Title
RESOLUTION TO ADOPT THE DDA INVESTMENT POLICY
Memorandum
Whereas, Michigan Public Act 20 of 1943 (PA 20) establishes a legal framework for the investment of public funds of political subdivisions of the State of Michigan, including the requirement that governing bodies, in consultation with their investment officer, shall adopt an investment policy that, at a minimum includes all of the following:
* A statement of purpose, scope, and objectives of the policy, including safety, diversification, liquidity, and return on investment
* A delegation of authority to make investments
* A list of authorized investment instruments
* A statement concerning safekeeping, custody, and prudence
Whereas, The proposed investment policy does include all of these provisions;
Whereas, PA 20 also provides a list of investment types that are permissible for investment of public funds, and the proposed investment policy does restrict the DDA to investing in instruments allowed under PA 20;
Whereas, PA 20 does stipulate that before executing an order to purchase or trade the funds of a public corporations, a financial intermediary, broker, or dealer shall be provided with a copy of the public corporation's investment policy and shall acknowledge the receipt of the policy and agree to comply with the terms of the policy, and the proposed investment policy includes that requirement;
Whereas, PA 20 does require the investment officer to provide a quarterly written report to the governing body, and that provision is included in the proposed policy as well;
Whereas, In addition to reviewing the requirements of PA 20, staff did also review the Government Finance Officer's Sample Investment Policy, as well as the City of Ann Arbor Investment Policy, and did in particular draft the DDA's Investment Policy to comply with provisions of the City's policy as is appropriate for a component unit of the City;
Whereas, The proposed investment policy has been reviewed by the City of An...
Click here for full text