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• Local government investment pools either state-administered or developed through joint powers <br />statutes and other intergovernmental agreement legislation. <br /> <br />Investment in derivatives of the above instruments shall not be allowed. <br /> <br />2. Collateralization <br />Where allowed by state law and in accordance with the GFOA Recommended Practices on the <br />Collateralization of Public Deposits, full collateralization will be required on all demand deposit <br />accounts, including checking accounts and non-negotiable certificates of deposit. (See GFOA <br />Recommended Practices.) <br /> <br /> <br />VIII. Investment Parameters <br /> <br />1. Diversification <br />The investments shall be diversified by: <br />• limiting investments to avoid overconcentration in securities from a specific issuer or business <br />sector (excluding U.S. Treasury securities), <br />• limiting investment in securities that have higher credit risks, <br />• investing in securities with varying maturities, and <br />• continuously investing a portion at least 10 percent of the portfolio in readily available funds <br />such as local government investment pools (LGIPs), money market funds to ensure that <br />appropriate liquidity is maintained in order to meet ongoing obligations. (See the GFOA <br />Recommended Practice on "Diversification of Investments in a Portfolio".) <br />• never investing more than 20 percent of the portfolio in securities with final maturities <br />greater than five years <br /> <br />2. Maximum Maturities <br />To the extent possible, the City shall attempt to match its investments with anticipated cash flow <br />requirements. Unless matched to a specific cash flow, the City will not directly invest in <br />securities maturing more than ten (10) years from the date of purchase or in accordance with <br />state and local statutes and ordinances. The City shall adopt weighted average maturity <br />limitations (which often range from 90 days to 3 years), consistent with the investment <br />objectives. <br /> <br />Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the <br />portfolio should be continuously invested in readily available funds such as local government <br />investment pools or money market funds to ensure that appropriate liquidity is maintained to <br />meet ongoing obligations. <br /> <br />3. Competitive Bids <br />The Treasurer investment officer shall obtain competitive bids from at least two brokers or <br />financial institutions on all purchases of investment instruments purchased on the secondary <br />market. <br /> <br /> <br /> <br /> <br />IX. Reporting <br />