A. Government obligations;

B. Commercial paper (i) having original maturities of not more than 270 days and rated, at all times, “A-1” or better by S&P, and “P-1” or better by Moody’s; and (ii) bearing interest at a rate at least 25 basis points (0.25 percent) above the rate of interest on United States Treasury obligations of the same maturity at the time of purchase;

C. Banker’s acceptances accepted by a rated bank and eligible for rediscount with, or purchase by, Federal Reserve System banks;

D. Interest-bearing obligations of a corporation, or of any state of the United States of America or any political subdivision thereof, which obligations at all times are rated at least “AA” by S&P or Moody’s; provided, that any such obligation of a corporation shall bear interest at a rate at least 25 basis points (0.25 percent) above the rate of interest on United States Treasury obligations of the same maturity at the time of purchase;

E. Shares of Securities and Exchange Commission registered money market mutual funds conforming to Rule 2a-7 of the Investment Company Act of 1940 that invest primarily in direct obligations of the United States and repurchase agreements backed by those obligations, and rated in the highest category by S&P and Moody’s;

F. Certificates of deposit of any rated bank; provided, that such certificates of deposit are (i) fully insured by the appropriate insuring agency of the United States; and (ii) to the extent not so insured, collateralized with government obligations held by a third party custodian, in an amount equal to 102 percent of the principal and unpaid accrued interest;

G. Repurchase agreements with primary dealers or rated banks, collateralized with government obligations held by a third party custodian, in an amount equal to 102 percent of the principal and unpaid accrued interest;

H. In addition to the above, the city may invest its funds pursuant to an investment agreement with an investment pool organized and operated in accordance with the Alaska Investment Pool Act (Alaska Statute Chapter 37.23, Investment Pools for Public Entities). (Ord. 585 § 4, 2002)