2017/03/29 Council Agenda Packet

j. i - be collateralized at a minimum of 102%of market value of principal and interest. Collateral will consist of direct obligations of the U.S.Treasury, U.S. Government Agency, and/or U.S. Government Security. All securities shall be held in third party safekeeping. • Bonds of the state of Washington or any local government in the State of Washington which have, at the time of investment, one of the three highest credit ratings of a nationally recognized rating agency. • The Washington State Local Government Investment Pool (LGIP). • Commercial Paper and Corporate Notes purchased in the secondary market and having received the highest rating by at least two Nationally Recognized Statistical Rating Organizations(NRSROs)at the time of purchase and adhering to the investment policies and procedures adopted by the State Investment Board. 9.0 Safekeeping 9.1 Delivery vs. Payment: All trades of marketable securities will be executed by delivery vs. payment(DVP) to ensure that securities are deposited with a third party custodian prior to the release of funds. 9.2 Safekeeping: Securities will be held by an independent third-party custodian selected by the Treasurer. Safekeeping receipts will evidence all transactions. 9.3 CD's: Certificates of deposit will be held by the Treasurer. 10.0 Diversification The City will diversify its investments by security type and institution. The following schedule provides the maximum holdings in any one type of investment or with any one issuer. Issuer Type Maximum Holdings Maximum Holdings - Portfolio Issuer U.S.Treasury Notes, Bonds or 100% N/A Certificates Government Sponsored 90% 40% Enterprises 10% Investment Deposits 20% -_ Certificates of Deposit 20% -- - --- Bankers Acceptances_ 20% 5% Repurchase Agreements _ ----- - -- - -- --- Washington State.Bonds Local Government Bonds 20% 5% - - — N/A _ LGIP 100% Commercial Paper II City of Everett Investment Policy(2017) -