Laserfiche WebLink
120 <br />121 <br />122 <br />123 <br />124 <br />125 <br />126 <br />127 <br />128 <br />129 <br />130 <br />131 <br />132 <br />133 <br />134 <br />135 <br />136 <br />137 <br />138 <br />139 <br />140 <br />141 <br />142 <br />143 <br />144 <br />145 <br />146 <br />147 <br />148 <br />149 <br />150 <br />151 <br />152 <br />153 <br />154 <br />155 <br />156 <br />157 <br />158 <br />159 <br />160 <br />161 <br />162 <br />163 <br />164 <br />165 <br />166 <br />167 <br />those legally permissible under Minnesota law. <br />❑ The accounting system will provide regular information concerning cash position and investment <br />performance. <br />❑ The City will make arrangements for banking services on a contractual basis for a specified <br />period of three years, with specified fees for each service rendered. <br />❑ The City includes interest earnings and investment summaries as part of the Comprehensive Annual <br />Financial Report (CAFR). <br />Implementation <br />See Investment and Portfolio procedures. <br />Investment and Portfolio Procedures <br />Scope <br />These investment and portfolio procedures apply to the activities of the City with regard to investing the <br />financial assets of all funds, including the following: <br />❑ General Fund <br />❑ Special Revenue Funds <br />❑ Capital Project Funds <br />❑ Debt Service Funds <br />❑ Special Assessment Funds <br />❑ Internal Service Funds <br />❑ Trust and Agency Funds <br />Objectives <br />Funds of the City will be invested in accordance with Minnesota Statutes, Council - approved fiscal policies <br />and these administrative procedures. The City's investment portfolio shall be managed in a manner to attain <br />a market rate of return throughout budgetary and economic cycles while preserving and protecting capital <br />in the overall portfolio. <br />The market rate of return shall be to the same rate as the target portfolio. Investments shall be made based <br />on statutory and policy constraints. Funds held for future capital projects (i.e. bond proceeds) shall be <br />invested to produce enough income to offset increases in construction costs due to inflation. Where <br />possible, prepayment funds for long -term debt service shall be invested to ensure a rate of return at least <br />equal to the interest being paid on the bonds. <br />Delegation of Authority <br />The Finance Director is designated as investment officer of the City and is responsible for investment <br />decisions and activities, under the direction of the City Manager. <br />pr»�PYIhP <br />The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule. This <br />rule states, "Investments shall be made with judgment and care, under circumstances then prevailing, which <br />persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for <br />speculation, but for investment, considering the probable safety of their capital as well as the probable <br />income to be derived." The prudent investor rule shall be applied in the context of managing the overall <br />portfolio. <br />Page 4 of 7 <br />