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INVESTMENTS <br />As of February 28, 2015, the City had total investments of $33,657,005, invested in the following <br />manner: <br />Percent of <br />Portfolio <br />Checking/CDs/money market $19,322,772 57.5% <br />U.S. treasuries and agencies 3,177,479 9.4 <br />Government mutual funds 1,786,035 5.3 <br />Bonds 9,370,719 27.8 <br />Total $33,657,005 100.0% <br />In October 1997, the City adopted an investment policy that is in accordance with Minnesota <br />Statutes 118A. Some highlights of the City's investment policy are as follows: <br />1. The primary objective is the safety of the principal. Investments shall be undertaken in a <br />manner that seeks to ensure the preservation of capital in the overall portfolio. The objective <br />will be to mitigate credit risks and interest rate risk. <br />a. Investments will be limited to those investments specified in Minnesota <br />Statutes 118A. <br />b. Annually appointing the financial institutions, brokers/dealers, intermediaries and <br />advisors. <br />c. Diversifying the investment portfolio so that potential losses on individual securities <br />will be minimized <br />d. Investing funds in primarily shorter -term securities. <br />2. The secondary objective is to have the portfolio remain sufficiently liquid to meet all operating <br />requirements that may be reasonably anticipated. <br />3. The third objective is to attain a market rate of return through budgetary and economic cycles, <br />taking into account the investment risk constraints and liquidity needs. <br />4. The Director of Finance and his/her appointed employees in case of unavailability are <br />authorized to manage the investment program. A system of internal controls shall be followed <br />and shall be designed to prevent losses from theft or misuse to provide reasonable assurance <br />that the objectives are met. <br />5. The Director of Finance will prepare an investment report monthly for the City Administrator. <br />6. All City Funds must be invested with financial institutions authorized to provide investment <br />services per statute 118A.06, with representatives who are licensed and with institutions which <br />have a minimum capital requirement of $5 million and at least five years of operation. <br />- 14 - <br />