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I, Scope <br />The investment policy shall apply to fiends under the control of the City of Casselberry, <br />Florida ("City") in excess of those required to meet current expenses. This investment <br />policy shall not apply to pension funds, including those finds in Florida Statutes chapters <br />175 and 185. Nor° shall this investment policy apply to filztds related to the issuance of <br />debt where there are other existing policies or indentures in effect for such funds, <br />however, absent such other cozatz'alling documents this policy shall apply to such funds. <br />The Finance Director or duly authorized personnel will consolidate, where practicable <br />and allowable, for the purposes of investment, cash balances and investments from alI <br />funds covered by this policy to maximize investment earnings and reduce risks. The <br />investmen of funds shall comply with all controlling state statutes, ardmances and <br />covenants covering the City's investments. <br />II, Gener'alObjectives <br />The primary objectives, in priority order, of investment activities shall be safety, <br />liquidity, and yield: <br />1. Safety -Safety of principal is the foremost objective of the investment <br />program. Investments shall be undertaken in a manner that seeks the preservation <br />of capital in the overall portfolio, The objective will be to limit credit risk and <br />interest rate risk to a level coutrnensurate with the risks associated with prudent <br />investment practices and performance benchmarks, if applicable. <br />A. Credit Risk -The City will limit credit risk, the risk of loss due to <br />the failure of the security issuer oz• backer, by diversifying the investment <br />portfolio so that potential lasses on individual securities will be minimized <br />and by limiting investments to specified credit ratings. <br />B. Interest Rate Risk -The City will minimize the risk that the market <br />value of securities in the portfolio will fall due to changes in general <br />interest rates by limiting the maximum duration of the overall portfolio to <br />5 years. <br />2. Liquidity -The investment portfolio shall rezuain sufficiently liquid to <br />meet all operating requirements that may be reasonably anticipated. This is <br />accomplished by structuring the portfolio so that securities mature to meet <br />anticipated demands (static liquidity). Furthermore, since a1I possible cash <br />demands cannot be anticipated, the portfolio should consist largely of securities <br />with active secondary or resale markets (dynamic liquidity). The portfolio may <br />be placed in Iocal govez'nment investment pools oz' rnozzey market mutual funds <br />that offer same-day liquidity for short-term funds. <br />3. Yield -The investment portfolio shall be designed with the objective of <br />attaining a market rate of z'etuz'n, as measured by specified benchmarks, <br />2 <br />