HomeMy WebLinkAboutFOREIGN FIRE INSURANCE BOARD - 08/19/1998 - C I&W,,
Elk Grove Village Fire Dept. Foreign
Fire Tax Board
August 19, 1998
Meeting called to order @ 1900hrs.
Present Absent
Pat Beck Rick Krieger
John Forde Al Mergens
Peter Gutzmer Scott Peterson
Hilda Ingebrigtsen Al Vrshek
Rich Keyworth
Jim MacArthur
Mike Rogers
Bob Stecki
(Minutes being taken by Mike Rogers)
Treasures report: An investment policy for the Board has been drawn up, this is attached.
Everyone please check your spending assignment's for this year. If you do have a budget
item, please update as to how the progress is going.
Status of budget items:
Ice machine is in(Mergens)
Hazmat videos, some in, pending others (Keyworth)
Truck belts, some are in, awaiting other sizes(Peterson)
GPS, purchase req. to be done (Beck)
Cooling Fan, PO in, being ordered (Keyworth)
Pocket Dosimeters, PO in (Keyworth/Guglielmo)
Workout clothing, Bids are out, awaiting logo (Peterson)
HazMat Trailer, spec pending (Keyworth/Stecki)
Infrared vision system, pending specs, bids & more research(Stecki)
Cell Phones for Engines, done. Extra bag phones from D/C Riddle used.
Personal Dive Equipment bags, in the work's(Rogers/Vrshek)
Helicopter Landing Kits, still researching(Beck)
Multi-Media, pending(Keyworth/Krieger)
Battery Analyzer, pending more info (Riddle)
Cell Fax Machine for Haz-Mat Squad, pending(Riddie/Keyworth)
Weight Equipment, still pending(Krieger Nedjedlo)
New Business:
Much discussion on the 2nd burner for the new training tower. The Village has proposed
to the Fire Tax board a contribution not to exceed $200,000 for the cost of the 2nd burner.
The Village has already purchased both burners and is looking for reimbursement for
one. This is a simulator fueled by natural gas made by Simtron Systems for the training
tower. One proposal by the Fire Tax Board was $50,000 over 4 year's be paid to the
Village so as not to deplete a large amount of the funds at once. It was purposed to get
shift feed back as to how the money should be spent, whether in favor or not.
There is a task force for the new training tower for planning; this is Steve Sullivan, Jim
Denna, Jim Forde, and John Guglielmo. Our Fire Dept would regulate the tower if it were
to be used by other towns. We (Fire Dept) would control the scheduling as to when it
could be used.
A request was made from the Chief for money to purchase a memorial brick for the
Illinois Firefighters Memorial that is being built in Springfield. This memorial is to honor
Illinois Firefighters who have died in the line of duty. Discussion was that the donation of
funds does not meet the Fire Tax Boards criteria for spending and can not be done. A
suggestion was made to"pass the hat" in the firehouse for donation's. This will be done.
Discussion on purchasing a portable laser printer for the Captains Car laptop computer.
This was originally in the Fire Dept budget but not approved. Motion made by Pat Beck
& seconded by Bob Stecki to redirect fund's budgeted for the cell phones for buying a
laser printer, approx. $450.00. 6 yes votes, 0 no's.
September election for Fire Tax Board member's term that expires will be postponed
until October. This is to await the results of any shift changes.
The following member's term's are up: Pat Beck, Rich Keyworth, Peter Gutzmer, Scott
Peterson, Bob Stecki.
All board members please get a need's assessment for budget item's for next year.
Budget process will be starting in September for 1999-2000.
Meeting adjourned @ 8:47pm.
Submitted b ,
Scott Peterson
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SEP^11-98 03 :00 F PROSPECT DIVE SHOP
_... 7 259 0655 P. O3
Transactions shall be madu pit a manner to ensure 5.3 Vield
that capital losses arc avoided. Investments shall
be diversified so that potential losses on single The investment portfolio shall be designed with
securities do not exceed the income generated the objective of attaining a market rate or return
from the remainder of the portfolio. throughout budgetary and economic cycles,
taking into account the investmont risk
a.Credit Risk constraints and liquidity needs. Return on
Credit Risk is the risk of loss duo to the failure of investment is of least importance compared to
the security of the issuer or backer. Credit risk the safety and liquidity objectives described
may be mitigated by: above. The core of investments arc limited to
• limiting investments to the safest types of relatively low risk securities in anticipation of
securities; earning a fair return relative to the risk being
• pre-qualifying financial institutions, assumed. Securities shall not be sold prior to
broker/dealers, intermediaries, and advisors maturity with the following exceptions:
with which an entity will do business;and, • a declining security could be sold early to
• diversifying the investment portfolio so that minimize loss of principal;
potential losses on individual sccuritics hill • a security swap would improve the quality
be minimized. yield or target duration in the portfolio;and,
• liquidity needs of the portfolio require that
b.Interest Rate Risk the security be sold.
