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HomeMy WebLinkAbout2012-OR-60 ORDINANCE NO. (PO ,a b ha - AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE AUTHORIZING THE INVESTMENT OF PUBLIC FUNDS PURSUANT TO IC 5- 13 -9 -5.7 Whereas, the City of Jeffersonville (the "City ") desires to allow the investment of public funds of the City for more than two (2) years and not more than five (5) years; Now, therefore, pursuant to IC 5 13 9 - 5.7, the Common Council of the City of Jeffersonville hereby authorizes the investing officer to make investments having a stated final maturity that is more than two (2) years, but not more than five (5) years after the date of purchase under the following circumstances: (a) The fiscal body of the City shall first adopt an investment policy authorizing the investment of public funds of the City for more than two (2) years and not more than five (5) years in accordance with IC 5- 13- 9- 5.7(a) and (b). (b) This ordinance and the power to make an investment having a stated final maturity that is more than years after the date of purchase ex two (2) years, but not more than five (5) y expire on the date on which p p the investment policy expires, which may not exceed four (4) years. (c) At the time an investment of public funds of the City is made having a stated final maturity that is more than two (2) years, but not more than five (5) years, the total of such investments of the City may not exceed twenty -five percent (25 %) of the total portfolio of public funds invested by the City, including balances in transaction accounts. (d) An investing officer may contract with a federally regulated investment advisor or other institutional money manager to make such investments. Voted For: Voted Against: 51∎ 1// / fir 0 ' ' MEN - drip. t: PASSED AND ADOPTED by the Common Council of the City of Jeffersonville, Clark Count, Indiana upon this 01 day of I 'J4. 012. Ji i .A16t Ed Zastawny, Pxd . sident Jeffersonville " ommon Counc 1 ATTEST: / Vicki Conlin, Clerk City of Jeffersonville PRESENTED by me to the Mayor of the City of Jeffersonville Clark County, Indiana upon this day of a dox..6.4,/ , 2012. IA - 4/Of Vicki Conlin, Clerk City of Jeffersonville SIGNED and APPROVED by me upon this day of ` I , 2012. Mike Moore, Mayor t City of Jeffersonville IC 5 -13 -9 Chapter 9. Deposit and Investment Powers IC 5- 13 -9 -0.3 Legalization of investment in certain public funds Sec. 0.3. An investment in public funds (as defined in IC 5- 13- 4 -20): (1) made or entered into before March 21, 1996; and (2) that: (A) would have been in compliance with this chapter, as amended by P.L.18 -1996, if this chapter, as amended by P.L.18 -1996, had been in effect at the time the investment was made or agreement entered into; (B) is no longer in effect on March 21, 1996; or (C) is brought into compliance with this chapter, as amended by P.L.18 -1996, not later than June 19, 1996; is legalized and validated. As added by P.L.220 -2011, SEC.93. IC 5- 13 -9 -0.4 Legalization of certain investment of public funds Sec. 0.4. An investment of public funds (as defined in IC 5- 13 -4 -20, as in effect before February 27, 1996): (1) made under a repurchase or resale agreement, including a standing repurchase or resale agreement, that was entered into before February 27, 1 996; and (2) that: (A) would have been in compliance with section 3 of this chapter, as amended by P.L.41- 1996, if section 3 of this chapter, as amended by P.L.41 -1996, had been in effect at the time the repurchase or resale agreement, including a standing repurchase or resale agreement, was entered into; (B) is no longer in effect on February 27, 1996; or (C) is brought into compliance with section 3 of this chapter, as amended by P.L.41- 1996, not later than May 27, 1996; is legalized and validated. ffi As added by P.L.220 -2011, SEC.94. IC 5- 13 -9 -1 Investment powers; funds that may be invested Sec. 1. (a) Except as provided in subsection (b), in addition to any other statutory power to make investments, each county treasurer and each fiscal officer of any political subdivision other than a county, under the guidelines established, respectively, by the board of county commissioners of each county and the fiscal body of any other subdivision, and any other officer of a local government entity authorized by statute or court order to make investments, may invest any funds held by each in accordance with this chapter. (b) The treasurer of state may invest funds under section 2.5 of this chapter. m (c) The funds that may be invested under this chapter include money raised by bonds issued for a future specific purpose, sinking funds, depreciation reserve funds, gift, bequest or endowment, and any other funds available for investment. As added by P. L.19 -1987, SEC.11. Amended by P. L.18 -1996, SEC.11, P.L. 134-1999, SEC.1; P. L. 220 -2003, SEC.1. IC 5- 13 -9 -2 Investment of funds held in securities; cost in excess of par; protecting interest in funds invested; legal custodians; safekeeping receipts Sec. 2. (a) Each officer designated in section 1 of this chapter may invest or reinvest any funds that are held by the officer and available for investment in any of the following: (1) Securities backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States and issued by any of the following: (A) The United States Treasury. (B) A federal agency. (C) A federal instrumentality. (D) A federal government sponsored enterprise. (2) Securities fully guaranteed and issued by any of the following: (A) A federal agency. (B) A federal instrumentality. (C) A federal government sponsored enterprise. (3) Municipal securities issued by an Indiana local governmental entity, a quasi - governmental entity related to the state, or a unit of government, municipal corporation, or special taxing district in Indiana, if the issuer has not defaulted on any of the issuer's