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• D. Collateralization All deposits in any bank, trust company, or thrift institution over $100,000 must be collateralized. Collateralization may be in the form of securities, or notes on first mortgages as outlined below. Any collateral pledged to the City's account shall be accompanied by an assignment thereof to the municipality from the depository. Collateral shall be deposited with the treasurer, and shall not be deposited in the bank, trust company, or thrift institution holding it. Securities_,.pledged asCollateral The total amount of collateral computed at market value must be in an amount of at least 110% of all deposits over $100,000. Securities pledged may be obligations which are legally authorized investment for debt service funds under Minnesota Statutes Annotated 475.66, Subdivision 3, and qualified state and local government obligations acceptable to the Finance Director or City Administrator. • E. Scheduled Maturity The City schedules a payroll twice a month and pays other claims every other week in conjunction with Council meetings. The City makes large bond principal and/or interest payments on February 1, March 1, June 1, August 1, and September 1 of each year. The other large claim is the Metropolitan Waste Control Commission bill which is due the first of each month. The City schedules its investments to mature with these dates when possible. F. Liquidity The City invests approximately 10-25 percent of its available funds in liquid instruments. These may be instruments such as Commercial Paper or collateralized Insured Savings Accounts (Money Market Accounts). The City will maintain small balances in checking and savings accounts. These balances will be to meet normal monthly payments, and payroll. Therefore, the purpose of having part of the City's investment portfolio in liquid funds is to insure that funds could be available should unexpected large bills be presented for payments. 2