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IPTIP: GETTING THE MOST OUT OF
YOUR TAX REVENUE DOLLAR
By PATRICK QUINN, Illinois State Treasurer
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As public treasurers face growing pressure to make
the most on their investment of taxpayer dollars, the
Illinois Public Treasurers' Investment Pool (IPTIP) has
proven to be a reliable tool in getting a high rate of
return on public funds.
Started in 1975, IPTIP gives any custodian of public
funds a safe and convenient means to invest tax dollars
with a guaranteed high rate of return and immediate
access to invested funds. The more than $1.3 billion
invested by over 3,000 Illinois treasurers is testimony to
IPTIP's success.
Among the participants in IPTIP are county, city,
and village governments, public libraries, colleges and
schools, park districts, fire departments, road and
bridge departments, police pension funds, township
governments, and sanitary districts.
The high rate of return on IPTIP investments helps
take pressure off of community budgets, thereby reducing the need for frequent tax increases. Every dime
earned through IPTIP is further protection against
higher property taxes. This new partnership between
my office and local treasurers will protect consumers
and generate new revenues for local programs.
IPTIP gives public treasurers several advantages
over more traditional investment tools. For example,
the yield on IPTIP funds consistently exceeds the yield
on more commonly used 30-day CDs. During the past
year, IPTIP funds outpaced 30-day CDs by an average
of nearly a one-half percentage point.
The higher rate of return makes a big difference in
getting the most for the public's dollars. As Dr. Philip
Luhmann, treasurer of the City Colleges of Chicago,
said: "With the consistently high yield that IPTIP provides, we can deliver a better service to our students
and to the taxpayers."
IPTIP extends numerous advantages to its participants. Funds are always immediately available to investors, without penalty. Participants can receive deposit
of sales, income, motor fuel, and personal property
replacement tax distributive funds directly from the
State into their accounts, eliminating the time lag if
received through the mail.
All IPTIP funds are fully guaranteed through a
combination of Federal insurance and securities. Investments are made in fully collateralized time deposits, full faith and credit securities, and repurchase
agreements secured by the U.S. Treasury.
The State Treasurer's Office provides all services, so
that local investment staffs are released from tasks such
as monitoring investment maturities and constantly
evaluating collateral pledged to support their deposits.
IPTIP investors may use multiple accounts in order to
segregate the investment of general corporate funds,
bond funds, and other accounts.
The performance and convenience of IPTIP gives
public treasurers in Illinois the satisfaction of knowing
that taxpayer dollars are getting a maximum rate of
return for a minimum amount of effort. As Kathy
McDaniel, treasurer of the City of Benld, said: "With no
minimum balance, direct deposit and immediate access
to funds, we can pay our bills without delay, all the
while earning top interest dollars."
Participation in IPTIP is easy. Public treasurers need
only complete a one page application, indicating the
name of the designated depository institution and authorized signatory. The applicant may also choose to
complete a Service Selection Form, indicating the optional services they wish to use.
Upon approval of the application, the treasurer will
be notified in writing of their participation in IPTIP and
given instructions on transferring funds.
A safe, simple and reliable investment tool for public treasurers, IPTIP has shown that cooperation between state and local governments can be a profitable
venture in the best interests of the people of Illinois.
To find out more about IPTIP, call 1-800-346-
7414. •
July 1991 / Illinois Municipal Review / Page 7
