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1986-04-21 - Resolution 1986-32 - ADOPTING AN INVESTMENT AND DEPOSIT POLICY FOR THE VILLAGE OF BUFFALO GROVERESOLUTION NO. 86 - 32 A RESOLUTION ADOPTING AN INVESTMENT AND DEPOSIT POLICY FOR THE VILI,AGE OF BUFFAI.O GROVE WIEREAS, the VLllage of Buffalo Grove has both a statutory and flscal responalblllty to properLy Danage and control cash and lnvestment assets entruated to lt; and WIIEREAS, lt has been considered important that a fornal pollcy be establlshed by the Vlllage regardltrg all lnvestEent and deposlt actlvitles; and I.IIIEREAS, such a pollcy should be both underatandable for staff to monltor and quantlflable for purposes of dLsclosure both lnternally and externally by tho8e partLes to the overall pollcy. NO[', TITEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OT TIIE VILIAGE OE BUFFAIO GROVE, COOK AND LAKE COI'NTIES, ILLINOIS, thAt: SECTION l. The Vtlla ge of Buffalo Grove Policles and Procedures Relatlve to Deposlts and Investnents, noted as Exhlblt rrArr to thlg Resolutlon ls adopted by the Vlllage as a atatement of both po1lcy and control Ln the noanagexnent of cash and lnvestment assets. SECTION 2. The disclosure requlrenents of thls pollcy w111 be nade part of the Vfllagets actlvLtles reportlng cycle on elther an nonthly or quarterly bas1s, and 1f dlrected by audit staff, part of the Vtllagets Comprehensive Annual F1nanc1al Report. SECTION 3. The notlflcatlon to Village banklng lnstltiutlons w111 be forewarded to tho6e banks upon adoptlon, sald resolutlon and pollcy to be effectlve as of May 1, 1986. AyES: 5 - Marlenthal, Glover, Reid, Shlelds, Kowalski NAYES: g - yBlq ABSENT: PASSED: 1- O'Rei l1v APPROVED: April 21 Aor11 21 ,1986 , r985 ATTEST : Sr,.*-fn S,"^1,-,* viif;ElalEiE Vlllage Presldent VILLAGE OF BUFFAIO GROVE POLICIES AND PRACTICES RELATIVE TO DEPOSITS AND INVESTMENTS The Village of Buffalo Grove, as a publlc agency, has an lnherent flduclary responsLblllty to properly account for and manage publlc funds. Public funds are to be consldered current operatlng funds, special funds, lntere6t and slnklng funds, and funds of any klnd or character belonging to or ln the custody of any publ1c agency (Chapter 85, paragraph 90I, Illlnols Revised Statutes). It w111 be the Vlllagers pollcy to maintain the hlghest leveI of lnvested cash balances not on1y as a good manageoent practlce, but as a conmitment of responslbility to the resldents of the Vlllage who have en- trusted these funds to us. The types of deposits and lnvestment lnstruments that w111 be authorlzed for use by the Vlllage of Buffalo Grove Ln managlng lts investnent of publlc funds shal1 be dlctated by statute. The speclflc reference ls Chapter 85, paragraph 902, Illtnols Revlsed Statutes. Speclflcally, the lnvestments perEltted are: Bonds, notes, certlflcates of lndebtedness, treasury b111s or other securlties now and hereafter issued, whlch are guaranteed by the fu1l falth and credlt of the Unlted States of Anerica as to prlnclpal and lnterest. Interest bearlng savlngs accounts, lnterest bearlng certlflcates of deposit, lnterest bearing tlne deposlts or any other investEents con- stitutlng direct obllgatlons of any bank as deflned by the Il1lnols Banklng Act. InvestEents nay be made only ln banks whlch are lnsured by the Federal Deposit Insurance Corporation. Short tern obllgatlons of corporatlons organlzed ln the Unlted States wlth assets exceedlng $500,000,000 lf such obllgatlons are rated at the tlne of purchase wlthin the three hlghest classlficatlons establlshed by at least tl,o standards ratlng services and whlch mature not later than 180 days from the date of purchase, and such purchases do not exceed l0Z of the corporatlonrs outstandinS obligations. Short terE dlscount obli.gatlons of the Federal Natlonal Mortgage Asso- ciatlon. Shares or other forEs of securitles issuable by savings and loan asso- ciatlons lncorporated under the laws of the State of Illlnols or any other stace or under the lalrs of the Unlted States. Investments may be made only In those savlngs and loan assoclatlons whlch are lnsured by the Federal Savlngs and Loan Insurance Corporation. In additlon to the above Lnvestment optlons, the