Laserfiche WebLink
Financial Management Policies Page 15 5 <br />an immediate and sustained parallel shift in the yield curve of plus or minus 300 <br />basis points. <br />C. Minnesota Joint Powers Investment Trust <br />Agreements or contracts for shares of a Minnesota Jjoint pPowers iInvestment tTrust whose <br />investments are restricted to securities authorized for investment by the government entity and <br />shares of an investment company registered under the Federal Investment Company Act of 1940, <br />whose shares are registered under the Federal Securities Act of 1933, as long as the investment <br />company’s fund receives the highest credit rating and is rated in one of the two highest risk rating <br />categories by at least one nationally recognized statistical rating organization and is invested in <br />financial instruments with a final maturity of no longer than 13 months. <br />D. State and Local Securities <br />State and local government obligations as follows: <br />1. any security which is a general obligation of any state or local government with taxing <br />powers which is rated “A” or better by a national bond rating service; and <br />2. any security which is a revenue obligation of any state or local government with taxing <br />powers which is rated “AA” or better by a national bond rating service; and, <br />3. a general obligation of the Minnesota Housing Finance Agency which is a moral obligation <br />of the State of Minnesota and is rated “A” or better by a national bond rating service. <br />E. Commercial Paper <br />Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated <br />in the highest quality category (e.g., A-1, P-1, F-1, or D-1 or higher) by at least two nationally <br />recognized rating agencies and matures in 270 days or less. <br />F.Time Deposits <br />Time deposits that are fully insured by the Federal Deposit Insurance Corporation. <br />Bankers acceptances of United States banks. <br />G. Money Market Accounts <br />Money market funds may be held with next day withdrawal capacity to provide for daily liquidity <br />requirements. These money market funds must be rated one of the two highest rating categories by <br />at least one nationally recognized statistical rating organization. <br />The city shall not purchase investments that, at the time of purchase, cannot be held to maturity. All <br />investments shall be purchased with the intent to hold until maturity. The maximum maturity will be 10 years <br />with a total weighted average maturity of total investments not to exceed 5five years. This section shall not <br />be construed to restrict the sale of investments prior to maturity which may be in the best interest of the city. <br />The city shall not invest in GICs or Reverse Repurchase Agreements. <br />The Ccity of Elk River will follow Minnesota statutes regarding the use of collateral requirements. In order <br />toTo anticipate market changes and provide a level of security for all funds, the collateralization level will be <br />at least ten 10 percent more than the amount on deposit plus accrued interest at the close of the business day. <br />To the extent that funds deposited are in excess ofmore than available federal deposit insurance, the <br />government entity city shall require the financial institution to furnish collateral security. <br />Page 85 of 294