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96 Attachment B <br />97 <br />98 Investment Policy <br />99 <br />100 Purpose <br />101 The purpose of the Investment Policy is to ensure the most efficient use of the City's idle funds, and to <br />102 ensure the best return on these funds while making only those investments allowed by law. <br />103 <br />104 Policy <br />105 <br />106 The City will make a cash flow analysis of all funds on a regular basis. Disbursement, collection, <br />107 and deposit of all funds will be scheduled to ensure maximum cash availability. <br />108 When permitted by law, the City will pool cash from several different funds for investment <br />109 purposes. <br />110 The City will invest 99 percent of its idle cash on a continual basis. <br />111 The City will obtain the best possible return on all cash investments. Such investments will only <br />112 be those legally permissible under Minnesota law. <br />113 The accounting system will provide regular information concerning cash position and investment <br />114 performance. <br />115 The City will make arrangements for banking services on a contractual basis for a specified <br />116 period of three years, with specified fees for each service rendered. <br />117 The City includes interest earnings and investment summaries as part of the Comprehensive <br />118 Annual Financial Report (CAFR). <br />119 <br />120 Implementation <br />121 See Investment and Portfolio procedures. <br />122 <br />123 Investment and Portfolio Procedures <br />124 Scope <br />125 These investment and portfolio procedures apply to the activities of the City with regard to investing the <br />126 financial assets of all funds, including the following: <br />127 <br />128 General Fund <br />129 Special Revenue Funds <br />130 Capital Project Funds <br />131 Debt Service Funds <br />132 Special Service Funds <br />133 Internal Service Funds <br />134 Trust and Agency Funds <br />135 <br />136 Objectives <br />137 Funds of the City will be invested in accordance with Minnesota Statutes, Council-approved fiscal <br />138 policies and these administrative procedures. The City's investment portfolio shall be managed in a <br />139 manner to attain a market rate of return throughout budgetary and economic cycles while preserving and <br />140 protecting capital in the overall portfolio. <br />141 <br />142 The market rate of return shall be to the same rate as the target portfolio. Investments shall be made based <br />143 on statutory and policy constraints. Funds held for future capital projects (i.e. bond proceeds) shall be <br />144 invested to produce enough income to offset increases in construction costs due to inflation. Where <br />Page 5 of 8 <br /> <br />