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<br /> <br />Attachment A <br />Investment Policy <br /> <br /> Revised March 8, 2022 <br /> <br /> <br />The procedures shall consist of yield curve analysis and implemented with the appropriate purchase of <br />the above investments. Maturity scheduling shall be within those investments and in a manner that will <br />maximize yield and liquidity and minimize interest rate risk. <br /> <br />Equity Investment option for Capital Reserves <br />Under Minnesota Statute 118A.09, as AAA rated City, Roseville has the additional option of investing <br />in long-term equity investments with the State Board of Investment. This option will only be used to <br />invest long-term capital reserves and the maximum invested would be 15% of the unassigned capital <br />reserves. If this option is utilized, the City Council must adopt a resolution that includes the following: <br /> The governing body understands that investments under this section have a risk of loss; <br /> The governing body understands the type of funds that are being invested and the specific <br />investment itself; and <br /> The governing body certifies that all funds designated for investment through the State Board of <br />Investment meet the requirements in this section and the policies and procedures established by <br />the State Board of Investment. <br /> <br />Competitive Selection of Investment Instruments <br />Before the City invests any surplus funds, a competitive "bid" process shall be conducted. If a specific <br />maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids <br />will be requested for instruments that meet the maturity requirement. If no specific maturity is required, <br />a market trend (yield curve) analysis will be conducted to determine which maturities would be most <br />advantageous. Bids will be requested from financial institutions for various options with regards to term <br />and instrument. The City will accept the bid that provides the highest rate of return within the maturity <br />required and within the parameters of these procedures. <br /> <br />Bids for purchases through the treasury auctions are not required. Records will be kept of the bids <br />offered, the bids accepted and a brief explanation of the decision that was made regarding the <br />investment. <br /> <br />Settlement <br />All settlements of investments shall be on a "Delivery vs. Payment" (DVP) basis. Physical delivery shall <br />be avoided if at all possible, with book entry being the preferred method of safekeeping. <br /> <br />Safekeeping and Collateralization <br />All investment securities purchased by the City shall be held in third-party safekeeping by an institution <br />designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the <br />specific instrument, rate, maturity and other pertinent information. <br /> <br />Reporting Requirements <br />The investment officer shall generate daily and monthly reports for management purposes. The annual <br />investment report shall be completed on a time weighted basis and shall be included as part of the <br />Comprehensive Annual Financial Report to the City Council. The target portfolio shall be the U.S. <br />Government Bond Yield Index for the comparable period. <br />Page 3 of 3 <br /> <br />