INFORMATION #3 06-01-1993
CITY OF ELK RIVER
INVESTMENT POLICY
Goal
It is the intent of the City to provide maximum interest earnings
on the investment of idle funds while still maintaining safety
and liquidity.
Investment Strategy
In order to accomplish this goal, several procedures will be
completed before funds are investea:
1. Both current and longterm cash flow projections will be
completed to ensure adequate cash is available to meet
ongoing operating expenditures without having excess
idle cash on hand.
2. Quotes will be obtained from at least three investing
sources.
3. Careful consideration will be exercised in evaluating
investment yield and safety.
Investment Guidelines
1. At the first meeting of each year, the City Council
shall, as required by Minnesota Statute 118.005,
designate Official Depositories.
2. Collateral on investments shall be
required by Minnesota Statute 118.01.
maintained
as
3. Pursuant to Minnesota Statute 471.56, Subdivision 1, any
idle City funds may be invested as authorized by
Minnesota Statute 475.66. This includes the following
investments:
Certificates of Deposit
U.S. Government Securities
Federal Agency Securities
Repurchase Agreements
Commercial Paper (AlPl)
Bankers' Acceptances
4. Safety will be the main consideration when investing
public funds.
5. A diversified investment portfolio will be maintained.