CP068 (Investment of City Funds)CITY OF JANESVILLE Policy No. 68
Page 1 of 3
CITY COUNCIL POLICY STATEMENT
Date Issued 2/20/90
Revised 5/12/97
General Subject: Investments Revised 5/08/00
Revised 12/13/05
Specific Subject: Investment of City Funds Revised 1/12/10
Revised 11/15/11
Revised 06/14/21
Effective Date 06/15/21
Responsible Clerk Treasurer’s Office Cancellation Date
Dept./Div.: Supersedes No.
PURPOSE
To identify objectives, assign responsibilities, and establish a policy to ensure continuous prudent
investment of available City funds.
STATEMENT OF POLICY
1. Scope. This policy applies to all cash and investments of the City of Janesville. These
assets are accounted for in the City’s annual audit report and include: General Fund, Special
Revenue Fund, Capital Project Funds, Enterprise Funds, Fiduciary, Funds, and the Debt Service
Fund, and shall be administered in accordance with the provisions of this policy.
2. Legality. All investments made by the City shall be in compliance with Wisconsin State
Statutes which grant general authority for making investments with municipal funds and which
extend such authority to investment in savings banks.
3. Delegation of Authority. Management’s responsibility for the City’s investment program is
hereby delegated to the designee of the City Manager, who shall establish written procedures for
the operation of the investment program. No person may engage in an investment transaction
except as provided under the terms of this policy and the procedures established by the designee
of the City Manager.
4. Prudence. The standard of prudence to be used by the designee of the City Manager
shall be the “prudent person” and shall be applied in the context of managing the overall
investment portfolio. The designee of the City Manager, acting in accordance with written
procedures and exercising due diligence, shall be relieved of personal responsibility for an
individual security’s credit risk or price market change, provided that deviations are reported in a
timely fashion and appropriate action is taken to control these adverse developments.
CITY OF JANESVILLE Policy No. 68
Page 2 of 3
CITY COUNCIL POLICY STATEMENT
Date Issued 2/20/90
Revised 5/12/97
General Subject: Investments Revised 5/08/00
Revised 12/13/05
Specific Subject: Investment of City Funds Revised 1/12/10
Revised 11/15/11
Revised 06/14/21
Effective Date 06/15/21
Responsible Clerk Treasurer’s Office Cancellation Date
Dept./Div.: Supersedes No.
5. Instruments. Investment of the City's funds may be invested in those instruments stated
in Wisconsin State Statutes which include, but are not limited to: (a) U.S. Treasury securities; or
securities explicitly and implicitly guaranteed as to principal and interest by the federal
government; (b) certificates of deposit fully insured or collateralized at commercial banks, credit
unions and savings banks; (c) commercial paper rated A-1/P1; (d) repurchase agreements
collateralized by U.S. Treasury securities or securities guaranteed as to principal and interest by
the federal government; (e) the State of Wisconsin Local Government Investment Pool; (f)
Certificate of Deposit Account Registry Service (CDARS); (g) Securities of an open-end
management investment company or investment trust fully insured or collateralized by U.S.
Treasury or Federal securities; (h) municipal, county or school notes or bonds rated at the highest
or second highest rating category assigned by a nationally recognized rating agency; (i) municipal,
county or school notes or bonds issued by a jurisdiction in Rock County and backed by the full
faith and credit of the taxing authority. The taxing authority shall have been rated at the highest
or second highest rating assigned by a nationally recognized rating agency within the last 12
months.
6. Safety. Investments shall be undertaken in a manner that seeks to ensure the
preservation of capital. In order to attain this objective, diversification of our overall portfolio is
required. The objective will be to mitigate credit risk and rate risk.
7. Diversification. Investments shall be diversified to eliminate the risk of loss resulting from
over concentration of assets in a specific maturity, a specific issuer, and/or a specific class of
securities. In lieu of indicating specific investment amounts: (a) commercial paper shall be limited
in size to $500,000 per issuer; (b) municipal commercial paper shall be limited in size to
$1,000,000 per issuer; (c) no more than 40% of the estimated average annual portfolio may be
invested beyond 24 months; (d) no more than 60% of the portfolio may be invested in the following
categories: commercial paper or bank certificates of deposit and CDARS; and (e) local bank
balances are restricted to Wisconsin financial institutions and shall be fully insured or
collateralized.
8. Safekeeping. All investment securities purchased by the City shall be (a) held in third-
party safekeeping by an institution designated as primary agent, (b) held by a third party trust
company or bank in the brokerage firm’s name for the benefit of the City with 100% of the
investment insured or (c) held by the City of Janesville. The primary agent shall issue a
safekeeping receipt to the City listing the specific instrument, rate, maturity, and other pertinent
information.
CITY OF JANESVILLE Policy No. 68
Page 3 of 3
CITY COUNCIL POLICY STATEMENT
Date Issued 2/20/90
Revised 5/12/97
General Subject: Investments Revised 5/08/00
Revised 12/13/05
Specific Subject: Investment of City Funds Revised 1/12/10
Revised 11/15/11
Revised 06/14/21
Effective Date 06/15/21
Responsible Clerk Treasurer’s Office Cancellation Date
Dept./Div.: Supersedes No.
9. Credit Risk. The investment policy provides limits as to the type and grade of City
investments. The State of Wisconsin Local Government Investment Pool is not registered with
the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin
State Statutes Chapter 25. The City of Janesville acknowledges that the Wisconsin Local
Government Investment Pool is not rated and accepts this credit risk. State Statutes limit
investments in debt securities to the highest or second highest rating category. The City limits
investment securities to the highest or second highest rating category. This limit includes
investments in mutual funds.
10. Reporting. The designee of the City Manager shall submit a semi-annual investment
report. Such report shall summarize the investment portfolio in terms of securities held, maturities,
and amounts invested. Furthermore, this report shall indicate the annual investment return, as
compared to the amount budgeted. The City shall use the U.S. 90 day Treasury bill as our
benchmark on performance.