06-20-07 FPAC Minutes - Laserfiche WebLink

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4)A a CeXtl1 all— c7 aiocletti CITY OF SHOREVIEW,MINNESOTA INVESTMENT POLICY Effective January 1, 1999 SCOPE: This investment policy applies to all financial assets of the City of Shoreview, Minnesota. These funds are accounted for in the City's annual financial report and include: • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds(Water, Sewer, Surface Water) • Internal Service Funds • Trust and Agency Funds This investment policy applies to all transactions involving the financial assets of the foregoing funds. Except for cash in certain restricted and special funds, the City will consolidate cash balances from all funds to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. 40 OBJECTIVES: Investments of the City of Shoreview shall be in accordance with Minnesota Statutes Chapter 118A, or as amended. The primary objectives, in priority order, of investment activities shall be safety, liquidity and yield. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses in the value of individual securities do not exceed the income generated from the remainder of the portfolio. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should consist of investments with active secondary or resale markets. The investment portfolio of the City shall be designed to attain a market- average rate of return throughout the budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio. The City will seek to place its deposits and investments with Minnesota depositories and/or brokers or dealers. All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism worthy of the • public trust. The governing body, however, recognizes that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of