City Council Agenda and Packet 2015 09 21 BUDGET

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importance compared to the safety and liquidity objectives described above. Securities generally shall be held to maturity with the following exceptions: o A security with a declining credit may be sold early to minimize loss of principal. o A security swap would improve the quality, yield, or target duration of the portfolio. o Liquidity needs of the portfolio require the security to be sold. 6.2 Delegation of Authority. The Finance Director shall be the designated investment officer of the City and shall be responsible for all investment decisions and activities, under the direction of the City Manager. The Finance Director shall establish investment policy procedures for the operation of the investment program consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director. The Finance Director may delegate the authority to conduct investment transactions and manage the operation of the investment portfolio to one or more subordinates and /or an external registered investment advisor who shall act in accordance with established procedures on internal controls and in compliance with this investment policy. 6.4 Legal Investments. All investments shall be made in accordance with Colorado Revised Statutes (CRS) as follows: CRS 11- 10.5 -101, et seq., Public Deposit Protection Act; CRS 24 -75 -601, et seq., Funds - Legal Investments for Government Units; CRS 24 -75 -603, et seq., Depositories; CRS 24 -75 -701 and 702, et seq., Local Governments - Local Government Pooling and that the investment or deposit meets the standard established in section CRS 15 -1 -304. Any revisions or extensions of these sections of the CRS will be assumed to be part of this Investment Policy immediately upon enactment. To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the settlement date or in accordance with state and local statutes and ordinance. Pursuant to CRS Section 24 -75- 601.1(1), as amended from time to time, and subject to the limitations set forth therein, the securities listed herein shall be eligible for investment of public funds by the City. In the event of a conflict between CRS 24 -75- 601.1(1) and this policy, other than this policy being more restrictive that CRS 24 -75- 601(1), CRS 24 -75- 601.1(1) shall control. Nothing herein shall preclude the City from adopting a policy to permit securities other than those listed in CRS 24 -75- 601.1(1) for investment of public funds. CRS 24 -75- 601(1) and this policy authorize the following investments: • Any security issued by, fully guaranteed by, or for which the full credit of the United States Treasury is pledged for payment; allowing for inflation indexed securities. The period from the date of settlement of this type of security to the maturity date shall be no more than five years, unless the City Council authorizes investment for a period in excess of five years. • Any security issued by, fully guaranteed by, or for which the full credit of the following is pledged for payment: The Federal Farm Credit Bank, A Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, The Federal National Mortgage Association, the Government National Mortgage Association, or an entity or organization that is not 31