obligations within the twenty (20) years preceding the date of the purchase. (b) If an investment under subsection (a)(1) is made at a cost in excess of the par value of the securities purchased, any premium paid for the securities shall be deducted from the first interest received and returned to the fund from which the investment was purchased, and only the net amount is considered interest income. (c) The officer making the investment may sell any securities acquired and may do anything necessary to protect the interests of the funds invested, including the exercise of exchange privileges which may be granted with respect to maturing securities in cases where the new securities offered in exchange meet the requirements for initial investment. (d) The investing officers of the political subdivisions are the legal custodians of securities under this chapter. They shall accept safekeeping receipts or other reporting for securities from: (1) a duly designated depository as prescribed in this article; or (2) a financial institution located either in or out of Indiana having custody of securities with a combined capital and surplus of at least ten million dollars ($10,000,000) according to the last statement of condition filed by the financial institution with its governmental supervisory body. (e) The state board of accounts may rely on safekeeping receipts or other reporting from any depository or financial institution. (f) In addition to any other investments allowed under this chapter, an officer of a conservancy district located in a city having a population of more than five thousand (5,000) but less than five thousand one hundred (5,100) may also invest in: (1) municipal securities; and (2) equity securities; having a stated final maturity of any number of years or having no stated final maturity. The total investments outstanding under this subsection may not exceed twenty -five percent (25 %) of the total portfolio of funds invested by the officer of a conservancy district. However, an investment that complies with this subsection when the investment is made remains legal even if a subsequent decrease in the total portfolio invested by the officer of a conservancy district causes the percentage of investments outstanding under this subsection to exceed twenty -five percent (25 %). (g) In addition to any other investments allowed under this chapter, a clerk- treasurer of a town with a population of more than five thousand (5,000) but less than ten thousand (10,000) located in a county having a population of more than one hundred forty thousand (140,000) but less than one hundred fifty thousand (150,000) may also invest money in a host community agreement future fund established by ordinance of the town in: (1) municipal securities; and (2) equity securities; having a stated final maturity of any number of years or having no stated final maturity. The total investments outstanding under this subsection may not exceed twenty -five percent (25 %) of the total portfolio of funds invested by the clerk- treasurer of a town. However, an investment that complies with this subsection when the investment is made remains legal even if a subsequent decrease in the total portfolio invested by the clerk- treasurer of a town causes the percentage of investments outstanding under this subsection to exceed twenty -five percent (25 %). As added by P. L.19 -1987, SEC.11. Amended by P.L. 67 -1989, SEC.1; P.L. 72 -1995, SEC 4; P. L.18 -1996, SEC.12, P. L. 54 -1999, SEC.1; P.L. 212 -1999, SEC.1; P. L.170 -2002, SEC.14, P. L. 220 -2003, SEC. 2; P. L.115 -2010, SEC. 6; P. L.119 -2012, SEC.15. IC 5- 13 -9 -2.4 Repealed (Repealed by P.L.220 -2003, SEC.6.) IC 5- 13 -9 -2.5 Permitted investments; limitations Sec. 2.5. (a) An officer designated in section 1 of this chapter may invest or reinvest funds that are held by the officer and available for investment in investments commonly known as money market mutual funds that are in the form of securities of or interests in an open -end, no -load, management -type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940, as amended (15 U.S.C. 80a et seq.). (b) The investments described in subsection (a) shall be made through depositories designated by the state board of finance as depositories for state deposits under IC 5- 13 -9.5. (c) The portfolio of an investment company or investment trust described in subsection (a) must be limited to the following: (1) Direct obligations of the United States. (2) Obligations issued by any of the following: (A) A federal agency. (B) A federal instrumentality. (C) A federal government sponsored enterprise. (3) Repurchase agreements fully collateralized by obligations described in subdivision (1) or (2). (d) The form of securities of or interests in an investment company or investment trust described in subsection (a) must be rated as one (1) of the following: (1) AAAm, or its equivalent, by Standard and Poor's Corporation or its successor. (2) Aaa, or its equivalent, by Moody's Investors Service, Inc. or its successor. (e) The form of securities in an investment company or investment trust described in subsection (a) is considered to have a stated final maturity of one (1) day. (f) The state board of accounts may rely on transaction confirmations evidencing ownership of the form of securities of or interests in an investment company or investment trust described in subsection (a). As added by P.L.134 -1999, SEC.3. Amended by P.L.115 -2010, SEC. 7. IC 5- 13 -9 -3 Repurchase agreements; funds held by officer and available for investment; obligations held as collateral Sec. 3. (a) As used in this section, "repurchase agreement" means an agreement: (1) involving the purchase and guaranteed resale of securities between two (2) parties; and (2) that may be entered into for a fixed term or arranged on an open or a continuing basis as a continuing contract