TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 20, 2025
COMMITTEE ON FINANCE
Mr. Brian A. Perkovich, Executive Director
Title
Revised Investment Policy for the Metropolitan Water Reclamation District of Greater Chicago dated as of March 20, 2025
Body
Dear Sir:
Attached for the Board’s consideration and adoption is the revised Investment Policy for the Metropolitan Water Reclamation District of Greater Chicago.
The revised Investment Policy institutes recommendations from Treasury staff in response to updates to the Illinois Public Funds Investment Act (30 ILCS 235). Section 235/8 of Illinois Compiled Statutes requires that the District consider financial institution’s record and current level of commitment to its local community when deciding whether to deposit public funds in that financial institution.
A second change reflects the merger of the Bank Insurance Fund and the Savings Association Insurance Fund into the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (FDIC) per Federal Deposit Insurance Act of 2005.
A third change reworded the generic reference to credit rating agencies with their proper designation - Nationally Recognized Statistical Rating Organizations (NRSROs) as approved by the U.S. Securities and Exchange Commission (SEC, Credit Agency Reform Act of 2006).
A fourth change updated collateral pricing requirements to be consistent throughout the investment policy statement and adhere to the Illinois Public Funds Investment Act Section 235/6d (30 ILCS 235) for funds above the FDIC insurance limit. Monthly collateral review and reporting of collateral is completed in accordance with GFOA best practices.
It is recommended that the revised Investment Policy be adopted by the Board of Commissioners as the official Investment Policy of the District for the management and investment of District funds.
Requested, Steven J. Lux, Treasurer, SJL:EH
Respectfully Submitted, Marcelino Garcia, Chairman Committee on Finance
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 20, 2025
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