Interest rate risk is the risk that the market value
of the sccuritics in the portfolio will fall due to 6.0 Delegation of Authority:
changes in general interest rates. Interest rate
risk may be mitigated by: Authority to manage the investment program is
• structuring the investment portfolio so that derived from the following:
securities mature to meet cash requirements
for ongoing operations, thereby avoiding the The establishment of an investment policy is the
need to soil securities on the open market responsibility of the Foreign Fire Insurance Fund
prior to maturity;and, Board Management and administrative
• investing funds required for cash flow responsibility for the investment program is
purposes in shorter-term securities. hereby delegated to the Treasurer. The Treasurer
shall establish written procedures for the
5.2 Liquidity operation of the investment program consistent
with this investment policy, Such pr000dures
The investment portfolio shall remain flexible to should include references to: safekeeping,
mixt all operating requirements that may be delivery versus payment, investment accounting,
reasonably anticipated. This is accomplished wire transfer agreements, collateral/depository
through structuring the portfolio so that securities agreements and banking service contracts. These
mature concurrently with cash needs to meet procedures shall include explicit delegalion of
anticipated demands. authority to persons responsible for investment
transactions.
Furthermore, since all possible cash demands
cannot be anticipated, the portfolio shall consist
largely of sccuritics with active secondary or re-
sale markets.
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SEP—I1-90 03 :01 P PROSPECT DIVE SHOP T 259 0655 P. 04
No person may engage in au investment receive in any manor, compensation of any kind
transaction except as provided under the terms of from any investments in which the agency is
this policy and the procedures established by the authorized to invest.
Treasurer. The 'Treasurer shall be responsible
for all transactions undertaken and shall establish 9.0 Financial Dealers and Institutions:
a syst in of controls to regulate the activities of
subordinate officials. The Treasurer may from The Treasurer will maintain a list of financial
time to time amend the written procedures in a institutions authorizer! to provide investment
manner consistent with this policy and slate services. In addition, a list will also be
statutes. maintained of approved security broker/dealers
selected by credit worthiness. Thesc may include
The 'treasurer advises the Board on investment "primary"dealers or regional dealers that qualify
policy and is an ex-officio member of the Foreign under the Securities and Exchange Commission
Fire Insurance Board. Rule 15-0-1 (uniform net capital rule). No
public deposit shall be made except in a qualified
7,0 F(hics and Conflicts of Interest: public depository as established by state statutes.
All financial institutions and brokcddealers who
Officers and employees involved in the desire to become qualified bidders for investment
investment process shall refrain from personal transactions must supply the Treasurer with the
business activity that could conflict with proper fNlawing:
execution and managernent of die investment • audited financial statements;
program or that could impair their ability to . proof of National Association of Security
make impartial decisions. Employees and Dealers(NASD)certification;
investment officials shall disclose any material a proof of stats:registration;
interests in financial institutions with which they . copies of the last two sworn statements of
conduct business. They shall further disclose any resources and liabilities which the bank or
personal financial/invcsttnent positions that could savings and loan is required to furnish to the
be related to the performance of the investment Commissioner of Banks and Trust
portfolio. Officers and employees small refrain Companies or the Commissioner of Savings
from undertaking personal investment and Residential Finance; and,
transactions with the same individual with whom a certification of having read the Fund's
business is conducted on behalf of their entity investment policy.
Exccpt for pecuniary interests pernnitted under A current audited financial statement is required
sobsection (f) of Section 3-14-4 of the Illinois to be on file for each financial institution and
Municipal Code or under Section 3,2 of the broker/dealer in which the Village invests. An
Public Officer Prohibited Practices Act, no annual review of the financial condition and
person acting as treasuror or financial officcr of registration of qualified bidders will be conducted
who is employed in any similar capacity by or for by the Treasurer.
a public agency may do any of the following.
9.0 Authorized and Suitable Investinents:
1. have any interest, directly of indirectly, in
any investments in which the agency is The Village may invest in any type of security
authorized to invest' allowed for in Illinois Compiled Statutes (30
2. have any interest, directly or utdirectly, in the ILCS 235/2) regarding the investment of public
se:llurs, sponsors, or managers of those funds. Approvect investments include:
investments; and,
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SEP-11-90 03:02 P PROSPECT DIVE SHOP 7 259 0655 P. 05
1. bonds, notes, certificates of indebtedness, 8. bonds issued by any county, city, township.
treasury bills, treasury strips or other village, incorporated town, municipal
securities, now or hereafter issued, which are corporation, or school district. The bonds
guaranteed by the full faith and credit of the shall be registered in the [tante of the Village
United States of America as to principal and or held under a custodial agreonnent at a
interest; bank. The bonds shall be rated at the tine of
2, bonds, notes, debentures, or other similar purchase within the four (4) highest general
obligations of the United States of America classifications established by a rating service:
or its agencies; of nationally recognized oxportise in rating
3. interest bearing savings accounts, interest bonds of states and their political
bearing certificates of deposit or interest subdivisions.
bearing time deposits or any other investment
constituting direct obligations of any bank as Investments may be madc only in banks which
defined by the Illinois Banking Act and is are insured by the Fcdcral Deposit Insurance
insured by the Federal Deposit Insurance Corporation.
