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

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I I I I I I I City of RamseY Investment PolicY EXHIBIT 1 Minnesota Statutes 385.07 requires that "All county funds shall be deposited promptly and intact by the county treasurer in the name of the county or invested as provided in sections 471.56 and 475.66." MS 471.56 states: "Any municipal funds, not presently needed for other purposes, may be depositod or invested in the manner ..... provided in section 475.66 for the deposit and investment of debt Service funds." The statutes that now authorize specific investment instruments are: MS 475.66 S/ab& 1. Ail debt service funds shall be deposited and secured as provided in chapter 1~18, except for amounts invested as authorized in this section, and may be deposite~ in interest-bearing accounts, and such deposits may be evidenced by certificates of deposit with fixed maturities. Sufficient cash for payment of principal, interest, and redemption premiums when due with respect to the obligations for which any debt service fund is cleated shall be provided by crediting to the fund the collections of tax, special assessment, or other revenues appropriated for that purpose, and depositing all such receipts ir/a depository bank or banks duly qualified according to law or reinvesting such receipts in securities authorized in this section. Time deposits shall be withdrawable and certificates of deposit and investments shall mature and shall bear interest payable at times and in amgunts which, in the judgment of the governing body or its treasurer o other officer or committee to which it has delegated investment decisions, will provide cash at the times ~nd in the amounts required for the purposes of the debt service fund, provided however, that the governing body may authorize the purchase of longer term investments subject to ran agreement to repurchase such investments at times and prices sufficient to yield the amounts estimated to be so required, provided that the exclusion as investments of mortgage-backed securities that are defined as high risk under subdivision 5 does not apply to repurchase agreements if the margin requirement under the repurchase agreement is 101 percent. Repurchase agreements may be entered into with (1) a bank qualified as depository of money held in the debt service fund; (2) a~ny national or state bank in the United States which is a member of the federal reserve system and whose combined capital and surplus equals or exceeds $10,000,000; (3) a primary reporting dealer in United States government securities to the federal reserve bank of New York; or (zl) a securities broker-dealer having its principal executive office in Minnesota, licensed pursuant to chapter 80A, or an affiliate of it, regulated by the securities and exchange commission and maintaining a combined capital and surplus of $40,000,000 or more, exclusive of subordinated debt. Subd. 2. Investments may be held in safekeeping with (1) arty federal reserve bank; (2) any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including but not limited to the bank from which the investment is purchased; 6