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6.18 Investment Policy Page 4 June 2006 Page 3 of 6 VII. AMOUNTS TO BE INVESTED The City will invest all funds and estimated checking account float except for those amounts required by the City banks to pay for bank services furnished to the City. VIII. GUIDELINES BY TYPE OF INVESTMENT A. CERTIFICATES OF DEPOSIT: Cash will be invested only in FDIC insured or fully collateralized certificates of deposit. Collateral for a given investment must be 110% of principal for government securities collateral and 150% of principal for first mortgage collateral. No more than 7.5% of the City portfolio, not to exceed $3 Million shall be invested in anyone institution. An institution must meet the following criteria to be considered by the City: For investments greater than $100,000, the institution must maintain $100 Million in assets. For investments greater than $300,000, the institution must maintain at least $300 Million in assets. The City will not invest in any institution less than five years old. The institution must maintain a net worth to asset ration of at least 3% and a positive earnings records for the immediate past three years. The institution must have on file with the City a current FDIC call report (banks) or FHLB report. The institution must be located in California. The institution must have a jumbo certificate to total assets ratio of less than 50%. The above requirements will be waived whenever the total amount on deposit with any institution does not exceed $100,000; providing, that the institution is insured by the Federal Deposit Insurance Corporation (FDIC). B. BANKERS ACCEPTANCES: The City will only invest through the 15 largest banks in the United States or the 100 largest banks in the world (in terms of assets). The maximum investment with anyone institution will not exceed $3 Million (with a maximum maturity of 180 days). C. TREASURY BilLS, NOTES, AND BONDS: The City will require safekeeping documentation of the treasury instrument in an acceptable safekeeping account in the City's name. The maximum maturity on a treasury instrument will be three years. -r--..-- --- ~ .