Effective forecasting of cash requirements and cash management allows investment of available cash resources for the City. Such resulted in earnings of $25,500,124 during 2005-2006. This utilization of resources results in reduced current property tax requirements and supplemented capital project resources and aids in reduced debt levels, minimizing short-term and long-term borrowing costs.
The investment policy of the City is guided in large part by State Statute G. S. 159-30, whereby investments in certificates of deposit, repurchase agreements, secured time deposits, bankers' acceptances, commercial paper, United States government and agency securities and the North Carolina Capital Management Trust are made.
The City's policy stipulates that investments be fully secured by pledged collateral, delivered securities or United States government guarantee with all securities, including repurchase agreements and pledged collateral, being delivered to a third party safekeeping account in the name of the City.