Vlllage may also invest any publlc funds ln the Illlnols State Treasurers Investment Pool. A11 earnlngs accruinS or pald on any investEents or deposlts made sha1l be credited to the speclflc investment rnade, and such earnlngs sha1I be ln turn credLted to and pald to the partlcular Vlllage fund for rrhl.ch the lnvestment has been made. It should be noted that whl1e lnvestments ln chartered credlt unlons pernltted, tt w111 be the Vlllagers pollcy nor to lnvest publlc funds ln instltutlofls. Alsor the Vlllage !1111 not invest ln repurchase or verse-repurchase agreements. are such re- A11 lnvestments sha1l be made in the name of the Vlllage of Buffalo Grove. In additlon, lf such securltles will be made frou monles taken from speciflc Vlllage funds or accounts, the nane of such fund or account shall be added to that of the Vlllage. A11 lnvestments purchased shall be held for the benefitof the Vlllage. Money taken from a partlcular fund or account shal1 be credlted to and deeEed to be a part of such fund or account, and shall be held for the benefit thereof. A11 lnvestments shall be deposlted and held 1n safekeeplng ln the name of the Vlllage wlth proper evldence of safekeeplng forewarded to the Vlllage for use ln lts lnternaL accountlng system. The Vlllage will secure deposit collateral from depository lnstitutions. The amouot of deposlts not collaterallzed or lnsured by an agency of the federal government sha1l not exceed 752 of the capltal stock and surplus of a banklng lnstLtutlon. These values shall be revlewed on a quarterly basls comparing actual deposlts not lnsured or collaterallzed against the capltal stock and surplus Eeasure. Values shall be taken fron publlshed regulatory agency reports requlred by elther the CoEptroller of the Currency or the Cotrmlsslon- er of Banks and Trust Companles. If deposlts are malntained with a savlngs and loan assoclatlon, the aBount of deposlts not collaterallzed or insuredshall not exceed 752 of the net worth of the instltution as deflned and reported to the regulatory agencles. The Village wi.l1 require that al1 deposlts ln exeess of the approprlate regulatory agency linlts, 1.e. $100,000 per account, be collaterallzed. The fonn of collateral shall conslst of readlly marketable Eunlclpal or Unlted States governmental prlnary or agency securltl.es Dalntalned Ln a crust safekeeplng relatlonshlp for the beneflt of the Village of Buffalo crove. Whlle not retalnlng ownershlp of pledged securltles, the Vlllage w111 reserve the right to release such securitles and to revlew replacenent securitles. The targeted leve1 of collateral malntained w111 be equal to 100.002 of the deposlt balances of the Vlllage when combined wlth the deposlt Lnsurance afforded by the governnental regulatory agencies. Ihe collateral balances wlll be revlewed on a quarterly basls for compllance wlth these policles. Addltlonal lnsurable balances are provlded relative to total actuarlal beneficlal lnterest for the police and fire penslon progratrs based on rnember- shlp paraneters. The collateral requirenents for deposlts tlthln the Illinois State Treasurers Investment Pool are the saEe as requlred for the deposlt of state funds by the State Treasurer. See Illlnols Revlsed Statutes, Chapter 130, paragraphs 17 a 20-43. The transfer of ready cash balances for operatlng and investment PurPoses w111 be directed through pollcles and procedures establlshed from time to tlne by the Department of FLnance and General Services. An oPerating proce- dure is currently ln effect wlth both the Bank of Buffalo Grove and Continental Bank of Buffalo Grove, N.A. that governs elther wire transfers or requests for cashierrs checks from any Vlllage savings or checklng account. The policy names the appropriate individuals wlthln the Department of Finance and General Servlces that have such withdral'al authorlty. Also, the naned indlvlduals have addltlonal authorlty to roll-over Certlficates of Deposlt, to cash same 1n and deposlt in the appropriate Vlllage fund account and to use the servlces of the lllinols State Treasurers Pool for lnvestment pur- POSeS. As formally artlculated Ln the letters lnstltutions, only the following can be procedure: of dlrectlon to the local