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Vernon Hills board adopts revised investment policy extending allowable maturities to seven years
Summary
Trustees unanimously approved Resolution 2025-060 to revise the village investment policy, extending allowable maturities to seven years and adjusting issuer percentage limits; trustees asked clarifying questions about derivatives and percent limits before the vote.
The Vernon Hills Village Board unanimously adopted Resolution 2025-060, revising the village’s investment policy to allow longer maturities — extending the allowable maximum to seven years — and updating issuer percentage limits for certain instruments.
Finance Director (speaker S13) explained the primary change is lengthening allowable maturities to seven years to allow village funds to earn more interest as the portfolio grows, and noted a small increase in the maximum issuer percentage for U.S. government agencies from 20% to 25%. He said derivative products, structured products and swaps remain explicitly excluded.
Trustees asked clarifying questions about the policy’s percent-by-instrument table and whether a 100% maximum for U.S. Treasuries meant the village could theoretically hold the entire portfolio in one instrument; the finance director confirmed that the table is an allowable-maximum framework used in best-practice guidance.
After a motion, the board recorded unanimous ayes and the president declared the motion carried. The revised policy will guide the finance department’s investment decisions and be reflected in future reports to the board.
