Agenda - Council - 10/22/1996 - Laserfiche WebLink

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City of Ramsey Investment Policy The investment portfolio of the City of Ramsey shall be designed to attain market-average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraint and the cash flow characteristics of'the portfolio, All participating in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City of Ramsey's ability to govern effectively. A. Procedures Cash management is essential to a good investment program. The Finance Department has responsibility to organize and establish procedures for effective cash management. 1. Cash flow projections are prepared at the beginning of each budget year. Each morning cash balances are prepared based on cash received the previous day, payments made the previous day, and sizable checks or wire transfers that present investment opportunity. Each morning the investment records are reviewed and updated as investments mature or are purchased. 4. Each month the investment records are balanced to the financial records. Each month the Finance Officer shall submit a report of the City's investments and cash position to the City Council. Interest earnings will be allocated to the various City funds, at least annually, based on average cash balances. B. Banking and Depositories Investment procedures include controlling the level of bank balances and selecting depository institutions. Except for investment instruments, all City funds are centralized in one bank account. 1, At the beginning of each year, the City Council approves official depositories and investment firms. Minnesota Statues 118.005 and 118.01 requires that all deposits be collateralized in the amount of 110% of deposits in excess of Federal Government insurance coverage. [Exhibit 2] I I I I I I I I I I I I I I I I I I I