fLnancLal perforoed by naned Lndlvlduals of the Transfer funds to the Vlllagers DlsburseBent Account at the Continental Illlnols Natlonal Bank. Transfer funds to the Vlllagets account rrLth the llllnois State Treasur- errs Investment Pool at the Sprlngfleld Marl-ne Bank. Request wlre transfers or cashlerrs checks to transfer funds between Vlllage-only accounts malntaLned elther at the Bank of Buffalo Grove or Contlnental Bank of Buffalo Grove, N,A. Proper ldentlflcatlon of the recelvlng account must be provided in the lnstructlons. Perlodically, both lnstltutions w111 be provlded rrlth l1sts of currently opened and authorlzed Vl[age demand and savings accounts. Request deblt/credlt transfers of Vlllage funds between Vlllage accounts rrlthln the sane lnstltutlon due to deposlt or wlthdrawal errors. Roll-over and/or cash 1n Certiflcates of Deposlt at the directlon of the of the Dlrector of Flnance and General Services. Transfer funds to the Northwest l,Iater establlshed at the Contlnental I1llnols wlth the ConmLssionrs bond ordinance. ComissLon operatl-ng account Natlonal Bank in conformance Any transactlon outslde of the above wlll be requested only by the Villagers Director of Finance and General Servlces. In all cases, any transaction w111 be followed-up Lrith wrltten correspondence irlthln 24 hours of the trans- actlon. The lnstltutlons have been lnstructed to notlfy the vlllage ln case there ls no notlficatlon wlthln the deadline parameters. Vlllage Pension Funds The investnent programs of the Villagers PolLce and Flre Penslon Funds will be dlrected by the statutory language of Chapter I08 of the I11lnols RevLsed Statutes. The speclflc Sectlons are 3-135 for Pollce Penslon lnvestments and 4-128 for Fire Penslon. The language for these actlvltles 1s separate fron other general lnvestnent actlvitles ln that the appolnted and elected penslon boards have statutory powers and dutles under the Pension Code. Whlle such lnvestment programs w111 be dlrected the Vlllage w111 nalntaln the lnternal accounting I by the respectlve Board t s, for sarne. Internal Reportlng Th e Department of Flnance and General Services wl11 provlde, on a regular basis, reporting to the Corporate Authorlties and the Pension Boards on any and all lnvestEent activltles. The reporting rrlll lnclude, but not be linlted to, average cash and lnvestEent balances, portfolio ylelds and lnterest, and treasury report noting nonth-end cash and Lnvestment posltlons. The reportlng will be by fund or lnvestment category. The reportlng to the Penslon Boards w111 include quarterly cash and lnvestnent posltions, along wlth quarterly cash and investDent transactions. The latter report 1s a statutory report and w111 be prepared for the Vl11age Treasurer. Dated May 1, 1986 FILE COPY \fII-I--({GE 6r grfy fra,,/,/ filaa. E}TjrFE:E.I-O GIR,O\TI. g u//a/a g oarye, 9/1. e o o as Betsy Mltchell Contlnental Bank of Buffalo Grove 555 West Dundee Road Buffalo Grove, I1llnols 60089 Dear Be tsy: Effectlve lmedlately, please accept verbal lnstructlons froE the followlng lndivlduals to elther lrire transfer or request cashlerg checks from Vlllage of Buffalo Grove checklng or savlngs accounts: Roberta Freed Diane Pfister They w111 also have authorlty to elther roll-over CertlfLcates of Deposlt or cash in same and deposlt ln Vlllage accounts for Vlllage purpoees, only. Transfer funds to the Vl11agers DlsburseEent Account at the Contlnental Illlnols NatLonal Bank. Transfer funds to the Vlllagers account \rlth the Illinois State Treasurerts Investnent Pool at the Sprlngfleld Marlne Bank. Request wire transfers or cashlers checks to transfer funds between Vll1age-only accounts Ealntalned elther at the Bank of Buffalo Grove or Contlnental Bank of Buffalo Grove. ProPer ldentlflcatlon of the recelvlng account must be provlded ln the Lnstructlons. Request debt/credlt transfers of Village funds betrreen Vlllage funds wtihln the sane bank. Both 3 and 4 above could occur because of prlor deposlt errors on our Part or to Provlde for payroll transfers. Roil over and/or eash ln CertLflcates of Deposit at rny dtrectlon for Village-only purposes. Proceeds wlll be dePoslted ln Vlllage-only accounts. Transfer funds to the Northwest