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<br />Investment Policy <br />June 200GMav 2008 <br />Page 5 of 7 <br /> <br />6.18 <br />Page 6 <br /> <br />I. MONEY MARKET FUNDS: <br /> <br />Not more than 10% of the portfolio may be invested in money market funds. Funds <br />must comply with the investment restrictions of the California Government Code Section <br />53630 et seq., and be issued by diversified management companies or mutual funds. <br />They shall be rated in the highest rating category of at least two of the three nationally <br />recognized rating services (e.g., Moody's P-1 or S&P AAAm), and must have in excess <br />of $500,000,000 in assets under management. <br /> <br />J. CORPORATE NOTES <br /> <br />Not more than 30% of the portfolio may be invested in Corporate Notes. Corporate <br />Notes must be rated "A" or better by Moody's or Standard and Poor's rating services at <br />the time of purchase. No more than $5 million may be invested in any single issuer. <br /> <br />IX. MATURITY OF INVESTMENTS <br /> <br />With the exception of Treasury Notes, Treasury Bonds, Corporate Notes, and Agencies, the <br />maturity of a given investment will not exceed one year. Treasury Notes, Treasury Bonds, <br />Corporate Notes, and Agencies may be purchased for a period not to exceed three years. <br /> <br />Approximately 50% of idle funds will be placed in investments that can be sold for face value in <br />the open market in the event of an emergency. <br /> <br />Not more than 50% shall be invested for more than one year and not more than 25% of the <br />portfolio for more than two years. <br /> <br />X. USE OF SECURITIES DEALERS AND BROKERS <br /> <br />The City will utilize the services of brokers and security dealers only if the firm is recognized as <br />a primary dealer by the Federal Government. No public deposit shall be made except in a <br />state qualified depository. <br /> <br />The City shall work directly with banks when purchasing certificates of deposit and not utilize <br />the services of brokers for this purpose. <br /> <br />XI. FINANCE COMMITTEE AUTHORITY AND REPORTS TO COUNCIL <br /> <br />An investment committee consisting of the Finance Director and staff members of the Finance <br />Department will meet regularly to review the City investment portfOlio daily cash reports and <br />anticipated cash requirements in selecting investment instruments for idle City funds. <br /> <br />The City Council Finance Committee will meet as needed (at least once a year) to insure that <br />City investments are consistent with the adopted policy and to consider changes in the policy if <br />deemed necessary. <br />