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3.7 <br /> <br />3.8 <br /> <br />City. The cash contribution will be three percent of gross electric sales <br />within the corporate limits of the City. The City Council will determine <br />the allocation of the contribution between the General Fund and the <br />Capital Outlay Reserve. <br /> <br />The City Council will determine the chargeback to the Sewer Fund for <br />administration of the sanitary sewer system. <br /> <br />Any other transfer of equity from an utility fund to the General Fund <br />(other than stated in 3.6) should only be done on a one-time exception <br />basis, for example, to fund an unusual, unanticipated expense. In no event <br />shall such equity transfers be made in consecutive years. Equity transfers <br />must be approved by the City Council. <br /> <br />4. Investments <br /> <br />4.1 <br /> <br />4.2 <br /> <br />It is the policy of the City of Elk River to invest public funds in a manner <br />which will provide the highest investment return with the maximum <br />security while meeting the daily cash flow demands of the entity while <br />conforming to all state and local statutes governing the investment of <br />public funds. <br /> <br />The investment policy applies to all financial assets of the municipality. <br />These funds are accounted for in the City's Annual Financial Report and <br />include all City funds with the exception of the Water and Electric Funds <br />that fall under the investment policy adopted by the Elk River Utilities <br />Commission. <br /> <br />4.3 <br /> <br />4.4 <br /> <br />Investments shall be made with judgment and care under circumstances <br />then prevailing which persons of prudence, discretion, and intelligence <br />exercise in the management of their own affairs, not for speculation, but <br />for investment, considering the probable safety of their capital as well as <br />the probable income to be derived. <br /> <br />4.3.1 <br /> <br />The standard of prudence to be used by investment officials shall <br />be the "prudent person" standard, as defined by Minnesota Statute <br />§356A.04, Subd. 2, and shall be applied in the context of managing <br />an overall portfolio. Investment officers acting in accordance with <br />written procedures and the investment policy and exercising due <br />diligence shall be relieved of personal responsibility for an <br />individual security's credit risk or market price changes, provided <br />deviations from expectations are reported in a timely fashion and <br />appropriate action is taken to control adverse developments. <br /> <br />All investments shall be limited to those permitted by Minnesota Statute <br />§ 11 SA. The primary objectives, in priority order, shall be: <br /> <br />4.4.1 Safety: Investments shall be undertaken in a manner that seeks to <br /> ensure the preservation of capital in the overall portfolio. To attain <br /> <br /> <br />