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106 <br /> 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 /> 5 <br />