that: (A) operates like a series of overnight repurchase agreements; (B) is renewed each day with the repurchase rate and the amount of funds invested determined daily; and (C) for purposes of this article, is considered to have a stated final maturity of one (1) day. (b) Each officer designated in section 1 of this chapter may enter into, with any funds that are held by the officer and available for investment, repurchase agreements: (1) with depositories designated by the state board of finance as depositories for state deposits under IC 5- 13 -9.5; and (2) involving the political subdivision's purchase and guaranteed resale of any interest - bearing obligations: (A) issued; or (B) fully insured or guaranteed; by the United States, a United States government agency, an instrumentality of the United States, or a federal government sponsored enterprise. The depository shall determine daily that the amount of money in this type of agreement must be fully collateralized by interest - bearing obligations as determined by their current market value. The collateral for this type of agreement is not subject to the provisions of section 2(c) of this chapter. (c) If the market value of the obligations being held as collateral falls below the level required under subsection (b) or a higher level established by agreement, the depository shall deliver additional securities to the political subdivision to make the agreement collateralized to the applicable level. The collateral involved in a repurchase agreement entered into under this section is not subject to the maturity limitation provided in section 5.6 of this chapter. (d) A political subdivision may invest in repurchase agreements without entering into a contract under IC 5 -13 -11 for an investment cash management system. As added by P. L.19 -1987, SEC.11. Amended by P.L. 49 -1988, SEC.1, P.L. 41 -1996, SEC. 1; P. L.18 -1996, SEC.13; P.L. 46 -1997, SEC.10; P. L.134 -2000, SEC.1. IC 5- 13 -9 -3.3 Investment of funds in obligations issued, assumed, or guaranteed by International Bank for Reconstruction and Redevelopment or African Development Bank Sec. 3.3. Each officer designated in section 1 of this chapter may invest or reinvest any funds that are held by the officer and available for investment in obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Redevelopment or the African Development Bank. As added by P.L.18 -1996, SEC.14. IC 5- 13 -9 -3.5 Investment and reinvestment of funds; participation in loans; lending securities Sec. 3.5. (a) The fiscal officer of a political subdivision or county treasurer that is located in a county containing a consolidated city may invest or reinvest any funds that are held by the fiscal officer or the county treasurer and that are available for investment in participations in loans. However, funds may be invested or reinvested in a participation in loans under this subsection only under the following conditions: (1) The principal of the participation in loans must be guaranteed by an agency or instrumentality of the United States government. (2) The participation in loans must be represented by a certificate issued by a bank that is: (A) incorporated under the laws of Indiana, another state, or the United States; and (B) insured by the Bank Insurance Fund of the Federal Deposit Insurance Corporation. (b) Funds may be invested or reinvested in a participation in loans under subsection (a) even though the certificate representing the participation in loans is not insured by the Bank Insurance Fund of the Federal Deposit Insurance Corporation. (c) A fiscal officer or county treasurer described in subsection (a) may lend any securities acquired under this section or section 2 of this chapter. However, securities may be lent under this subsection only if the agreement under which the securities are lent is collateralized by: (1) cash; or (2) interest bearing obligations that are issued by, fully insured by, or guaranteed by the United States, an agency of the United States government, a federal instrumentality, or a federal government sponsored enterprise in excess of the total market value of the loaned securities. As added by P.L.44 -1990, SEC.6. Amended by P.L.8 -1991, SEC.3; P.L.29 -1992, SEC.4; P.L.57- 1993, SEC.5; P.L.18 -1996, SEC.15; P.L.46 -1997, SEC.11. IC 5- 13 -9 -4 Deposit, investment, or reinvestment of funds in transaction accounts; certificates of deposit; deposit accounts Sec. 4. (a) Each officer designated in section 1 of this chapter may deposit, invest, or reinvest any funds that are held by the officer and available for investment in transaction accounts issued or offered by a designated depository of a political subdivision for the rates and terms agreed upon periodically by the officer making the investment and the designated depository. (b) The investing officer making a deposit in a certificate of deposit shall obtain quotes of the specific rates of interest for the term of that certificate of deposit that each designated depository will pay on the certificate of deposit. Quotes may be solicited and taken by telephone. A memorandum of all quotes solicited and taken shall be retained by the investing officer as a public record of the political subdivision under IC 5 -14 -3. If the deposit is not placed in the designated depository quoting the highest rate of interest, the investing officer shall: (1) place the deposit in the depository quoting the second or third highest rate of interest; and (2) note the reason for placing the deposit on the memorandum of quotes. (c) If all of the designated depositories of a political subdivision decline to issue or receive any deposit account, or to issue or receive the deposit account at a rate of interest equal to the highest rate being offered other investors, investments may be made in the deposit accounts of any financial institution designated for state deposits