to all financial assets of the County. These assets are accounted for in various funds of the county and include the general fund, special revenue funds, capital project funds, enterprise funds, internal service funds, trust and agency funds and any new fund established by the Board of Commissioners.
3.0 OBJECTIVE
The primary objectives, in priority order, of the County Treasurer's investment activities shall be:
3.1 Safety: Safety of principal is the foremost objective in the investment of County funds. Investments shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
3.2 Liquidity: The investment portfolio shall remain sufficiently liquid to enable the County Treasurer to meet all operating requirements which might be reasonably anticipated.
3.3 Return on assets: The investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and cash flow characteristics of the portfolio.
4.0 DIVERSIFICATION
The County Treasurer shall diversify his/her investments by security type and institution. With the exception of U.S. Treasury securities, no more than 60% of the total investment portfolio will be invested in a single security type or with a single financial institution.
ADOPTED - MAY 12, 1998
Agenda Item No. 18
Attachment
5.0 DELEGATION OF AUTHORITY
As required by state statute (MCL 48.40 and 129.12) and by Board of Commissioners depository and investment resolution in Appendix #1, management responsibility for the investment policy resides with the County Treasurer.
6.0 AUTHORIZED SUITABLE INVESTMENTS
The County Treasurer is limited to investments authorized by Act 20 of 1943, as amended and may invest in the following:
6.1 Bonds, securities, and other obligations of the United States or an agency or instrumentality of the United States.
6.2 Certificates of deposit, savings accounts, deposit accounts, or depository receipts of a financial institution.
6.3 Commercial paper rated at the time of purchase within the 2 highest classifications established by not less than 2 standard rating services and matures not more than 270 days after the date of purchase.
6.4 Repurchase agreements consisting of instruments listed in (6.1).
6.5 Bankers' Acceptances of United States banks.
6.6 Obligations of this state or any of its political subdivisions that at the time of purchase are rated investment grade by not less than 1 standard rating service.
6.7 Mutual funds registered under the Investment Company Act of 1940, Title 1 of Chapter 686, 54 Stat. 789, 15 U.S.C.80a-1 to 80a-3 and 80a-4 to 64, with the authority to purchase only investment vehicles that are legal for direct investment by the County. This authorization is limited to securities whose intention is to maintain a net asset value of $1.00 per share.
6.8 Investment Pools:
(1) Pools through an interlocal agreement under the Urban Cooperation Act
of 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512
(2) Pools organized under the Surplys Funds Investment Pool Act, 1982 PA
367, MCL 129.111 to 129.118
(3) Pools organized under the Local Government Investment Pool Act,
1985 PA 129.141 to 129.150
ADOPTED - MAY 12, 1998
Agenda Item No. 18
Attachment
6.9 Before executing an order to purchase or trade the funds of the County of Ingham, a financial intermediary, broker or dealer shall be provided with a copy of the County's Investment Policy regarding the buying or selling of securities by executing the form attached as Appendix 2.
7.0 SAFEKEEPING AND CUSTODY
It shall be the responsibility of the County Treasurer to determine which securities will be held by a third party custodian. Securities held in safekeeping by a third party custodian shall be evidenced by a safekeeping receipt.
8.0 PRUDENCE
The standard of prudence to be used by the County Treasurer shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
9.0 REPORTING
The County Treasurer shall provide an annual report to the Board of Commissioners which provides a clear picture of the status and types of investments of the current investment portfolio. This report shall be prepared in a manner which will allow the Board of Commissioners to ascertain whether investment activities during the reporting period have conformed to the Investment Policy.
ADOPTED - MAY 12, 1998
Agenda Item No. 18
Attachment
APPENDIX #1
ADOPTED - JANUARY 28, 1997
Introduced by the Finance Committee of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION FOR THE DEPOSIT AND INVESTMENT OF COUNTY FUNDS
RESOLUTION #97-14
WHEREAS, under the law of the State of Michigan, Act No. 40 of the Michigan Public Acts of 1932, 1st Extra Session, as amended (MCL 129.12), this Board is required to provide, by resolution, for the deposit of all public monies including tax monies, belonging to, or held for, the State, County or other political units coming into the hands of the County Treasurer, in one or more banks, savings and loan associations or credit unions within the State.
THEREFORE BE IT RESOLVED, (1) the Ingham County Board of Commissioners hereby directs Donald R. Moore, Ingham County Treasurer, to deposit all public monies, including monies and funds held for the State Board of Escheats or missing heirs, coming into his hands as Treasurer in any bank, savings and loan association or credit union within the State which is a legal depository as defined by State and/or Federal law, and (2) the treasurer is authorized to invest funds with these institutions or any institution legally permitted by State Statute Act No. 20 of the Michigan Public Acts of 1943, as amended (MCL 129.91) or Federal law or regulation within the limits set therein.
BE IT FURTHER RESOLVED, that the County Treasurer is authorized to enter into and execute on behalf of the County any contracts with any bank or trust company for the safekeeping or third party custodianship of any of the County's securities as well as any contracts or repurchase agreements with any corporation for the purchase of any such securities which will be the subject of such safekeeping or third party custodianship arrangements, on such terms and conditions as the County Treasurer shall require.
BE IS FURTHER RESOLVED, that the County Treasurer is authorized to rely on the continuing of this resolution until amended or replaced by a subsequent resolution of this or successor Board of Commissioners.
FINANCE: Yeas: McDonald, Czarnecki, Sims, Bernero, Stid, Keefe, Schafer
Nays: None Absent: None Approved 1/22/97
ADOPTED - MAY 12, 1998
Agenda Item No. 18
Attachment
APPENDIX #2
ACKNOWLEDGMENT OF RECEIPT OF INVESTMENT POLICY
AND AGREEMENT TO COMPLY
I have read and fully understand Act 20 PA 1943, as amended, and the Investment Policy of the County of Ingham.
Any investment advice or recommendation on investments given by_________________
representing ___________________, to the Ingham County Treasurer shall comply with the requirements of Act 20 PA 1943, as amended, and the Investment Policy of the County of Ingham. Any existing investment not conforming with the statute or policy will be disclosed promptly to the Ingham County Treasurer. Further, should a broker/dealer learn of a forthcoming downgrading of commercial paper that has been sold to the County of Ingham, the County asks that the broker/dealer notify the Treasurer as soon as possible to determine if there is a need to trade that investment.
By: ____________________
Title: ____________________
Date: ____________________