Ordinance 2513-01 - Laserfiche WebLink

In the interest of preserving the portfolio's capital, the City will not exceed the following maximum percentages of investment per institution: Maximum Investment Type Portfolio Percentage Per ... . ,. . .. Institution US Government Agency Obligations 70% Other Government Obligations 10% Repurchase Agreements 10% Banker's Acceptance 10% Certificates of Deposit 10% Savin•s or Time De•osit 10% There is no restriction on the City's percentage of investment in Treasuries or the State Investment Pool. Maturities of investments will be selected based on the City's liquidity requirements and market conditions to minimize interest rate risk and maximize earnings. For this purpose, the City's portfolio will target the following structure: • Seation Description . Portfolio Target Percentage tage .�� Short-Term A ladder consisting of non-callable investments with 10% - 30% a maximum maturi of no more than 2 ears Mid-Term A mix of callable and non-callable investments with 45% - 75% a maximum maturi of no more than 5 ears. Long-Term A mix of callable and non-callable investments with 5% - 2000 a maximum average maturity of no more than 10 ears. The portfolio structure will be evaluated regularly and rebalanced according to the City's cash flow needs and market conditions. 9.0 Collateral Requirements Collateral is required for investments in repurchase agreements. In order to reduce market risk, the collateral level will be at least 102% of market value of principal and accrued interest. The City chooses to limit collateral to the obligations of the United States Government and its agencies. Collateral will be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping 03/20/01 9:07 AM 5