as a depository by the state board of finance under IC 5- 13 -9.5. As added by P. L.19 -1987, SEC.11. Amended by P. L. 50 -1988, SEC. 1; P. L. 44 -1990, SEC. 7; P. L. 57 -1993, SEC. 6; P. L.18 -1996, SEC. 16; P. L. 46 -1997, SEC.12; P. L.173 -2003, SEC. 2; P. L.115 -2010, SEC. 8. IC 5- 13 -9 -5 Authorization to invest in certificates of deposit; quotes from depositories Sec. 5. (a) The board of county commissioners of each county, and the fiscal body of each political subdivision other than a county, may by ordinance or resolution authorize the investing officer of each, respectively, to invest in certificates of deposit of depositories that have not been designated by the local board of finance of either but have been designated by the state board of finance as a depository for state deposits under IC 5- 13 -9.5. An ordinance or a resolution adopted under this subsection must provide that the authority granted in the ordinance or resolution expires on a date that is not later than two (2) years after the date the ordinance or resolution is adopted. (b) With respect to any money to be invested in a deposit account under subsection (a), the investing officer shall solicit quotes for the certificates of deposit from at least three (3) depositories. If only one (1) depository has been designated for the political subdivision by its local board of finance, a quote must be solicited from that depository. If two (2) or more depositories have been designated for the political subdivision by its local board of finance, at least two (2) quotes must be solicited from the depositories thus designated. The quotes may be solicited and taken by telephone. A memorandum of all quotes solicited and taken shall be retained by the investing officer as a public record of the political subdivision under IC 5 -14 -3. (c) If a deposit is not placed in the designated depository quoting the highest rate of interest, the investing officer shall follow the procedures and priority for placing deposits that are set forth in section 4 of this chapter and note the reason for placing the deposit on the memorandum of quotes. As added by P.L.19 -1987, SEC.11. Amended by P.L.47 -1991, SEC.1; P.L.18 -1996, SEC.17; P.L. 46 -1997, SEC.13; P. L.115 -2010, SEC. 9. IC 5- 13 -9 -5.3 Authorization to invest in interest bearing deposit accounts; conditions; exemption from security or pledging requirements Sec. 5.3. (a) For purposes of this section, "deposit account" does not include a deposit account described in IC 5- 13- 4 -7(5). (b) In addition to the authority to invest in certificates of deposit under section 5 of this chapter and in transaction accounts under section 4 of this chapter, and notwithstanding any other law, the board of county commissioners of each county, and the fiscal body of each political subdivision other than a county, may by ordinance or resolution authorize the investing officer of each, respectively, to invest public funds in interest bearing deposit accounts in accordance with the following conditions: (1) The funds are initially invested through a depository that is selected by the investing officer. (2) The selected depository arranges for the deposit of the funds in interest bearing deposit accounts in one (1) or more federally insured banks or savings and loan associations, wherever located, for the account of the county or political subdivision. (3) The full amount of the principal and any accrued interest of each deposit are covered by insurance of any federal deposit insurance agency. (4) The selected depository acts as a custodian for the county or political subdivision with respect to the deposits. (5) On the same date that the county's or political subdivision's funds are deposited, the selected depository receives an amount of deposits covered by insurance of any federal deposit insurance agency from customers of other institutions, wherever located, at least equal to the amount of the funds invested by the county or political subdivision through the selected depository. (c) Public funds invested in accordance with subsection (b) are not subject to any security or pledging requirements that may otherwise be applicable to the deposit or investment of public funds. As added by P. L.115 -2010, SEC.10. Amended by P. L. 31 -2012, SEC. 2. IC 5- 13 -9 -5.6 Final maturity; investment policy Revisor's Note: See IC 1- 1- 3.5 -8(b) concerning the effective date of this section as amended by P.L. 6 -2012, SEC. 59. Sec. 5.6. Except for investments allowed under section 2(0 or 2(g) of this chapter, investments made under this chapter must have a stated final maturity of not more than: (1) five (5) years after the date of purchase or entry into a repurchase agreement for a conservancy district located in a city having a population of more than five thousand (5,000) but less than five thousand one hundred (5,100); (2) five (5) years after the date of purchase or entry into a repurchase agreement for investments made from a host community agreement future fund established by ordinance of a town with a population of more than five thousand (5,000) but less than ten thousand (10,000) located in a county having a population of more than one hundred forty thousand (140,000) but less than one hundred fifty thousand (150,000); or (3) two (2) years after the date of purchase or entry into a repurchase agreement for: (A) a fund not described in subdivision (1) or (2); or (B) a political subdivision that: (i) is not described in subdivision (1) or (2); and (ii) does not have in effect an investment policy and ordinance under section 5.7 of this chapter. As added by P. L.18 -1996, SEC.18. Amended by P. L. 54 -1999, SEC.2; P. L. 212 -1999, SEC.2; P. L.170 -2002, SEC.15; P. L. 43 -2012, SEC.1. IC 5- 13 -9 -5.7 Political subdivision investment policy Sec. 5.7. (a) The fiscal body of a political subdivision may adopt an investment policy