6.3. SR 03-11-2013 - Laserfiche WebLink

Home Browse Search

4. A securities broker/dealer having its principal executive office in Minnesota, licensed pursuant to chapter 80A, or an affiliate of it,regulated by the Securities and Exchange Commission;provided that the government entity's ownership of all securities is evidenced by written acknowledgments identifying the securities by the names of the issuers, maturity dates,interest rates, CUSIP number, or other distinguishing marks. The city will minimize investment custodial credit risk by permitting brokers that obtained investments for the city to hold them only to the extent there is SIPC and excess SIPC coverage available. Securities purchased that exceed available SIPC coverages shall be transferred to the city's custodian. The city will diversify its investments by security type and institution. In establishing specific diversification strategies, the following general policies and constraints shall apply: 1. Portfolio maturities shall be staggered to avoid undue concentration of assets at a specific maturity sector,with one broker-dealer or financial institution, or any one type of instrument. The maturities selected shall provide for stability of income and reasonable liquidity. 2. The Finance Director shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 3. The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the city's investment risk constraints and cash flow needs. 4. The Finance Director shall prepare an investment report on a periodic basis and include: a. Listing of individual securities held at the end of the reporting period. b. Listing of investments by maturity date. c. Percentage of the total portfolio which each type of investment represents. d. Market-to-Market analysis. e. Rate of return for the quarter. CAPITAL IMPROVEMENT The city will maintain buildings,infrastructure,utilities,parks, facilities, and other assets in a manner that protects the investment and minimizes future maintenance and replacement costs. The Finance Director will annually prepare and submit to the City Council a Capital Improvements Plan (CIP) for the ensuing five fiscal years. At a minimum,the CIP will include a description of the proposed improvement,the estimated cost,timing and potential sources of funding. If applicable, the CIP will identify implications for the operating budget created by the proposed improvement. In most cases,private developers will be responsible for the construction of streets, sanitary sewer, watermain, and storm water collection systems needed to serve new development. The city may install infrastructure and assess property owners when this approach provides the best alternative. The city will finance street and utility oversizing and trunk utility systems. Financial Management Policies Page 6