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r 333 I 1.0 DMRSIFICATION The City of Paris will diversify its investments by security type and institution. With the exception of obligations of the United States or its agencies and authorized pools, no more than 50% of the City of Paris total investment portfolio will be invested in a single financial institution with the exception of its local depository. 12.0 MAMMUM MATURITIES To the extent possible, the City of Paris will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City of Paris will not directly invest in securities maturing more than 10 years from the date of purchase. However, the City of Paris may collateralize its repurchase agreements using longer -dated investments not to exceed 15 years to maturity. Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments are made to coincide as nearly as practicable with the•expected use of the funds. 13.0 INTERNAL CONTROL The Finance Director shall establish an annual process of independent review by an external auditor. This. review will provide internal control by assuring compliance with policies and procedures. . 14.0 PERFORMANCE STANDARDS The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. 14.1 MARKET YIELD (BENCHMARK): The City of Paris investment strategy is active. Given this strategy, the basis used by the Finance Director to determine whether market yields, are being achieved shall be the six-month U.S. Treasury Bill and the Average Fed Funds rate. 15.0 REPORTING The Finance Director is charged with the responsibility of including a market report on investment activity and.returns in the •City of Paris' Financial Report. Reports must include all information required by Section 2256.023 of the statute. 16.0 The market price of acquired investments shall be monitored by using information found in the Wall' Street Journal and/or through Bloomberg Information Services, and/or through a securities dealer's trading '.' desk: 17.0 INVESTMENT POLICY ADOPTION The City of Paris investment policy shall be adopted by resolution of the City Council. The'policy shall be reviewed and rc- adopted annually by the City Council and any modifications made thereto must be approved. by the City Council.