authorizing the investment of public funds of the political subdivision for more than two (2) years and not more than five (5) years. The policy must: (1) be in writing; (2) be adopted at a public meeting; (3) provide for the investment of public funds with the approval of the investing officer; (4) provide that the investments must be made in accordance with this article; (5) limit the total investments outstanding under this section to not more than twenty -five percent (25 %) of the total portfolio of public funds invested by the political subdivision, including balances in transaction accounts; and (6) state a date on which the policy expires, which may not exceed four (4) years. (b) A policy adopted by a fiscal body under subsection (a) remains in effect only through the date of expiration established in the policy, which may not exceed four (4) years. (c) A fiscal body that has adopted a written investment policy under subsection (a) may adopt an ordinance authorizing its investing officer to make investments having a stated final maturity that is: (1) more than two (2) years; but (2) not more than five (5) years; after the date of purchase or entry into a repurchase agreement. (d) An ordinance adopted by a fiscal body under subsection (c) and the power to make an investment described in subsection (c) expire on the date on which the policy expires, which may not exceed four (4) years. (e) After an investment of public funds of a political subdivision is made by the investing officer under this section, the total investments of the political subdivision outstanding under this section may not exceed twenty -five percent (25 %) of the total portfolio of public funds invested by the political subdivision, including balances in transaction accounts. However, an investment that complies with this section when the investment is made remains legal even if: (1) the investment policy has expired; or (2) a subsequent decrease in the total portfolio of public funds invested by the political subdivision, including balances in transaction accounts, causes the percentage of investments outstanding under this section to exceed twenty -five percent (25 %) of the total portfolio of public funds invested by the political subdivision. (f) An investing officer may contract with a federally regulated investment advisor or other institutional money manager to make investments under this section. As added by P. L. 43 -2012, SEC. 2. IC 5- 13 -9 -6 Interest received from investment; deposit; receipt; reinvestment; disposition Sec. 6. (a) All interest derived from an investment by a political subdivision or by any other local public officer under the authority granted by section 3 of this chapter shall be deposited, except as otherwise provided by law, in the general fund of the investment authority or in any other fund its governing body designates specifically or by rule, subject to the modifications and limitations in this section. (b) Interest from the following investments shall be receipted as follows: (1) Interest from investments of funds of a political subdivision that are traceable to United States government funds must be receipted to the fund of which they are a part, if required by federal law or regulation. (2) Interest from investments of funds controlled by court orders must be receipted to that fund unless otherwise designated by the court order. (c) Each county treasurer, if authorized by the board of county commissioners, may invest tax collections under this chapter pending distribution of the collections to political subdivisions. These investments may not: (1) exceed the amount available after giving consideration to taxes which may need to be advanced to any political subdivision; or (2) be made in deposit accounts or repurchase agreements, the maturity dates of which are later than the time when the tax collections are required by law to be distributed to political subdivisions. (d) The interest received on the investments made under subsection (c) shall be receipted to the county general fund or any other fund from which expenses incurred in the maintenance of county highways may be paid. The county fiscal body (as defined in IC 36- 1 -2 -6) shall determine the allocation of this interest among the general fund and the various highway funds into which the interest may be deposited. (e) Any political subdivision may apply the interest derived from the investment of the proceeds from bonded indebtedness or local tax levies to the appropriate redemption bond interest or sinking fund for the bonded indebtedness. (f) If meter deposits of a municipally owned utility are invested, the interest earned on the investment may be applied to and used in the operation or depreciation fund of the municipally owned utility as determined by its governing body. (g) Interest from the investment of the public funds of a political subdivision may not be paid personally or for the benefit of any public officer. As added by P. L.19 -1987, SEC. 11. Amended by P.L. 68 -1989, SEC.1; P. L.18 -1996, SEC.19. IC 5- 13 -9 -7 Repealed (Repealed by P.L.18 -1996, SEC.33.) IC 5- 13 -9 -8 Service charge to a depository; consideration in computing interest rate; payment by direct charge or from interest earned Sec. 8. Any investing officer of a political subdivision that makes a deposit in any deposit or other account may be required to pay a service charge to the depository in which the funds are deposited, if the depository requires all customers to pay the charge for providing that service. However, the service charge imposed must be considered in the computation of the interest rate for determining which depositories are entitled to investments as prescribed by sections 4 and 5 of this chapter. If the total service charge cannot be computed before the investment, the investing officer shall estimate the service charge and adjust the interest