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Fiscal Policies circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." The prudent person rule shall be applied in the context of managing the overall portfolio. Eligible Depositories — In selecting depositories, the credit worthiness of the institution will be considered, including at least credit characteristics and financial history. Depositories must be headquartered within the state of Colorado, with preference given to Louisville financial institutions, and must conform to all other requirements of C.R.S. 11-10.5 (The Public Protection Act). Eligible Securities Brokers / Dealers — For brokers and dealers of government securities, the City shall select only security dealers that are registered with NASD (National Association of Securities Dealers). Eligible Investments — Eligible investments shall conform to state law and will include any of the following: 1. U.S. Treasury Bills 2. U.S. Treasury Notes 3. Any Federal agency securities (short-term bonds and discount notes), which the investment officer clearly understands and is competent to handle. 4. Fully insured or collateralized certificates of deposits. 5. Repurchase agreements in securities listed in (1), (2) or (3) above with the following conditions: a) Written agreement. b) The securities must be marketable. c) Market value of such securities must be at all times at least equal to the funds invested. d) Title to or perfected security interest in securities must be transferred to the City or a custodian selected by the Director of Finance. e) Securities must be actually delivered to the City or a custodian selected by the Director of Finance. Custody by a third party on behalf of the City, or 12 in a custodial account with a bank selected by the Director of Finance. The maximum maturity date for all securities above is no more than 5 years from the date of purchase unless otherwise authorized by the City Council. Diversification — The City will diversify use of investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures (payroll, bond payments) as well as considering sizable blocks of anticipated revenue (sales tax, property taxes). Investments of capital project funds shall be timed to meet contractor payments. Competitive Quotes — The City will seek competitive quotes on all investments. Investments will be made on the basis of the legality, safety, liquidity and yield of invested money with regard for the characteristics of the investments, the quotes and the quoting institutions. Documentation — All purchase and sales of investments shall be authorized or confirmed in writing with the issuer. Internal controls will be established to ensure the integrity of the investment process. For investment transactions, which are, conducted electronically, confirmation in the form of annotated documentation and confirmation received will be retained. Reporting Requirements — The investment officer shall generate daily and monthly reports for management purposes. The report shall summarize the investment securities, maturities, and any other features necessary for clarification. Accounting Policies 41. The City will establish and maintain a high degree of accounting practice. Accounting