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4.5 <br /> <br />4.6 <br /> <br />4.7 <br /> <br />4.8 <br /> <br />(Draft January 2002) Key Financial Strategies <br /> For Elk River <br /> <br />budgetary and economic cycles. The investment strategy will take <br />into account the constraints on risk and cash flow characteristics of <br />the investment portfolio. <br />Maintaining the Public's Trust: All officials and employees who are <br />part of the investment process shall seek to act responsibly as <br />custodians of the public trust. Investment officials shall avoid any <br />transaction that might impair public confidence in the <br />municipality's ability to govern effectively. <br /> <br />Authority to manage the investment program is derived from Minnesota <br />Statutes ~llSA. Management responsibility for the investment program <br />is hereby ddegated to the Finance Director. No person may engage in an <br />investment transaction except as provided under the terms of this policy <br />and the procedures established by the Finance Director. The Finance <br />Director shall be responsible for all transactions undertaken and shall <br />establish a system of controls to regulate the activities of subordinate <br />officials. <br /> <br />Officers and employees involved in the investment process shall refrain <br />from personal business activity that could conflict with the investment <br />program, or which could reasonably cause others to question or doubt <br />their ability to make impartial investment decisions. Employees and <br />investment officials shall disclose to the Finance Director any material <br />financial interests in financial institutions that conduct business within <br />this jurisdiction, and they shall further disclose' any large personal <br />financial/investment positions that could be related to the performance <br />of the portfolio. <br /> <br />The Finance Director will maintain a list of financial institutions <br />authorized to provide investment services. In addition, a list will be <br />maintained of approved security broker/dealers selected by credit <br />worthiness, who maintain an office in the State of Minnesota. These <br />may include "primary dealers" or regional dealers that qualify under <br />Securities & Exchange Commission Rule 15c3-1 (uniform net capital <br />rule). All brokers doing business with the City shall have a Broker <br />Certification form on file with the Finance Director in accordance with <br />Minnesota Statutes ~118A.04, Subd 9. All investments must be placed <br />with brokers whose office is in the State of Minnesota. No investments <br />may be made with out of state brokers. <br /> <br />Authorized and Suitable Investments: Investment instruments <br />authorized and permitted by this policy are as follows: <br /> <br />Repurchase Agreements consisting of collateral allowable in Section <br />118A.04. <br />United States Securities: Governmental bonds, notes, bills, <br />mortgages (excluding high-risk mortgage-backed securities), and <br />other securities, which are direct obligations or are guaranteed or <br />insured issues of the United States, its agencies, its <br />instrumentalities, or organizations created by an act of Congress. <br /> <br />Page <br /> 15 <br /> <br /> <br />