rate based on this estimate. The service charge may be paid: (1) by direct charge to the deposit or other account; or (2) in a manner that subtracts the service charge from interest earned on the funds in the deposit or other account. As added by P.L.19 -1987, SEC.11. Amended by P.L.18 -1996, SEC.20; P.L.147 -2011, SEC.1; P.L.202 -2011, SEC.1. IC 5- 13 -9 -8.5 Designation as public funds Sec. 8.5. Funds deposited in deposit accounts in accordance with this chapter and interest earned or accrued on the funds are public funds and are covered by the insurance fund. As added by P.L.18 -1996, SEC.21. IC 5- 13 -9 -9 Prohibited acts Sec. 9. An officer designated in section 1 of this chapter may not do the following: (1) Purchase securities on margin. (2) Open a securities margin account for the investment of public funds. As added by P.L. 72 -1995, SEC.5. IC 5- 13 -9 -10 County joint investment fund; participating political subdivisions; written master agreement; administration of board; interest payments Sec. 10. (a) The investing officers of two (2) or more political subdivisions located within a county may establish a joint investment fund by entering into a written master agreement that defines the rights and obligations of the participating political subdivisions. (b) An investing officer of a political subdivision that enters into a written master agreement under subsection (a) may pay funds that are held by the investing officer and that are available for investment into the joint investment fund. (c) The fund shall be administered by a board, which must be comprised of the investing officer of each of the participating political subdivisions and which must be an instrumentality of the participating political subdivisions. Each officer of a political subdivision located within the county who is designated in section 1 of this chapter may pay funds that are held by the officer and available for investment into a joint fund known as a joint investment fund. The fund is administered by a board comprised of the investing officer of each of the participating political subdivisions and is an instrumentality of the participating political subdivisions. (d) A joint investment fund must be invested and reinvested as a separate and individual fund. A joint investment fund may be invested or reinvested only in investments that are permitted for political subdivisions by this chapter. (e) A written master agreement under subsection (a) must provide the following: (1) A political subdivision may participate in a joint investment fund only with the written authorization of its local board of finance. (2) A political subdivision may participate in a joint investment fund only if its legislative body approves the written master agreement. (3) Subject to subsection (d), the board of a joint investment fund shall establish written policies for the investment and reinvestment of joint investment funds in the manner provided by IC 30- 4 -3 -3. (4) A fund shall be invested and reinvested as prescribed in subdivision (3). (5) A custodian bank or trust company located in Indiana must: (A) be selected and contracted by the board of a joint investment fund to hold the securities and other investments of the joint investment fund; (B) collect the income and other receipts from the securities and other investments; and (C) provide any other services appropriate and customary for a custodian; subject to the direction of the board of a joint investment fund. (6) The board of a joint investment fund may select and contract with a fund administrator to provide investment advice to the board and any other services determined by the board to be appropriate and necessary for the efficient administration and accounting of the joint investment fund. The fund administrator shall agree to recommend only securities and other investments as prescribed in the written policies established by the board in rendering investment advice to the board and shall agree to be responsible, accountable, and liable for any breach of this provision. The fund administrator must have experience in the investment of public funds for governmental entities and must be either of the following: (A) A financial institution located in Indiana. (B) Registered as an investment adviser with the United States Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended (15 U.S.C. 80a -9 et seq.), with public funds under management in the amount of at least one hundred million dollars ($100,000,000). (7) A joint investment fund must be audited at least annually by an independent auditing firm, with a copy of the audit provided to each participating political subdivision. (8) The administrative expenses of a joint investment fund, including fees for the fund administrator, custodian, auditor, and other professional services, must be paid from the fund's interest earnings. (9) The interest earnings that exceed the administrative expenses of a joint investment fund must be credited to each political subdivision participating in the joint investment fund in a manner that equitably reflects the differing amounts and terms of the political subdivision's investment in the joint investment fund. (10) Each participating political subdivision shall receive reports, including a daily transaction confirmation reflecting any activity in the political subdivision's account and monthly reports reflecting its investment activity in the joint investment fund and the performance and composition of the joint investment fund itself. (11) The board of a joint investment fund shall meet at least annually to review the operation and performance of the joint investment fund, the custodian, the fund administrator, the auditor, and any other professional retained by the board. (12) The board of a joint investment fund shall provide for any other policies that are necessary for the efficient administration