Resolution 7056 - Laserfiche WebLink

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7056 5-4. REPORTING The investment reporting includes budgetary, interim/internal, and annual. 1. Budgetary Reporting. As part of the annual budget process interest income shall be estimated for all budgeted funds based on a cash flow forecast. 2. Interim/Internal Reporting. The Finance Department shall provide to management and the Council a quarterly report, including the total of all investments. The report will include a description of each investment, purchase date, maturity date, rate-of-return, cost, and par value. 3. Annual Reporting. The Finance Department shall provide an annual report on the investment program. In addition to the quarter-end information the report will include an annualized rate of return, the total interest earned for the period, the current market value of the investments, and a comparison to the prior year. 5-5. INSTRUMENTS Minnesota municipalities are restricted to certain types of investments, as reflected in Minnesota Statutes 118A.04. The permissible investments are: 1. U.S. Treasury Obligations, which have the full faith and credit of the U. S. Government pledged for repayment. 2. Federal Agencies, which are created and supervised by the federal government so that, for all practical purposes, there is an absence of credit risk. 3. General Obligations of the State of Minnesota or any of its subsidiaries issued to provide for essential services that are rated by at least one national rating agency with a rating level of at least the following: • general obligation rated "A" or better • revenue obligation rated "AA" or better 4. Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated the highest quality (Al, P1, Fl, D1) by at least two nationally recognized rating agencies and matures in 270 days or less. 5. Certificates of deposit that are fully-insured by the Federal Deposit Insurance Corporation (FDIC). Deposits exceeding FDIC_insurance levels shall be covered by a surety bond or collateralized with U.S. Treasury or agency securities computed at market value which shall be at least ten percent more than the amount of each deposit in excess of the insured portions. Collateral consisting of first mortgages shall be at least forty percent more than the amount of deposit in excess of the insured portion. All collateral shall be assigned to the City from the depository. The institution issuing the certificate of deposit shall have a minimum allowable net worth to asset ratio of 5.0%. If the dealer/broker marketing the certificate of deposit subscribes to the rating service of IDC Financial Publishing, Inc., the institutions overall IDC ranking shall be excellent (165-199) or superior (200-300). 5-2