Corporation;
4. Illinois Public Treasurer's Investment Pool; This policy shall also include any amendments
5. Short-term obligations of corporations and/or changes made to the Illinois Slate Statutes
(commercial paper) organized in the United regarding the investment of public funds.
States with assets usceeding $500 million if
(i) such obligations are rated at the time of 10.0 Collateraliildion;
purchase at one of the three highest
classifications established by at least two It is the policy of the Foreign Fire Insurance
standard rating services and which mature Fund and in accordance with the GFOA's
not later than 180 days from the date of Recommend Practices on the Collateralization of
purchase, (ii) such purchases do not exceed Public: Deposits, funds on deposit in excess of
10% of the corporations' outstanding FDIC limits be secured by sonic fort of
obligations and (iii) no more t'lan one-third collateral. The Fund will accept any of the
of the public agency's funds nu.y be invested following assets as collateral:
in commercial paper; • Goverment Securities;
6. short terns discount obligations of the Fcdcral • Obligations of Federal Agencies ;
National Mortgage Association or in shares . Obligations of Federal Instrumentalities;and,
or other forms of securities legally issuable a Obligations of the State of Illinois.
by savings banks and savings and loan
associations incorporated under the lutes of The amount of collateral provided will not be less
this state or any other state of under the laws than 110% of the fair markt value of the net
of the United Sates. Investments may be amount of public funds secured 'Ihc ratio of fair
made only in those savings banks and market value of collateral to the amount of funds
savings an loan associations the shares, or secured will be reviewed monthly, and additional
investment certificates of which are insured collateral will be required when the ratio declines
by the Federal Deposit Insurwice below the levet required and collateral will be
Corporation. released if the fair market value exceeds the
7. money market mnmal funds registered under required level. Pledged collateral will he hold in
the Investment Company Act of 1940, safekeeping, by an independent third part)-
provided that the portfolio of any such depository, or the Federal Reserve Bank of
money market mutual fund :s limited to Chicago,as designated by the Board Mcnobers of
obligations described in paragraph (1) or (2) the Foreign Fire Insurance Fund and evidenced
of this subsection and to agrcenocnts to by a safekeeping agreement.
repurchase such obligations;
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SEP-11-98 03 _03 Ph PROSPECT DIVE SHOP 259 0655 P. 06
Collateral agrccnhcnts will preclude the release of assurance that those objectives arc met. The
the pledged assets without an authorized concept of reasonable assurance rccogni7:s that
signature. The Board icalizes that there is a cost (1) the cost of the control should not exceed the
involved with coliteraiivation and the Fund will bcacfrts likely to be dcrived; and(2)the valuation
pay any reasonable and customary fees related to of costs and benefits require es6matra and
collaleraliration. judgments by management
11.0 akhfekeeoina and Custody: Accordingly, the 'Treasurer shall establish a
process for annunl independent review by ath
All security transactions entered into by the external auditor to assure compliance with
Foreign Fire Insurance Fund's Treasurer shall be policies and procedures. The internal controls
conducted on a delivery verses payment (DVP) shall address the following points:
basis. This will ensure that securities are • separation of transaction authority from
deposited in an eligible financial institution prior accounting and record keeping;
to the release of funds. Securities will be held by • custodial safekeeping;
a third party custudiart designated by the • clear delegation of authority to subordinate
Treasurer and evidenced by safeliv fling receipts. staff members;and
• written confirmation of telephone
12.0 Diversification: transactions for investment and wire
transfers,
In order to reduce the risk of default, the
investment portfolio shalt be diversified by: 15.0 Performance Standards:
• limiting investments to avoid
overconcentration in securities from a The investment portfolio will be managed in
specific issuer or business sector (excluding accordance with the parameters specified within
U.S. Treasury securities); this policy. The portfolio should obtain a market
• limiting investment in securities that have average rate of return during a marketteconomic
higher credit risks; environment of stable interest rates.
• investing in securities with varying
maturities; and, 15.1 Markt( Field(Benchmark)
• continuously investing a portion of the no basis used by the Treasurer to determine
portfolio in readily available funds such as whether market yields are being achieved shall be
the Illinois Public Treasurers' Investment the three month U.S.Treasury Bill.
Pool.
16.0 Renurtioe:
13.0 Maximum Maturities
The Treasurer shall prepare an investment report
To the extent possible, the Treasurer will attempt at least quarterly, including a management
to match its investments with anticipated cash summaq, that provides a clear picture of the
Bow requirements. status of the current invesunent portfolio.. The
report should be provided to the Foreign Fire
14.0 Internal Canlruls; Insurance Beard
The'rreasurcr is responsible for establishing and 17.0 Investment Policy Advotion:
maintaining an intcntal control structure designed
to insure that the assets of the Fund arc protected The Fomign Fire insurance Fund's Invesuucnr
from loss, (hell or misuse. The internal control Policy shall be adopted by a formal vote and
stmchne shall he dcsigncd to provide reasonabic approved by clic foreign Fire tusuraoce Beuud.
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