HomeMy WebLinkAboutResolutions - 1998.03.18 - 25399MISCELLANEOUS RESOLUTION 198040 • March 19, 1998
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: TREASURER - APPROVAL OF COUNTY INVESTMENT POLICY
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
CHAIRPERSON, LADIES AND GENTLEMEN:
WHEREAS, Public Act 20 of 1943, as amended, requires that the Board of
Commissioners approves an Investment Policy for Oakland County; and
WHEREAS, the County Treasurer has submitted an Investment Policy for
Oakland County which conforms to the requirements of Public Act 20 of 1943, as
amended for approval.
NOW THEREFORE BE IT RESOLVED, that the Oakland County Board of
Commissioners hereby approves the attached Investment Policy for Oakland County,
as submitted by the County Treasurer; and
BE IT FURTHER RESOLVED, that this policy shall remain in effect until
amended or replaced.
Chairperson, on behalf of the Finance Committee, I move the adoption of the
foregoing resolution.
FINANCE COMMITTEE
INVESTMENT POLICY .FOR TIE COUNTY OF OAKLAND
As Required by Public Act 20 of 1943, as amended
1.0 PURPOSE
It is the policy of Oakland 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 held by the county treasurer. These funds are
accounted for in the county treasurer's Annual Financial
Report.
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 investments: 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 the 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 and authorized investment pools, no more
than 60'%, of the total investment portfolio will be invested in
a single security type or with a single financial institution.
5.0 DELEGATION OF AUTHORITY
Management responsibility for the investment policy is hereby
delegated to the county treasurer as required by state
statute.
6.0 AUTHORIZED INVESTMENTS
The county treasurer is authorized to invest in the following
types of securities authorized by Public Act 20 of 1943, as
amended:
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 at the
highest classification established by not less than 2 standard
rating services and that matures not more than 270 days after
the date of purchase.
6.4 Repurchase agreements consisting of instruments in
subdivision 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 as
investment grade by not less than 1 standard rating service.
6.7 Obligations described in subdivisions 6.1 through 6.6 if
purchased through an interlocal agreement under the urban
cooperation act of 1967. 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
6.8 Investment pools organized under the surplus funds
investment pool act, 1982 PA 367, MCL 129.111 to 129.118.
6.9 Investment pools organized under the local government
investment pool act, 1985 PA 121, MCL 129.141 to 129.150.
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 at least 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.
I HEREBYAPtieVVHE FOREGOINn Prr-QOLUTnI1
Y2,0/17
L. Broo atterson. County Executive Date
fi
Resolution #98040 March 19, 1998
Moved by Douglas supported by Holbert the resolution be adopted.
AYES: Coleman, Devine, Dingeldey, Douglas, Garfield, Gregory, Holbert,
Huntoon, Jacobs, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson,
Millard, Obrecht, Palmer, Powers, Schmid, Wolf, Amos. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on March 19, 1998 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 19th dalk wat, Marc -199
Lynn D. Allen, County Clerk