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<br />e <br /> <br />e <br /> <br />7. To be eligible to receive funds from and invest funds on behalf of an entity under this <br />chapter, a public funds investment pool must have an advisory board composed: <br /> <br />a) equally of participants in the pool and other persons who do not have a business <br />relationship with the pool and are qualified to advise the pool, for a public funds <br />investment pool created under Chapter 791 and managed by a state agency; or <br /> <br />b) of participants in the pool and other persons who do not have a business relationship <br />with the pool and are qualified to advise the pool, for other investment pools. <br /> <br />8. To maintain eligibility to receive funds from and invest funds on behalf of an entity under <br />this chapter, an investment pool must be continuously rated no lower that AAA or AAA- <br />m or at an equivalent rating by at least one nationally recognized rating service. <br /> <br />EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of <br />this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be <br />liquidated because of material adverse change in the value since the time of purchase, and holding <br />the investment to maturity does not negatively affect disbursements or cash flow, a <br />recommendation of holding said investment to maturity is acceptable. <br /> <br />PROCUREMENT Investments of subsections A-G of this section, eKeh:lsiBg Bew issyes, may be <br />made only after competitive bids are solicited from at least three sources, with the exception of a) <br />transactions with money market mutual funds and local government investment pools, and b) <br />treasury and agency securities purchased at issue through an approved broker/dealer or financial <br />institution. <br /> <br />MONITORlNG The market value of each investment shall be obtained monthly from a source <br />such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service <br />and reported on the monthly investment reports. <br /> <br />LENGTH Of INVESTMENTS The maximum stated maturity, from the date of purchase, for <br />any individual investment may not exceed 5 years and the maximum dollar-weighted average <br />maturity for the pooled fund group (investment portfolio) may not exceed 2 years. <br /> <br />DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment portfolios. <br />Assets held in the common investment portfolio shall be diversified to eliminate the risk of loss <br />resulting from one concentration of assets in a specific maturity, a specific issuer or a specific <br />class of securities. Diversification strategies shall be determined and revised periodically by the <br />AtHIH fiscal Affairs Committee. <br /> <br />In establishing specific diversification strategies, the following general policies and constraints <br />shall apply: <br /> <br />A. Portfolio maturities shall be staggered in a way that protects interest income from the <br />volatility of interest rates and that avoids undue concentration of assets in a specific maturity <br />sector. Securities shall be selected which provide for stability of income and reasonable <br />liquidity. The City shall continually invest a portion of the portfolio in readily available <br />funds such as local government investment pools (LGIPs), money market funds or overnight <br />repurchase agreements to ensure that appropriate liquidity is maintained in order to meet <br />ongoing obligations. <br /> <br />10 <br />