55A - ADOPT RESO FOR ANNUAL STATEMENT AND RECIEVE AND FILE

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C. A questionnaire developed by FMSA investment staff and approved by the Treasury and Customer Services Manager or Assistant Director of Finance shall address the following general topics: i. A description of eligible investment securities, and a written statement of investment policy and objectives. ii. A description of interest calculations and how it is distributed, and how gains and losses are treated. iii. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. iv. A description of who may invest in the program, how often, what size minimum and maximum deposit and withdrawal are allowed. v. A schedule for receiving statements and portfolio listings. vi. A description of how reserves, retained earnings, etc. are utilized by the pool. vii. A model of the fee schedule, and when and how it is assessed. viii. A description of eligibility and/or acceptance of bond proceeds. ix. The pool must contain only the types of investment allowed by California Code. Upon approval for participation in one or more additional investment pools the FMSA investment staff shall thereafter on a regular and continuing basis investigate and reconfirm the pool's compliance with items listed above and shall monitor the pool's performance reports. 11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS Money must be deposited in state or national banks, state or federal savings associations or state or federal credit unions in the State of California. It may be in inactive deposits, active deposits or interest -bearing active deposits. The deposits cannot exceed the amount of the bank's or savings and loan's paid up capital and surplus. The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of one -hundred, ten percent (110%) of the total amount of the deposits. State law also allows as an eligible security, first trust deeds having a value of one -hundred, fifty percent (150%) of the total amount of the deposits. A third class of collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB). The Treasurer may waive, at his discretion, security for that portion of a deposit which is insured pursuant to federal law. Currently, the first two -hundred, fifty -thousand dollars ($250,000) of a deposit is federally insured. It is to the City's advantage to waive this collateral requirement for the first $250,000 because we receive a higher interest rate. City of Santa - Annual page 16 July 1, 2020 - Statement of Investment Policy June 30, 2021 55A-22