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<br />7. Concentration of Credit Risk <br /> <br /> <br />No more than 5% of the overall portfolio may be invested in the securities of a single <br />issuer, except for the securities of the U.S. Government, or a maximum of25% with any <br />individual counter party in an external investment pool. <br /> <br />8. Investment Depositories and Authorized Dealers <br /> <br />Annually, the City Council will designate by resolution depositories, security dealers and <br />financial institutions authorized to provide banking and investment services to the City. Prior to <br />completing an initial transaction each year with a broker/dealer, the City shall provide to the <br />broker/dealer a copy ofthe City's Investment Policy and a copy of the Notification to Broker and <br />Certification by Broker as required by Minnesota Statutes Chapter 80A. The broker/dealer must <br />sign and return the Notification to Broker and Certification by Broker and agree to handle the <br />City's account in accordance with the City's Investment Policy and provide a copy of their <br />broker's insurance coverage for their firm. <br /> <br />9. Investment Earnings <br /> <br />Interest earnings will be credited to the source ofthe invested funds at the end of each <br />month based on the average daily cash balances during the month. Market value adjustments <br />and interest accruals will be allocated at the end of the fiscal year based on the average cash <br />balances during the fiscal year. <br /> <br />10. Reporting and Review <br /> <br />A listing ofthe City's investment portfolio shall be included in the financial report to the <br />City Council at the end of each fiscal quarter. The list should include date of purchase and <br />maturity, type of investment, firm invested at, yield, interest rate, and comparison to the <br />benchmark set forth in this policy. <br /> <br />11. Exemption <br /> <br />Any investment currently held that does not meet the guidelines of this policy shall be <br />exempted from the requirement ofthis policy. Upon maturity, if funds are re-invested the new <br />securities must conform to this policy. <br /> <br />12. Review and Approval <br /> <br />The investment policy shall be formally approved and adopted by resolution the City <br />Council and any future changes to the policy must be approved by the City Council. <br /> <br />6 <br />