Submitted By
Steve Drazner, CFO
Reviewed By
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Agenda Item Title
Title
A Resolution Approving and Adopting a Village of Oak Park Investment Policy
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Overview
Overview
Per the Illinois Public Funds Investment Act (IPFIA), 30 ILCS 235/0.01 et seq., municipalities must have a written investment policy governing the parameters for investing taxpayer funds. The current Village Investment Policy on file with the Finance Department is undated and it is unclear whether it was ever formally adopted by the Board. The new recommended Investment Policy for Board consideration is not materially different from the existing Policy with one exception as noted below. The Policy is derived from the conditions, restrictions, and guidelines found within the Illinois Public Funds Investment Act.
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Recommendation
Recommendation
Adopt the Resolution.
Background
Municipalities in Illinois are required to have a formal investment policy which sets forth guidelines for the safeguarding and investment of taxpayer funds. The Investment Policy presented for formal Board adoption as part of this agenda item utilizes the guidelines pursuant to the State’s Illinois Public Funds Investment Act statute for outlining the conditions and restrictions which the Village must follow when investing taxpayer funds.
There are no material or significant changes between the existing undated policy on file with the Finance Department and the updated and recommended Policy included with this agenda item for Board consideration and approval. However, one recent change under the Illinois Public Investment Act now requires that a municipality include some form of the following language within its policy:
“Material, relevant, and decision-useful sustainability factors have been or are regularly considered by the village, within the bounds of financial and fiduciary prudence, in evaluating investment decisions. Such factors include but are not limited to corporate governance, environmental factors, social capital factors, human capital factors, and business model and innovation factors.”
30 ILCS 235/2.5(a-5). All other major concepts and conditions from the existing policy will remain unchanged, most importantly the permitted investments. Some other highlights of the recommended Policy include language that deposited funds exceeding the $250,000 of FDIC coverage must be collateralized under one of the permitted methods as outlined with the Illinois Public Funds Investment Act. However, Village investments guaranteed by the full faith and credit of the United States Government will not require additional collateral.
The recommended Policy for Board consideration will not change any of the Village’s existing investments. All current village bank deposits or investments are either covered by collateral held at the Federal Reserve or in a Insured Cash Sweep (ICS) account which is covered by FDIC insurance. The Village also has one United States Treasury Note investment of approximately $10M purchased through PNC Bank which will mature on November 30, 2023.
For reference purposes only, included in this agenda item is the existing Investment Policy along with the Illinois Public Funds Investment Act.
Fiscal Impact
N/A
DEI Impact
N/A
Alternatives
Not approve the recommended Policy.
Previous Board Action
Unknown
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A