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HomeMy WebLinkAbout06/25/1985 COW MAgendark r s Office COMMITTEE OF THE WHOLE AGENDA Meeting Location: Meeting Date and Time: Board Room, 2nd Floor Tuesday, June 25, 1985 112 East Northwest Highway 7:30 p.m. I. CALL TO ORDER - ROLL CALL II. ACCEPTANCE OF MINUTES OF JUNE 111* 1985 III. CITIZENS TO BE HEARD Attached to the Agenda is the final draft of a written Policy Statement covering the investment procedures and objectives that the Board should consider for adoption. The Investment Policy was developed by Finance Director David.Jepson and has been reviewed by area Finance Directors, Village auditors., local banks and the Finance Commission on June 13. Suggestions and comments from these various interests have been incorporated into the Policy Statement, (Also attached with the Agenda are the Minutes of the Finance Commission.) Mr. Jepson developed this Policy in response to a growing concern we had administratively over recent news articles about bank failures across the country and last year's difficulty with Continental Illinois National Bank. The Policy makes as its primary objective the successful preservation of capital. That is, our investment decisions will be made on the basis of investment, security and minimization of risk. One of the significant additions to prior policy is the requirement that banks collateralize municipal investments when they exceed the insurance limits of the FDIC. While that collaterization procedure will reduce potential investment yields, it will provide that added security to obtain the objective of capital preservation. After review of the Policy, it should be acknowledged and adopted by the Village Board at a regularly scheduled meeting, V. FLEXIBLE COMPENSATION PLAN With the institution of Blue Cross/Blue Shield as the health and life insurance carrier of the Village, the staff is recommending that employee contributions 'be made with pre-tax deductions as opposed to the present policy after tax deductions. In conjunction with that move, the Village is required, under Internal Revenue Services Codes and the Deficit Reduction Act of 1984, to adopt a formal Flexible Compensation Plan by the appropriate authorities, This Plan has been developed by A. S. Hansen, Inc., who also acted as our pension actuaries. It does meet the requirements of the IRS Code and the Deficit Reduction Act and sets forth applicable definitions and procedures. A brief explanation from Mr. Jepson is attached along with the Plan documents as prepared by Hansen. saiouaSV apTsano ?uipunj aspo aqvx sqT2TTTjfl suazilTo suoTsiAoia jasunS aouvuipao oi;jval maqsSS snuoq �aajvS uoiiTsinboV sai2ilTan suazT2TD SNSli as"Haaaa jNHNNXnOrQVOlIlA SSgNl"SIBS XgHIO INV *IIA s2jodex snivaS 17 aqppdn ppoN assns c aa,epdn 2uluuvTa sqjjTjTovj oiTqncl *Z ;a2vpdn j9avM 9�1.vq *L