Page 422 - FY 2026-2027 Adopted Budget Book

a. Limiting investments to avoid over concentration in securities from a specific
issuer or

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 overni ght repurchase
agreements to ensure that appropriate liquidity is maintained to meet ongoing
obligations.
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