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City of Mounds View Investment Policy <br /> <br />The purpose of this investment policy is guide the City Council and officials of the City in the <br />conduct of the investment program so as to obtain a reasonable rate of return on the investments <br />while minimizing risk and maintaining the public’s trust. The Finance Director shall seek to act <br />responsibly as a custodian of the public trust and shall avoid any transaction that might impair <br />public confidence in the City, the City Council, or the Administration. <br /> <br />I. Governing Authority <br /> <br />Legality <br />The investment program shall be operated in conformance with federal, state, and other legal requirements, <br />including Minnesota Statutes Chapter 118A. <br /> <br />II. Scope <br /> <br />This policy applies to the investment of all funds. <br /> <br />1. Pooling of Funds <br />Except for cash in certain restricted and special funds, the City will consolidate cash and reserve <br />balances from all funds to maximize investment earnings and to increase efficiencies with regard to <br />investment pricing, safekeeping and administration. Investment income will be allocated to the <br />various funds based on their respective participation and in accordance with generally accepted <br />accounting principles. <br /> <br />2. Personnel <br />The personnel authorized to conduct banking and investment transactions on behalf of the City <br />shall be named in the Annual Resolution Appointing Official Newspaper, Acting Mayor, <br />Official Depository, and Treasurer. Within this policy, use of the title Finance Director shall <br />mean the person appointed to that position by the City Council. The use of the title Treasurer <br />shall mean any of the persons named in the Annual Resolution Appointing Official Newspaper, <br />Acting Mayor, Official Depository, and Treasurer as being authorized to conduct banking and <br />investment transactions on behalf of the City. Duties of the Treasurer will predominantly be <br />carried out by the Finance Director, but may be carried out by any of the other named persons <br />in the Finance Director’s absence. Treasurer shall mean any person carrying out the duties of <br />the Treasurer. <br /> <br />III. General Objectives <br /> <br />The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: <br /> <br />1. Safety <br />Safety of principal is the foremost objective of the investment program. Investments shall be <br />undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The <br />objective will be to mitigate credit risk and interest rate risk. <br /> <br />a. Credit Risk <br />The City will minimize credit risk, which is the risk of loss due to the failure of the security issuer <br />or backer, by: <br />• Limiting investments to the types of securities listed in Section VII of this Investment Policy