§ 30-01-030. Policy declarations.

(a)

It is the intent of this policy to establish the authority and procedures for the investment of the city's funds in an effort to:

(1)

Maximize investment returns while minimizing risk;

(2)

Maintain a level of liquidity to ensure that unanticipated cash needs are met;

(3)

Allow for diversification of the city's portfolio;

(4)

Recognize the impact of the city's investment program on the local economy.

(b)

The criteria for selecting investments shall be, in the following order of priority:

(1)

Safety;

(2)

Liquidity;

(3)

Yield.

(c)

The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule, which is: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." The prudent investor rule shall be applied in the context of managing the overall portfolio.

(d)

The investment officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for specific security's credit risk or market price changes, provided that these deviations are reported immediately to the investment committee and that appropriate action is taken to control adverse developments.

(Ord. No. 722, 10-13-87)