10-2145 Revised City Investment Policy

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throughout budgetary and economic cycles, taking into account the investment risk constraints anal liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core investments ate limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: A. A. security with declining credit play be sold early to minimize loss of principal. B. A security swap that would improve the quality, yield, or target duration in the portfolio. C. Liquidity Heads of the portfolio require that the security be sold. 4. Transuarency -- The City shall operate its portfolio in a transparent manner, making its periodic reports both available fat' public inspection and designed in a manner which communicates clearly and fully information about the portfolio, including mat•ket pricing, adjusted book value, yields, and CUSIPs of various securities. III, Staiaclar•cis of Cai•e 1. Pradence -The standard of prudence to be used by investment officials shall be the Prudent Person Rule and shall be applied in the context of managing an overall portfolio. City personnel, acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the City Manager in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. T'he City Manager has the discretion to report any material events to the City Commission. The Prudent Person Rule states that: "Investments~should 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, conside~•ing the probable safety of their capital as well as the probable income to be derived from the investment." 2. Ethics and Conflicts of Interest -The Finance Director and other authorized persomiel shall refrain from personal business activity that could conflict with the propel execution and managemen of the investment program, or that could impair their ability to make impartial decisions. These investment officials shall disclose to the City Manager annually, in a written statement, any material interests in financial institurions with which they conduct business with the City. They shall further disclose any personal financial/investment positions that could be related to the performance of the City's investment portfolio. They shall refrain from undertaking personal investment transactions with the same individual(s) with whom business is conducted on behalf of the City.