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5.k Resolution 10-16-18-06 Adopting an Investment PolicyCITY OF SCANDIA RESOLUTION NO.: 10-16-18-06 RESOLUTION ESTABLISHING AN INVESTMENT POLICY WHEREAS, the Scandia City Council has determined that an investment policy is necessary to provide guidance to staff involved in the investment of funds that are not need to meet immediate cash flow needs; and WHEREAS, the objectives of the policy are:  Safety of the investment  Liquidity of the Investment  Rate of return on the investment WHEREAS, the Scandia City Council has determined that the Purchasing Policy adopted on July 15, 2008 needs to be updated. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it should and hereby does adopt the attached “Investment Policy”, said policy taking precedence over any other policy that may have been established in the past that may be in conflict. Adopted by the Scandia City Council this 16th day of October, 2018. ________________________________ Christine Maefsky, Mayor ATTEST: ___________________________________ Administrator/ City Clerk City of Scandia Investment Policy Approved by the City Council October 16, 2018 Safety: is the first investment objective. Investment options shall be considered in a manner that seeks to ensure the preservation of the principal. To obtain this objective, diversification is to be considered in the type of investment, maturity and the investment institution where the investment is located. For checking accounts and savings accounts collateral may be required. Such collateral requirements will be monitored on a monthly basis. Certificates of deposit will not be purchased beyond the FDIC limitations on insurance of said certificates. Liquidity: is the second investment objective to be considered. The investment portfolio must remain sufficiently liquid to enable the City to meet its cash flow requirements as may be reasonably anticipated. Liquidity in the face of changing market conditions will also be a consideration in determining the term of any investment purchased. The Return on the Investment: is the third investment objective. The investment portfolio should be designed with the objective of attaining a market rate of return through the budgetary and economic cycles taking into constraints of risk and cash flow characteristics of the investment portfolio. The City’s Investment policy and practices will conform to Minnesota Statutes 118A. Management of the City’s investment activity is delegated to the City Administrator or designee. No person will engage in an investment transaction on behalf of the City’s except as provided under the terms of this policy and the procedures established to maintain this program. Employees and other city officials involved in the investment process shall refrain from personal business activity that could conflict with the City’s investment program or could reasonably expect the public to question or doubt the ability to make impartial, objective investment decisions. Any such conflict or potential conflicts must be declared to the City Administrator as soon as such conflict or potential conflict is known. The City Council will annually approve the financial institutions or broker/dealers authorized to provide investment services. All broker/dealers providing investment services shall have a Broker Certification form properly completed annually and on file with the City Investment authorized and permitted by this policy are as follows:  United States Securities including governmental bonds, notes, bills, mortgages 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 ( e.g. U.S. Treasury bills, Federal Home Loan Bank Resolution No.: 10-16-18-06 3 Notes, other government backed securities, etc.) when the intention is to hold the security to maturity in order to minimize investment risk.  Minnesota Joint Powers Investment Trust agreements or contracts for shares of a Minnesota joint powers investment trust whose investments are restricted to securities authorized for investment by the City and shares of an investment company registered under the Federal Securities Act of 1940, whose shares are registered under the Federal Securities Act of 1933, as long as the investment company receives the highest credit rating and is rated in one of the two highest risk categories by at least one nationally recognized statistical rating organization and is invested in financial instruments with a final maturit y of no longer than 13 months (e.g. the Minnesota Municipal Money Market (4M Fund).  Time deposits/certificate of deposits fully insured by the Federal Deposit Insurance Corporation. Investment transactions are to be documented by the City’s finance department. Investment confirmations are received from banks and/or brokers for each transaction. The finance department maintains all investment transactions on a monthly summary of cash and investments. Annual reports on composition of the investment portfolio (type, financial institution, yield, purchase and maturity dates, and amount invested) will be also be prepared.