and accounting of the joint investment fund and are consistent with the law governing the investment, management, deposit, and safekeeping of public funds of political subdivisions. As added by P. L. 224 -2003, SEC. 276. Amended by P. L. 3 -2008, SEC. 27; P. L.115 -2010, SEC.11. IC 5- 13 -9 -11 Local government investment pool Sec. 11. (a) As used in this section, "investment pool" means the local government investment pool established by subsection (b). (b) The local government investment pool is established within the office and custody of the treasurer of state. (c) An officer designated in section 1 of this chapter may pay any funds held by the officer into the investment pool for the purpose of deposit, investment, and reinvestment of the funds by the treasurer of state on behalf of the unit of government paying the funds into the investment pool. (d) The treasurer of state may pay state funds into the investment pool for the purpose of deposit, investment, and reinvestment of the state funds. (e) The treasurer of state shall invest the funds in the investment pool in the same manner, in the same type of instruments, and subject to the same limitations provided for the deposit and investment of state funds by the treasurer of state under IC 5 -13 -10.5. (f) The treasurer of state: (1) shall administer the investment pool; and (2) may contract with accountants, attorneys, regulated investment advisors, money managers, and other finance and investment professionals to make investments and provide for the public accounting and legal compliance necessary to ensure and maintain the safety, liquidity, and yield of the investment pool. (g) The treasurer of state shall establish and make public the policies that the treasurer of state will follow to ensure the efficient administration of and accounting for the investment pool. The policies must provide the following: (1) There is not a minimum time for which funds paid into the investment pool must be retained by the investment pool. (2) The administrative expenses of the investment pool shall be accounted for by the treasurer of state and shall be paid from the earnings of the investment pool. (3) The earnings of the investment pool in excess of the administrative expenses of the investment pool shall be credited to the state and each unit of government participating in the investment pool in a manner that equitably reflects the different amounts and terms of the state's investment and each unit's investment in the investment pool. (4) There is not a limit on the number of accounts that the state or a unit of government participating in the investment pool may establish within the investment pool. (5) The state and each unit of government participating in the investment pool shall receive electronic or paper reports, including: (A) a daily transaction confirmation, reflecting any activity in the state's or unit's account; and (B) a monthly report showing: (i) the state's or unit's investment activity in the investment pool; and (ii) the performance and composition of the investment pool. (6) The investment pool shall be audited at least annually by an independent auditing firm, with an electronic or a paper copy of the audit provided to the state and each unit of government participating in the pool. (7) No less than fifty percent (50 %) of funds available for investment shall be deposited in banks qualified to hold deposits of participating local government entities. (h) A unit of government participating in the investment pool may elect to have any funds due from the state wired directly to the custodian bank of the investment pool for credit to the unit's investment pool account by submitting in writing a request to the auditor of state to wire the funds as directed. An election made by a unit of government under this subsection may be revoked at any time by the unit by submitting in writing a request to the auditor of state to cease wiring the funds as previously directed by the unit. As added by P. L.117 -2007, SEC 1. INVESTMENT POLICY CITY OF JEFFERSONVILLE I. Purpose The purpose of this investment policy (the "Policy ") is to set forth the investment objectives and parameters for the management of public funds of the City of Jeffersonville (the "City "). This investment policy is designed to safeguard funds on behalf of the City, to assure the availability of funds when needed, and provide a competitive investment return. II. Scope This policy applies to the investment of all funds of the City including but not limited to, the general fund, special revenue funds, debt service funds, project funds and trust and agency funds. The City may consolidate fund balances to increase investment earnings and to increase efficiencies with regard to investment pricing, banking fees and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. III. General Objectives The primary objectives, in priority order, of investment activities shall be safety, liquidity, and return: 1. Safety Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital. The objective will be to minimize credit risk and interest rate risk. a. Credit Risk - The City will minimize credit risk, which is the risk of loss due to the failure of the security issuer or backer, by limiting investments to the types of securities listed in Section VI of this Investment Policy. b. Interest Rate Risk - The City will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities prior to maturity. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, a portion of the portfolio may be placed in money market mutual funds or government investment pools which offer same day liquidity for short-term funds. 3. