Page 563 - Bedford-FY24-25 Budget

business sector (where appropriate),

b. Limiting investment in securities that have higher credit risks,

c. Investing with varying maturities, and

d. Continuously investing a portion of the portfolio in readily available funds such as financial
institution deposits, local government investment pools, money market funds, or overnight
repurchase agreements to ensure that appropriate liquidity is maintained in order to meet
ongoing obligations.

e. The City will incorporate a diversified portfolio of investments. The City will use the
following asset allocations as a guide for approximate percentages of the total portfolio.
This guide allows for flexibility to take advantage of market conditions, without minimum
or maximum allowances placed on the City. The guideline is as follows:

% Guide
U.S. Treasury Bills and Notes 75
U.S. Agency or Instrumentality Obligations 75
Repurchase Agreements (excluding Bond Proceeds) 20
Municipal Securities 40
Certificates of Deposit 75
Money Market Mutual Fund ($1.000 Net Share Value) 40
Local Government Investment Pool (per pool) 40
Cash and Money Market Funds 35

2. Maximum Maturities. To the extent possible, Bedford shall attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow, Bedford will not directly
invest in instruments maturing more than three (3) years from the date of purchase or in accordance
with state and local statutes and ordinances. Bedford shall adopt weighted average maturity limitations
(which often range from 90 days to 3 years), consistent with the investment objectives.

Reserve funds and other funds with longer-term investment horizons may be invested in instruments
exceeding three (3) years if the maturity of such investments is made to coincide as nearly as
practicable with the expected use of funds. The intent to invest in instruments maturing greater than
three (3) years shall be disclosed in writing to the City Council.

Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the
portfolio should be continuously invested in readily available funds such as financial institution
deposits, investment pools, money market funds, or overnight repurchase agreements to ensure that
appropriate liquidity is maintained to meet ongoing obligations.

3. Competitive Environment. Bedford strives for a competitive environment on all individual
security purchases and sales, financial institution time deposit and transaction accounts, and money
market mutual fund and local government investment pool selections. The Director of Finance shall
develop and maintain procedures for ensuring a competitive environment in the investment of City
funds.

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