Laserfiche WebLink
<br />3.) A primary reporting dealer in United States government securities to the Federal Reserve <br />Bank of New York; or <br />4.) A securities broker/dealer having its principal executive office in IvIinnesota, licensed <br />pursuant to chapter 80A, or an affiliate of it, regulated by the Securities and Exchange <br />Commission; provided that the government entity's ownership of all securities is evidenced <br />by written acknowledgments identifying the securities by the names of the issuers, maturity <br />dates, interest rates, CUSIP number, or other distinguishing marks. <br /> <br />Custodial Credit Risk <br />The City will minimize investment Custodial Credit Risk by permitting brokers that obtained <br />investments for the City to hold them only to the extent there is SIPC and excess SIPC coverage <br />available. Securities purchased that exceed available SIPC coverages shall be transferred to the City's <br />custodian. <br /> <br />11.0 Diversification/Maturities <br /> <br />The City of Elk River will diversify its investments by security type and institution. In establishing <br />specific diversification strategies, the following general policies and constraints shall apply: <br /> <br />Portfolio maturities shall be staggered to avoid undue concentration of assets at a specific <br /> <br />maturity sector, with one broker-dealer or financial institution, or anyone type of <br /> <br />instrument. The maturities selected shall provide for stability of income and reasonable <br /> <br />liquidity. <br /> <br />12.0 Internal Control <br /> <br /> <br />The Finance Director shall establish an annual process of independent review by an external auditor. <br /> <br />This review will provide internal control by assuring compliance with policies and procedures. <br /> <br />13.0 Performance Standards <br /> <br />The investment portfolio will be designed to obtain a market average rate of return during budgetary <br /> <br />and economic cycles, taking into account the City of Elk River's investment risk constraints and cash <br /> <br />flow needs. <br /> <br />C: \Documents and Settings \ tallard\Local Settings \ T ernporary Internet Files \ OLKF\Investment Policy Update.doc <br />