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MAXIMUM MATURITIES The maximum stated maturity, from the date of purchase, for any <br />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 /> DIVERSIFICATION It is the policy of the City to diversify its investment portfolios. Assets <br />held in the pooled investment portfolio shall be diversified to eliminate the risk of loss resulting <br />from over-concentration of assets in a specific maturity, specific issuer or specific class of <br />securities. Diversification strategies shall be determined and revised periodically by the Fiscal <br />Affairs Committee. <br />FINANCIAL INSTRUMENTS Maximum allowable percentages of the total portfolio for <br />investments are stated as follows: <br /> Investment Type Maximum Limit <br />1. Investment Pools 100% <br />2. Money Market Accounts 10% <br />3. Certificates of Deposit 60% <br />4. U.S. Government Securities 80% <br />5. U.S. Agency Securities 80% <br />VII. SELECTION OF FINANCIAL INSTITUTIONS AND BROKER DEALERS <br /> SELECTION OF FINANCIAL INSTITUTIONS Depositories shall be selected through the City's <br />banking services procurement process, which shall include a formal request for proposal (RFP) <br />issued every five (5) years. In selecting depositories, the services available, service costs, and <br />credit worthiness of institutions shall be considered, and the Director of Finance shall conduct a <br />comprehensive review of prospective depositories’ credit characteristics and financial history. <br />The depository contract will provide for collateral if balance exceeds FDIC Insurance amounts. <br /> The City shall select financial institutions from which the City may purchase certificates of <br />deposit in accordance with the Act and this policy and will have a written depository agreement <br />with the selected institution, which was approved by resolution of the Bank’s Board if collateral <br />is required. The Investment Officer shall monitor the fiscal condition of financial institutions <br />where certificates of deposit are held. <br />AUTHORIZED FINANCIAL BROKER/DEALERS AND INSTITUTIONS The Investment <br />Officer shall maintain a list of broker/dealers and financial institutions authorized to provide <br />investment services. These may include primary dealers or regional dealers that qualify under <br />Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). All financial <br />institutions and broker/dealers who desire to become qualified bidders for investment transactions <br />must submit: audited financial statements, proof of National Association of Security Dealers <br />certification, and proof of state registration. <br />Before engaging in investment transactions with a financial institutions or broker/dealers, the <br />Investment Officer shall have received, from a Qualified Representative of said firm, a signed <br />Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's <br />account with that firm has (1) received and reviewed the investment policy of the City; and (2) <br />acknowledged that the business organization has implemented reasonable procedures and controls <br />in an effort to preclude investment transactions conducted between the City and the organization <br />that are not authorized by the City’s investment policy, except to the extent that this <br />6 <br /> <br />