Number
110766
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
A substitute ordinance relating to investment of city pooled funds.
Sections
304-6 cr
304-46 cr
Analysis
This ordinance authorizes the city comptroller to invest pooled city funds provided:
1. All investments are in compliance with the restrictions established by s. 66.0603, Wis. Stats.
2. The city comptroller issues commercial paper authorized through the public debt commission and in consultation with the city treasurer concerning the city's cash flow and the need for available funds to pay city obligations.
3. The city treasurer provides the city comptroller's office with timely access to all information and systems relating to funds on hand in the city treasury necessary to implement investment of city pooled funds.
The ordinance also requires that the common council annually review the performance of the city comptroller concerning the investment of pooled funds.
Furthermore, the ordinance authorizes the city treasurer to invest those city funds not authorized for investment by the city comptroller.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 304-6 of the code is created to read:
304-6. Investment of City Pooled Funds.
1. DEFINITIONS. In this section:
a. "Local government investment pool" means the fund defined in s. 25.50, Wis. Stats.
b. "Pooled funds" means all unrestricted city funds. Pooled funds shall not include debt service funds, funds in the public debt amortization fund or any restricted funds, but shall include the following:
b-1. General funds that are not immediately needed to pay for obligations of the city.
b-2. Enterprise funds, including funds of the Milwaukee water works or of the sewer maintenance fund.
b-3. Proceeds from revenue anticipation note borrowing.
b-4. School operations, school construction and school extension funds.
c. "Total return" means the capital appreciation on the portfolio and the income received on the portfolio.
2. INTENT. It is the intent of the city to issue commercial paper to enable all available pooled funds, to the maximum extent practicable, to be annually placed in investments other than the state of Wisconsin local government investment pool, to reduce the impact of liquidity needs on investment options, and to enhance investment performance relative to that available through the local government investment pool and bank deposits.
3. INVESTMENT AUTHORITY. Pursuant to s. 18.01 of the charter, the common council vests the authority to invest pooled funds with the city comptroller, subject to the following conditions:
a. All investments shall be in compliance with the restrictions established by s. 66.0603, Wis. Stats.
b. The city comptroller shall issue commercial paper authorized through the public debt commission and in consultation with the city treasurer concerning the city's cash flow and the need for available funds to pay for obligations of the city.
c. The city treasurer shall provide the city comptroller's office with timely access to all information and systems relating to funds on hand in the city treasury necessary to implement investment of city pooled funds.
4. INVESTMENTS. Pursuant to s. 66.0603 (2), Wis. Stats., the city comptroller may contract for the investment of funds not immediately needed to pay for obligations of the city with a company authorized to transact business in this state, subject to the following conditions:
a. The financial institution is authorized to exercise trust powers under
b. The common council shall approve annually the investment agreement between the city comptroller and the bank or trust company with which the funds are invested. The common council shall also review annually the performance of the bank or trust company with which funds are invested.
5. COMMON COUNCIL REVIEW. The common council shall annually review the performance of the city comptroller concerning the investment of pooled funds. The review shall include, but need not be limited to, the following information:
a. Income on the portfolio.
b. Total return on the portfolio.
c. A comparison of investment results for pooled funds with the return for the preceding year earned by the local government investment pool.
d. A comparison of investment results for pooled funds with the total return for the preceding year earned on funds not immediately needed by other municipal governments in the state of Wisconsin.
e. Compliance with the restrictions set forth under s. 66.0603, Wis. Stats.
Part 2. Section 304-46 of the code is created to read:
304-46. Investment of Funds by City Treasurer. Pursuant to s. 18.01 of the charter, the common council vests the authority to invest funds not authorized for investment by the comptroller under s. 304-6 to the city treasurer.
LRB
APPROVED AS TO FORM
____________________________
Legislative Reference Bureau
Date: ______________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
____________________________
Office of the City Attorney
Date: ______________________
Requestor
DOA-Budget and Management Division
Drafter
LRB134218-2
Teodros W. Medhin/lp
10/19/2011