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monies are expected to be needed to pay for <br />recurring operations. <br />B.Long-term investments are made for debt service <br />requirements and from excess monies available from <br />the various other funds as permitted from time to <br />time; and an opportunity to extend maturities and <br />achieve higher yields may exist. Maturities should <br />not be extended beyond five years and the Treasurer <br />may sell the longer term securities if it is <br />advantageous in his/her opinion to do so. <br />It is the policy of the City to diversify its investment <br />portfolio. Investments shall be diversified to eliminate the <br />risk of loss resulting from the overconcentration of assets in a <br />specific maturity^ a specific issuer or a specific class of <br />maturities. <br />The maximums to be generally adhered to are 20% for a <br />specific maturity; 40% for a specific issurer, bank, or dealer; <br />and 35% for a specific class (instrument) of maturities. <br />VIII. Risks, Prudence and Ethics <br />The City recognizes that investment risks can result from <br />issuer defaults or market price changes. The Minnesota Statutes <br />governing permissible investments and the diversification <br />guidelines are designed to control risk to some degree. The <br />Treasurer is expected to display prudence in the selection of <br />securities, as a way to minimize default risk. In the event of a <br />default by a specific issuer, the Treasurer shall review, and if <br />appropriate, proceed to liquidate securities having comparable <br />credit risks. The treasurer in exercising due diligence shall be <br />relieved of personal responsibility for an individual security's <br />credit risk or market price changes provided that reasonable <br />action is taken to control adverse developments. <br />Any officer or employee involved in the investment process <br />shall refrain from personal business activitiy that could <br />conflict, or gives the appearance of a conflict, with proper <br />execution of the investment program or impair the ability to make <br />impartial investment decisions. <br />IX. Delegation of Authority <br />The City Council hereby delegates the management of the