6. EDSR 07-15-2013 - Laserfiche WebLink

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4. Maintaining the Public's Trust All officials and employees who are part of the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the municipality's ability to govern effectively. Authority to manage the City of Elk River's investment program is derived from Minnesota Statutes §118A. Management responsibility for the investment program is hereby delegated to the Finance Director. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director. The Finance Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the investment program, or which could reasonably cause others to question or doubt their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Finance Director any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City of Elk River's portfolio. The Finance Director will maintain a list of financial institutions authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by credit worthiness,who maintain an office in the State of Minnesota. These may include "primary dealers" or regional dealers that qualify under Securities &Exchange Commission Rule 15c3-1 (uniform net capital rule). All brokers doing business with the city shall have a Broker Certification form on file with the Finance Director in accordance with Minnesota Statutes §118A.04, Subd 9. All investments must be placed with brokers whose office is in the State of Minnesota. No investments may be made with out of state brokers. Investment instruments authorized and permitted by this policy are as follows: A. Repurchase Agreements Repurchase agreements consisting of collateral allowable in Section 118A.04. B. United States Securities Governmental bonds,notes,bills,mortgages (excluding high-risk mortgage-backed securities), and other securities,which are direct obligations or are guaranteed or insured issues of the United States,its agencies,its instrumentalities, or organizations created by an act of Congress. High risk mortgage-backed securities are as follows: 1. interest-only or principal-only mortgage-backed securities;or, 2. any mortgage derivative security that: a. has an expected average life greater than ten years; b. has an expected average life that: i. will extend by more than four years as the result of an immediate and sustained parallel shift in the yield curve of plus 300 basis points; or Financial Management Policies Page 4