Title
AMENDMENT OF THE INVESTMENT POLICY
OF THE CHICAGO PARK DISTRICT
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the Board of Commissioners adopt two amendments to the Chicago Park District's (the "Park District") current Investment Policy (the "Investment Policy"). The amendments primarily affect two sections: Section 7: Authorized and Suitable Investments and Section 8: Diversification, regarding: (i) the current parameters in Section 7, sub-section iv of Park District's Investment Policy as to Commercial Paper (the "CP"); and sub-section ix to mirror recent language changes to the Illinois Public Funds Investment Act; and (ii) change in Section 8, sub-section iv as to the maturity date and the percentage of amount held in commercial paper to a specific dollar amount.
1. Section 7 - Authorized and Suitable Investments:
a. The following parameter of sub-section iv has been amended to (i) expand the maturity date from 180 days to not to exceed 270 days to allow for more flexibility to purchase CP. The language in Section 7.iv of the Investment Policy will read as follows:
(iv) Short-term obligations (commercial paper) of only U.S. Corporations with assets over $500,000,000 provided that: (1) at time of purchase, are rated in the three highest classifications by at least two accredited rating agencies; (2) matures not more than 270 days after the date of purchase; and (3) these purchases do not exceed 5% of the corporation's outstanding obligations.
b. Recent language has been incorporated into the Illinois Public Funds Investment Act allowing public funds to be invested in interest bearing bonds in any state as well as in the State of Illinois. The language of Section 7.ix of the Investment Policy will be changed to the following to reflect recent changes to the Illinois Public Funds Investment Act:
(ix) In addition to any other investment...
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