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<br />The City of St Anthony shall invest in the following instruments as allowed by Minnesota Statutes: <br /> <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 agency issues <br /> <br />B. Supplemental Depositories <br /> <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 principle objective; additionally, liquidity and yield are <br />also considerations. It is fundamental that money is available when needed; therefore, the investment <br />goal is to maximize yield while providing cash flow to meet expected needs. <br /> <br />The City shall seek to conduct its investment transactions with various investment security brokers and <br />qualifying banks. The qualifying bank or broker must have an established reputation and reliable <br />operation. <br /> <br />The City will analyze market conditions and investment securities and attempt to secure the current <br />market rate of return on all investments consistent with security and liquidity requirements. Portfolio <br />diversification will be monitored so that investments are not concentrated in one institution, in one type <br />of investment, or purchased from one broker. <br /> <br />The investment portfolio of the City shall be structured to invest in allowable instruments that at a <br />minimum that equal the return on three month U.S. Treasury bills at time of investment, while seeking to <br />augment returns above this threshold consistent with budgetary cycles, economic conditions, risk <br />limitations, and prudent investment principles. <br /> <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 /> <br /> <br />IV. RESERVES <br />It is important for the financial sustainability 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 /> <br />Policy Statement: <br />1. The City will determine the disposition of any general fund surplus beyond the City’s minimum <br />Fund Balance as part of the annual budget process. These funds are available for appropriation by <br />the Council for unanticipated expenditures and unforeseen emergencies. <br /> <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 />72