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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 agency issues <br />B. Supplemental Depositories <br />Administrative Process: <br />Investing the City funds shall be undertaken in a manner, which seeks to insure the preservation of capital <br />in the overall portfolio. Safety of principal is the foremost objective; additionally, liquidity and yield are <br />also important considerations. It is essential that money is always available when needed; therefore, the <br />investment goal is to maximize yield while providing cash flow to meet expenditure needs. <br />The City shall seek to conduct its investment transactions with several reputable investment security <br />dealers and qualifying banks. The qualifying bank or dealer must have demonstrated, over a significant <br />period of time, a successful, profitable, and reliable operation. Special care should be exercised when <br />considering new services. <br />The City will analyze market conditions and investment securities to determine what yield can be <br />obtained and attempt to secure the best possible return on all investments consistent with security and <br />liquidity requirements. Portfolio diversification must also be considered so that investments are not <br />concentrated in one institution, in one type of investment, or purchased from one dealer. <br />The investment portfolio of the City shall be designed to attain an average rate of return regularly <br />exceeding the average return on three month U.S. Treasury bills, while seeking to augment returns above <br />this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent <br />investment principles. <br />Investment officials participating in the investment process shall seek to act responsibly as custodians of <br />the public trust and shall avoid any transaction that might impair public confidence in the City of St. <br />Anthony’s ability to govern effectively. <br />IV. RESERVES <br />It is important for the financial stability of the City to maintain reserve funds for unanticipated <br />expenditures or unforeseen emergencies, as well as to provide adequate working capital for current <br />operating needs so as to avoid short-term borrowing. <br />Policy Statement: <br />1.The City will assign annual general fund surpluses to a Contingency Reserve Fund from the prior <br />year’s General Fund budget. These funds are available for appropriation by the Council for <br />unanticipated expenditures and unforeseen emergencies. Council will review the request for <br />funding on a scheduled basis and authorize funding as necessary. In an emergency, the City <br />Manager has the authority to commit funds from the Contingency Reserve Fund. <br />2.The City will maintain fund balances in the General and Special Revenue Funds at a level which will <br />avoid issuing short-term debt to meet the cash flow needs of the current operating budget. <br />74