Financial Policy Handbook 2017

1. Safety: Safety and preservation of principal in the overall portfolio; 2. Liquidity: Maintaining the necessary liquidity to match expected liabilities; and 3. Return: Obtaining a reasonable return in compliance with Iowa Code Section 12C.6. SECTION 7 - PRUDENCE The Treasurer of the City of Spencer, when investing or depositing public funds, shall exercise the care, skill, prudence and diligence under the circumstances then prevailing that a person acting in a like capacity and familiar with such matters would use to attain the investment objectives (Section 6). This standard requires that when making investment decisions, the Treasurer shall consider the role that the investment or deposit plays within the portfolio of the asses of the City and the investment objectives stated in Section 6. When investing assets of the City of Spencer for a period of longer than six months or in an amount greater than $300,000 per investment, the Treasurer shall request competitive investment proposals for comparable credit and terms from a minimum of three investment providers. SECTION 8 - INSTRUMENTS ELIGIBLE FOR INVESTMENT Assets of the City of Spencer shall be invested in financial institutions properly declared by Resolution of the City Council of the City of Spencer. Deposits in any financial institution shall not exceed the amount stated in the Resolution. Assets of the City of Spencer may be invested in the following: 1. Demand Deposit Accounts (DDA), 2. Negotiable Orders of Withdrawal (NOW) Accounts, 3. Certificates of Deposit, or 4. Obligations of the United States Government, its agencies and instrumentalities. SECTION 9 - PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES Assets of the City of Spencer shall not be invested in the following: 1. Reverse repurchase agreements, or 2. Futures and options contracts