1997-149 Council Resolution - Laserfiche WebLink

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IV. Safekeeping and Custody 1. Authorized Financial Dealers and Institutions A list will be maintained of financial institutions authorized to provide investment services. In addition, a list also will be maintained of approved security broker/dealers per statute 118A.06. Representatives within the institutions providing investments should be licensed with the appropriate federal and state agencies. A minimum capital requirement of $5,000,000 and at least five years of operation is mandatory. From time to time, the City Council may choose to invest in instruments offered by minority and community financial institutions. In such situations, a waiver to the criteria under Paragraph 1 may be granted. All terms and relationships will be fully disclosed prior to purchase and will be reported to the appropriate entity on a consistent basis and should be consistent with state or local law. These types of investment purchases should be approved by the appropriate legislative or governing body in advance. 2. Internal Controls The investment officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of The City of Lino Lakes are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. V. Suitable and Authorized Investments 1. Investment Types Consistent with Minnesota State Statute 118A, the following investments will be permitted by this policy: * U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value, * Certificates of deposit and other evidences of deposit at financial institutions, bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency; commercial paper shall mature in 270 days or less; * Investment-grade obligations of state, local governments and public authorities; * Repurchase agreements; * Money market mutual funds; * Local government investment pools, either state -administered or through joint powers statutes and other intergovernmental agreement legislation. Investment in derivatives under Minnesota State Statute 118A.04, Subd. 6 shall not be permitted. 3