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City of St Anthony <br />Financial Plan <br />II. CASH AND INVESTMENTS <br />Effective cash management is essential to good fiscal management. Investment <br />returns on funds not immediately required can provide a significant source of revenue <br />for the City. Investment policies must be well founded and uncompromisingly applied in <br />their legal and administrative aspects in order to protect the City funds being invested. <br />LEGAL ASPECTS <br />Minnesota Statutes authorize and define an investment program for municipal <br />governments. <br />A. Investment Instruments Authorization <br />• The City of St Anthony shall invest in the following instruments as <br />allowed by Minnesota Statutes: <br />a. United States Treasury obligations <br />b. Federal Agency issues <br />c. Repurchase agreements (repo's) <br />d. Certificates of deposit <br />e. Commercial paper - prime <br />f. Bankers acceptances - prime <br />g. Money Market funds investing exclusively in U. S. government <br />agency issues <br />B. Supplemental Depositories <br />ADMINISTRATIVE PROCESS <br />Investing the City funds shall be undertaken in a manner, which seeks to insure <br />the preservation of capital in the overall portfolio. Safety of principal is the <br />foremost objective; additionally, liquidity and yield are also important <br />considerations. It is essential that money is always available when needed; <br />therefore, the investment goal is to maximize yield while providing cash flow to <br />meet expenditure needs. <br />The City shall seek to conduct its investment transactions with several reputable <br />investment security dealers and qualifying banks. The qualifying bank or dealer <br />must have demonstrated, over a significant period of time, a successful, <br />profitable, and reliable operation. Special care should be exercised when <br />considering new services. <br />117 <br />