VILLAGE OF NASHVILLE
is the policy of the Village of Nashville to invest its funds in a manner which will provide the highest investment return
with the maximum security while meeting the daily cash flow needs of the Village of Nashville and comply with all state statutes
governing the investment of public funds.
This investment policy applies to all financial assets
of the Village of Nashville. These assets are accounted for in the various funds of the Village of Nashville
and include the general fund, special revenue fund, debt service funds, capital project funds, enterprise funds, internal
service funds, trust and agency funds and any new fund established by the Village of Nashville.
OBJECTIVES - safety, diversification, liquidity and return on investment
The primary objectives, in priority order, of the Village of Nashville's investment activities
Safety - safety of principal is the
foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to
insure the preservation of capital in the overall portfolio.
Diversification - the investments will be diversified by security type and institution in order that potential
losses on individual securities do not exceed the income generated from the remainder of the portfolio.
Liquidity - the investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
on investment - the investment portfolio shall be designed with the objective of obtaining a rate of return throughout the
budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the
DELEGATION OF AUTHORITY TO MAKE INVESTMENTS
Authority to manage the investment program is derived from
the following: State statute MCL 64.9 and Village Charter section XIV 74.2. Management
responsibility for the investment program is hereby delegated to the Village Treasurer per MCL 64.9, who shall establish written
procedures and internal controls for the operation of the investment program consistent with this investment policy.
Procedures should include references to; safekeeping, delivery vs. payment,
investment accounting, repurchase agreements, wire transfer agreements,
collateral/depository agreements and banking service contracts. No person may engage in an investment transaction
except as provided under the terms of this policy and the procedures established by the Village Treasurer. The
Village Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate
the activities of subordinate officials.
OF AUTHORIZED INVESTMENTS
The Village of Nashville is limited
to investments authorized by Act 20 of 1943, as amended, and may invest in the following: Bonds, Securities, and other obligations
of the United States or an agency or instrumentality of the United States; Certificates of Deposit, savings accounts, or deposit
accounts of a financial institution, but only if the financial institution is located in the State of Michigan.
All security transactions,
including collateral for repurchase agreements and financial institution deposits, entered into by the Village of Nashville
shall be on a cash basis. Securities may be held by a third party custodian designated by the treasurer
and evidenced by safekeeping receipts as determined by the treasurer.
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.