02-22-1999 Council Packet - Laserfiche WebLink

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MATURITIES AND mVERSf fCATION The City's policy for portfolio diversification shall be to stagger maturities which will avoid undue concentration of assets while providing stability of income and reasonable liquidity. Short-term investments will mature on or near the anticipated date of need to pay for recurring operations. Long-term investments are made for debt service requirements and from excess monies as available from the various other flmds; and an opportunity to extend maturities and achieve higher yields may exist. Maturities should not be extended beyond five years and the longer term securities may be sold if it is advantageous to do so in the opinion of the Treasurer. Generally the allowable portfolio maximum for a specific maturity is 20%; for a specific dealer is 40%; and for a specific type is 35%. RISK. PRUDENCE AND ETHICS The standard of prudence to be used by investment officials involved in the investment process shall be the "prudent investor" and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with this policy and with MN Statute 1 18A and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, as provided in MN Statute 1 18A.02 Subd 2. DELEGATION OF AUTHORITY The City Council hereby delegates the management of the investment program and the designation of depositories to the city treasurer, as authorized in Minnesota Statute 11 8A.02. In his absence the deputy treasurer or the city administrator shall exercise the same authority. The treasurer shall have full authority, as stated in Resolution No. 2089, to initiate such wire transfers or interbank transfers as may be necessary to accomplish the investment objectives as stated within this policy. The treasurer shall provide the Council with a detailed list of electronic wire transfers at the next available council meeting. The treasurer shall be authorized to designate depositories on behalf of the City Council at times other than the beginning of the year, as provided in Resolution No. 2563, and will provide to the Council the identity of each new depository and the investment purchased from that depository at the next available council meeting. .4