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. IV. Standards of Care 1. Delegation of Authority The Controller, hereinafter referred to as the Investment Officer, shall be responsible to oversee the day - to -day management of the City's investments pursuant to Indiana Code 36- 4- 10 -4.5. Should the City elect to select an outside investment advisor, such advisor or firm must be registered under the Investment Advisor's Act of 1940. 2. Prudence The standard of prudence to be used by the Investment Officer shall be the "prudent person" standard and shall be applied in the context of managing all funds of the City. The "prudent person" standard states that, "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." 3. Ethics and Conflicts of Interest The Investment Officer and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. The Investment Officer and employees shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial /investment positions that could be related to the performance of the investment portfolio. V. Authorized Financial Institutions and Broker/Dealers 1. Authorized Financial Institutions and Broker /Dealers A list will be maintained of local financial institutions that are approved depositories for the receipt of public funds according to the State Board for Depositories. The City may pass a resolution pursuant to IC 5- 13 -9 -5 expanding the list of approved financial institutions to include all Indiana depositories approved for the receipt of public funds according to the Indiana State Board for Depositories. In addition, the City will only use broker /dealers that meet the following requirements: • Primary dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3 -1 (uniform net capital rule); • Capital of no less than $10,000,000; • Registered as a dealer under the Securities Exchange Act of 1934; • A member of the National Association of Securities Dealers (NASD); • Proof of state registration VI. Suitable and Authorized Investments Consistent with Indiana Code 5 -13 -9, the following investments will be permitted by this Policy: (1) Securities backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States and issued by any of the following: (A) The United States Treasury. (B) A federal agency. (C) A federal instrumentality. (D) A federal government sponsored enterprise. (2) Securities fully guaranteed and issued by any of the following: (A) A federal agency. (B) A federal instrumentality. (C) A federal government sponsored enterprise. (3) Municipal securities issued by an Indiana local governmental entity, a quasi - governmental entity related to the state, or a unit of government, municipal corporation, or special taxing district in Indiana, if the issuer has not defaulted on any of the issuer's obligations within the twenty (20) years preceding the date of the purchase in accordance with IC 5- 13 -9.2. (4) Money market mutual funds rated AAAm, or its equivalent, by Standard and Poor's Corporation or Aaa, or its equivalent, by Moody's Investors Service, Inc. in accordance with IC 5- 13- 9 -2.5. (5) Repurchase agreements in accordance with IC 5- 13 -9 -3 (6) Transaction accounts, certificates of deposit and deposit accounts issued or offered by a designated depository of the City's political subdivision. The investing officer making a deposit in a certificate of deposit shall obtain quotes from each designated depository in accordance with IC 5- 13 -9 -4. (7) Certificates of deposit authorized by a resolution of the City in accordance with IC 5- 13 -9 -5 and 5- 13- 9 -5.3. (8) Local government investment pools in accordance with IC 5- 13 -9 -11. Consistent with Indiana Code 36 -1 -7, the City may pass a resolution to enter into interlocal cooperation agreements for the joint exercise of powers, including the investment of public funds. VII. Investment Parameters 1. Maximum Maturities The City's investments must have a stated final maturity of not more than two years pursuant to IC 5 -13- 9-5.6. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as local government investment pools, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations. The City may adopt an ordinance, pursuant to IC 5- 13- 9 -5.7, authorizing its Investment Officer to make investments having a stated final maturity that is more than two (2) years but not more than five (5) years after the date of purchase. The total investments of the City with maturities of two (2) to five (5) years outstanding at the time of purchase may not exceed twenty -five percent (25 %) of its total portfolio of public funds invested, including balances in transaction accounts. Such ordinance expires on the date on which this Policy expires, which may not exceed four (4) years. 2. Competitive Bids The Investment Officer or its designee shall obtain competitive bids for investment with financial institutions in accordance with IC 5- 13 -9 -4. The Investment Officer or its designee shall obtain bids from at least two brokers or financial institutions on all purchases of investment instruments on the secondary market. Overnight sweep investment instruments shall not be subject to this section. VIII. Reporting During the annual meeting required by IC 5- 13 -7 -6 of The Board of Finance of the City of Jeffersonville, the Investment Officer shall make a written report to the board summarizing the City's investments during the previous calendar year. The report must contain the name of each financial institution, government agency or instrumentality, or other person with whom the political subdivision invested money during the previous calendar year. The Board of Finance shall review the report and review the overall investment policy of the City. IX. Policy Considerations 1. Adoption and Expiration This Policy shall be adopted by the City at a public meeting and shall expire four (4) years from the date of adoption in accordance with IC 5- 13- 9 -5.7. 2. Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. 3. Amendments This policy shall be reviewed periodically. Any changes must be approved by the Investment Officer and any other appropriate authority.