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� 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 />T ❑ The City includes interest earnings and investment summaries as part of the Comprehensive Annual <br />� Financial Report (CAFR). <br />� <br />� � � Im�lementation <br />�� See Investment and Portfolio procedures. <br />� <br />T 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 />, <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 />1 <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 />T�� . 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 />� Prudence <br />� The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule. This <br />i rule states, "Investments shall be made with judgment and care, under circumstances then prevailing, which <br />T� persons of prudence, discretion and intelligence exercise in the inanagement 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 />