CCP 08-17-1995 - Laserfiche WebLink

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I I. Authorized Financial Dealers and Institutions: I The City of Arden Hills will conduct its investment transactions with I) financial institutions located in the State of Minnesota that are designated as depositories by the I City Council and 2) only brokers and dealers of government securities that report directly to the New York Federal Reserve Bank. The City will conduct its investment business with the most reputable firms. I At the first Council meeting of each year, the Treasurer shall offer to the City Council a list of financial dealers and institutions to be authorized in an appropriate resolution, to I provide investment service. Authorized and Suitable Investments: I r. The City is empowered to invest only in securities which are permissible under Minnesota Statute Section 475.66. These securities include Federal Debt, Mutual Funds, State and I Local Debt Banker's Acceptances, Commercial Paper, Guaranteed Investment Contracts, Mortgage Blocked Securities and Repurchase and Reverse Repurchase Agreements. However, the intent of this policy, with the sole exception of permissible securities held in I money market funds, is to limit the City's investments to Federal Debt obligations. I- Federal Debt: Government bonds, notes, bills, mortgages, and other securities, which are direct I obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an Act of Congress, excluding mortgage backed securities defmed as high risk as defined by MN Statute 475.66 Subd. 5. I Diversification: I Assets held in the investment portfolio shall be diversified to minimize the risk ofloss resulting from over-concentration of assets in a specific maturity (maturities shall be staggered in a way that avoids undue concentration of assets in a specific maturity sector), I a specific issuer or a specific class of securities. Single transactions in the excess of $1 million require prior approval of the City Council. Investment target goals by security category will be [5% in cash or cash equivalents 65% of fixed rate instruments and 20% in I zero coupon instruments. I I I- , ) I