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CITY OF PEQUOT LAKES <br /> INVESTMENT POLICY <br /> Adopted: 12-3-07 <br /> Amended: 1-6-15 <br /> SECTION 1. PURPOSE <br /> The purpose of this policy is to establish investment objectives and specific guidelines that the <br /> City of Pequot Lakes will use in the investment of City funds. It will be the responsibility of the <br /> City Clerk to invest city funds in order to attain a market rate of return while preserving and <br /> protecting the capital of the overall portfolio. Investments will be made, based on statutory <br /> constraints, in safe, low risk instruments. <br /> SECTION 2. SCOPE <br /> These investment and portfolio procedures apply to the activities of the City with regard to <br /> investing the financial assets of all funds, including the following. <br /> • General Fund <br /> • Special Revenue Funds <br /> • Capital Project Funds <br /> • Enterprise Funds <br /> • Debt Service Funds <br /> SECTION 3. INVESTMENT OBJECTIVES <br /> Funds of the City will be invested in accordance with Minnesota Statute 118A and this <br /> investment policy. Investments shall be made based on statutory and policy constraints including <br /> the following. <br /> A. Safety of principal. Safety of the principal is the foremost objective of the City. Each <br /> investment transaction shall insure that capital losses are avoided. <br /> B. Liquidity. The investment portfolio must remain sufficiently liquid to meet all operating <br /> costs that may be reasonably anticipated. Cash needs will be determined based on cash <br /> flow forecasts prepared during the budget process. <br /> C. Yield. The investment portfolio shall be designed to manage the funds to maximize <br /> returns. The City will limit each investment to no more than 5%of the total investment <br /> amount. <br /> SECTION 4. DELEGATION OF AUTHORITY <br /> The City Clerk is designated as investment officer of the City and is responsible for investment <br /> decisions and activities. The Mayor and the City Clerk are authorized to sign bank documents for <br /> the City. The City Clerk or the Deputy City Clerk are authorized to transfer funds electronically <br /> or by telephone between the City's investment accounts and bank accounts at amounts not to <br /> exceed $500,000. <br /> - 16 - <br />