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IS <br /> FALCON HEIGHTS INVESTMENT POLICIES <br /> A. Daily Cash Balance, Cash Forecasting, and Pooling of <br /> Investments <br /> The City policy requires the pooling of all available cash <br /> and investing the total cash at the highest available rate. <br /> Efficient investment of funds starts with knowing what your <br /> cash is on a daily basis, and what your future cash needs <br /> will be, particularly for major bill paying times such as <br /> bond payment dates. This includes making weekly deposits of <br /> cash receipts and maintaining small balances in checking and <br /> savings accounts. <br /> B. SAFETY OF PRINCIPAL <br /> Safety of principal is the first priority in investing City <br /> funds. The City invests only in those investment <br /> instruments authorized by Statute. Minnesota Statutes <br /> Chapters 471.56 and 475.66 set forth the authorized <br /> investments for a municipality. <br /> C. Authorized Investments <br /> Examples of authorized investments are as follows: <br /> 1. Direct U.S. Government obligations <br /> a. Treasury Bills <br /> b. U.S. Treasury Certificates <br /> c. Treasury Notes <br /> d. Treasury Bonds <br /> e. Treasury Strip Coupon <br /> f. Treasury Receipt <br /> 2. Shares in investment companies whose only investments <br /> are U.S. Government and agency issues. <br /> 3. Obligations of the State of Minnesota. <br /> 4. Bankers acceptances of United States banks eligible for <br /> purchase by the Federal Reserve System. <br /> 5. Commercial Paper rated A -1, P -1 and F -1 for maturities <br /> of 270 days or less. <br /> 6. Irrevocable Letter of Credit (LOC). <br /> 7. Interest bearing deposits (Checking Accounts, CD's <br /> money market savings, ordinary savings) must be <br /> collateralized at a minimum of 110% of face value. <br />