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<br />6. Statewide Investment Pools which invest in authorized instruments according to <br />MN Statutes 118A.04. <br /> <br />. <br /> <br />7. Monev Market Mutual Funds which invest in authorized instruments according to <br />MNStatutes 118A.04. <br /> <br />Interest-bearing deposits in authorized depositories must be fully insured or <br />collateralized. <br /> <br />COLLATERALIZATION <br /> <br />Collateralization will be required on two types of investments: certificates of deposit and <br />repurchase agreements. In order to anticipate market changes and provide a level of <br />security for all funds, the collateralization level will be 110 percent of the market value of <br />principal and accrued interest. When the pledged collateral consists of notes secured by <br />first mortgages, the collateral level will be 140% of the market value of principal and <br />accrued interest. Collateral shall be deposited in the name of the City of Centerville <br />subject to release by the city's Finance Director. All certificates of deposit and <br />repurchase agreements purchased by the city shall be held in third-party safekeeping by <br />an institution designated as primary agent. The primary agent shall issue a safekeeping <br />receipt to the city listing the specific instrument rate maturity and other pertinent <br />information. All deposits will be insured or collateralized in accordance with MN <br />Statutes Chapter 118. <br /> <br />SAFEKEEPING AND CUSTODY <br /> <br />When investments purchased by the city are held in safekeeping by a broker/dealer, they <br />must provide asset protection of $500,000 through the Securities Investor protection <br />Corporation (SIPC) and at least another $2,000,000 supplemental insurance protection. <br /> <br />DIVERSIFlCATION <br /> <br />-+ <br /> <br />The city will attempt to diversify its investments according to type and maturity. The <br />portfolio, as much as possible, will contain both short-term and long-term investments. <br />The city will attempt to match its investments with anticipated cash flow requirements. <br />Extended maturities may be utilized to take advantage of higher yields; however, no more <br />than 15-20% of the total investments should extend beyond five (5) years and in no <br />circmnstance should any extend beyond eight (8) years. <br /> <br />INVESTMENT REPORTING <br /> <br />The Finance Director shall prepare an investment report at least quarterly, including a <br />management smnmary that provides a clear picture of the status of the current investment <br />portfolio and transactions made over the last quarter. <br /> <br />-4- <br /> <br />j <br />