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Policy ❑ The City will make a cash flow analysis of all funds on a regular basis. Disbursement, collection, and deposit of all funds will be scheduled to ensure maximum cash availability. ❑ When permitted by law, the City will pool cash from several different funds for investment purposes. ❑ The City will invest 99 percent of its idle cash on a continual basis. ❑ The City will obtain the best possible return on all cash investments. Such investments will only be those legally permissible under Minnesota law. ❑ The accounting system will provide regular information concerning cash position and investment performance. ❑ The City will make arrangements for banking services on a contractual basis for a specified period of three years, with specified fees for each service rendered. ❑ The City includes interest earnings and investment summaries as part of the Comprehensive Annual Financial Report (CAFR). Implementation See Investment and Portfolio procedures. Investment and Portfolio Procedures Scope These investment and portfolio procedures apply to the activities of the City with regard to investing the financial assets of all funds, including the following: ❑ General Fund ❑ Special Revenue Funds ❑ Capital Project Funds ❑ Debt Service Funds ❑ Special Assessment Funds ❑ Internal Service Funds ❑ Trust and Agency Funds Objectives Funds of the City will be invested in accordance with Minnesota Statutes, Council-approved fiscal policies and these administrative procedures. The City's investment portfolio shall be managed in a manner to attain a market rate of return throughout budgetary and economic cycles while preserving and protecting capital in the overall portfolio. The market rate of return shall be to the same rate as the target portfolio. Investments shall be made based on statutory and policy constraints. Funds held for future capital projects (i.e. bond proceeds) shall be invested to produce enough income to offset increases in construction costs due to inflation. Where possible, prepayment funds for long-term debt service shall be invested to ensure a rate of return at least equal to the interest being paid on the bonds.