AgdaPkt 2016-06-27 Closed and Joint SA PFA

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CITY OF REDWOOD CITY INVESTMENT POLICY Last update: 6/22/2016 6 The City may invest in the San Mateo County Pool established by the San Mateo County Treasurer for the benefit of local agencies (as established in California Code Section 53684). The aggregate investment in such securities shall not exceed $50 million. E. State and Local Agency Bonds – Maximum 20% The City may invest in the bonds and notes issued by California state and local agencies with a rating of “AA” or better (or its equivalent). No more than 2% of the portfolio may be invested in a single issuer. The aggregate investment in such securities shall not exceed 20% of the City’s total portfolio. F. Money Market and Mutual Funds – Maximum 20% The City may invest in money market and mutual funds that are registered under the Investment Company Act of 1940 that (1) are “no-load” (no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this Policy; and (4) have a rating of at least AAA, or the equivalent, by at least 2 Nationally Recognized Statistical Rating Organizations (NRSRO). No more than 5% of the City’s total portfolio shall be invested in any one issuer and the aggregate investment in money market or mutual funds shall not exceed 20% of the City’s total portfolio. G. Medium-Term Notes Issued by US Corporations – Maximum of 20% The City may invest in medium term notes with up to 3 years to maturity and rated at least “A” or the equivalent, by an NRSRO. No more than 2% of the City’s portfolio may be invested in the medium-term notes of any one issuer or its affiliates. The aggregate investment in such securities shall not exceed 20% of the City’s total portfolio. H. Certificates of Deposit – Maximum of 10% The City may invest in certificates of deposit with a maturity not exceeding three years, in state or nationally chartered banks or savings banks that are insured by the FDIC, subject to the limitations of California Government Code Section 53638. Amounts in excess of FDIC insurance coverage shall be secured in accordance with California Government Code Section 53652. The City may use CD Placement Service for ease of administration to benefit from FDIC insured deposits without dealing with many banks. No more than 2% of the City’s portfolio may be invested in any one institution. The aggregate investment in such securities shall not exceed 10% of the City’s total portfolio. I. Prime Commercial Paper – Maximum of 10% The City may invest in prime commercial papers with a maturity not exceeding 270 days from the date of trade settlement with the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph 1 or sub-paragraph 2 below: 1. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated at least, A or the equivalent, by a NRSRO. 2. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program-wide credit enhancements, including, but 6.1.I. - Page 19