Laserfiche WebLink
Investment and Portfolio Procedures <br />I <br />Pursuant To Investment Policies As Established Within The <br />2001 Annual Budget <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 Projects Funds <br />Enterprise 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, 1999 fiscal policies and these <br />administrative procedures. The City’s investment portfolio shall be managed in a manner to attain a <br />market rate of return throughout budgetary and economic cycles while preserving and protecting capital <br />in the overall portfolio.The market rate of return shall be to the same rate as the target portfolio. <br />Investments shall be made based on statutory and policy constraints. <br />Funds held for future capital projects (i.e. bond proceeds) shall be invested to produce enough income to <br />offset increases in construction costs due to inflation. Where possible, prepayment funds for long-term <br />debt service shall be invested to ensure a rate of return at least equal to the interest being paid on the <br />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 />rule states, “Investments shall be made with judgment and care, under circumstances then prevailing, <br />which persons of prudence, discretion and intelligence exercise in the management of their own affairs, <br />not for speculation, but for investment, considering the probable safety of their capital as well as the <br />probable income to be derived.” The prudent investor rule shall be applied in the context of managing the <br />overall portfolio. <br />The investment officer, acting in accordance with written procedures and exercising due diligence, shall <br />not be held personally responsible for a specific security’s credit risk or market price changes, provided <br />that these deviations are reported immediately and that appropriate action is taken to control adverse <br />developments. <br />II-22 <br /> <br />