l{ater Comisslon oPeratlng account estab- Llshed at the contlnental Illlnols Natlonal Bank ln confomance wlth the Comlsslonr s bond ordlnance. I 2 3 4 5 ltuy I, 1985 They are also authorized by the Vl11age and myself to perform only the followlng: 6. In all cases, any transactlon will be foll-owed-up wlth lrrltten merno approval by nyself. Please contact ne lf you do not recelve same wlthln 24 hours of a transaction. Any transactlon outsLde of the above w111 be requested only by oyself and llkerise wIlI be followed-up with a nemo of lnstructlon. Please let me know 1f you have any problems or concerns. I have enclosed a current llst of Vlllage accounts for your records. Slncerely, VILLAGE OF BUTFAIO GROVE @tt u,wt lJllllan H, Brlmrn Finance Director /t f. cc: Paul Kochendorfer FII,E COPY \rrr-r-.a.Gt 6r gtrr-M.r-o GlRo\zE. gr/g g-,,//, filud.g ufala gaarye, 9/1. eo o cs llay I, I985 Elldegard Schubert Bank of Buffalo Grove l0 East Dundee Road Buffalo Grove, Illinols 60089 Dear l'lrs. Schubert: Effectlve lmedlately, please accept verbal lnstructlons from the followlng lndlvlduals to either w'lre transfer or request cashlers checks from Vlllage of Buffalo Grove checklng or savlngs accounts: Roberta Freed Dlane Pf is ter They wtll aLso have authorlty to elther roIl-over Certlflcates of Deposit or cash Ln same and deposlt ln Vlllage accourts for Vlllage purposes, only. They are also authorLzed by the Vlllage and myseJ-f to perform only the followlng: Transfer funds to the Vlllagers Dlsbursement Account at the Contlnental Illlnols Natlonal Bank. Transfer funds to the vlllage's account with the Illlnois State Treasurerts Investment Pool at the Springfleld Marlne Bank. Request rrire transfers or cashl-ers checks to transfer funds between Vlllage-only accounts nalntal-ned elther at the Bank of Buffalo Grove or Continental Bank of Buffalo Grove. ProPer ldentiflcati.on of the receivlng account mus! be provided ln che instructLons. Request debt/credit transfers of Vlllage funds between Vlllage funds wlthln the same bank. Both 3 and 4 above could occur because of Prlor deposit errors or our Part or to Provide for payroll transfers. Ro1l over and/or cash ln Certlflcates of Deposit at my dlrection for Vlllage-only purposes. Proceeds w111 be deposlted ln Vlllage-only account6. Transfer funds to the Northwest l,rater comlssioD oPeratlng account estab- 1lshed at the contlnental llllnols Natlonal Bank 1n confornance with the Corrulsslon I s bond ordinance. 1 2 3 4 5 6 In all cases, any transactLon wlll be followed-up wlth wrltten meno approval by nyself. Please contact ne lf you do not recelve same rrithin 24 hours of a transaction. Any transaction outside of the above will be requested only by nyself and llkewlse w111 be followed-up wlth a memo of lnstructlon. Please let me know lf you have any problems or concerns. I have enclosed a current llst of Vlllage accounts for your records. Sincerely, VILLAGE OF BUFFALO GROVE tNdJJ,t/v\ illlLiam H. Br Flnance Director /rt cc: Paul Kochendorfer The followlng are currently authorlzed Vll1age bank operatlng accounts of of May l, 1986: Continental Bank of Buffalo Grove, N.A Account:Nunber: Payroll Checking I{ater Fund Savlngs Golf Course Savlngs Water Fund Deprec latlon and Contlngencles Savlngg Water Fund Bond Prlnc ipal and Interest Savlngs Capltal Prolects Savlngs- S tree ts Capltal ProJ ects Savlngs- Special ServLce Area #1 Contractual Street Ualnt. Debt Service Savlngs Po1lce Penslon Savlngs llater Fund Slnking Fund Savlng6 Account: General Checking Ceneral Savlngs Subdlvlslon Inprovement Agreement savlngs Revenue Sharlng Savlngs Motor Fuel Tax Savings Capltal Projects Savlngs- Facllltles Developnent Capltal Project6 Savings- Speclal Servlce Areas 2 & 3 Bond and Interest Savlngs- Speelal Servlce Areas Flre Pension Savlngs School/Park DonatLons Savlogs Corporate Purpose Bond Savlngs- A11 Serles Account: Vlllage of Buffalo Grove Dlsbursement Account Bank of Buffalo Grove Nuuber: 0299995101 0299997822 0299998620 029999782r 0299997820 0408395420 0410451020 040341 2020 04017 t2920 04052r5320 2062-01 2062-20 24tO-20 2356-20 2089-20 2208-20 2t86-20 22t6-20 2534-20 2364-20 2526-20 Continental Illlnols Natlonal Bank Number: 78-24106