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I. Scope <br />The investment policy shall apply to funds under the control of the City of Casselberry, Florida <br />("City") in excess of those required to meet current expenses. The policy applies to all financial <br />assets of the City of Casselberry under the control of the finance director except as noted below. <br />This investment policy shall not apply to pension funds, including those funds in Florida Statutes <br />chapters 175 and 185. Nor shall this investment policy apply to funds related to the issuance of <br />debt where there are other existing policies or indentures in effect for such funds. The Finance <br />Director or duly authorized personnel will consolidate, where practicable and allowable, for the <br />purposes of investment, cash balances and investments from all funds covered by this policy to <br />maximize investment earnings and reduce risks. The investment of funds shall comply with all <br />controlling state statutes, ordinances and covenants covering the City's investments. <br />II. General Objectives <br />The primary objectives, in priority order, of investment activities shall be safety, liquidity, yield, <br />and transparency: <br />1. Safety - The primary objective shall be the preservation of capital and the <br />protection of principal. Investments shall be undertaken in a manner that seeks the <br />preservation of capital in the overall portfolio. The objective will be to limit credit risk <br />and interest rate risk to a level commensurate with the risks associated with prudent <br />investment practices and performance benchmarks, if applicable. <br />2. Risks — The city recognizes that investment risks can result from issuers defaults, <br />market price changes or various technical complications leading to temporary liquidity. <br />Portfolio diversification is employed as a way to control risk. Investment managers are <br />expected to display prudence in the selection of securities, as a way to minimize default <br />risk. No individual investment transaction shall be undertaken which jeopardizes the total <br />capital position of the overall portfolio. In the event of a default by a specific issuer, the <br />investment manager shall review, and if appropriate, proceed to liquidate securities <br />having comparable credit risks. To control market price risks, volatile investment <br />instruments shall be avoided. <br />3. LiquiditX — The City's investment portfolio will be operated in such a manner as <br />to ensure the City is able to meet operating requirements which might be reasonably <br />expected. This is accomplished by structuring the portfolio so that securities mature to <br />meet anticipated demands (static liquidity). Furthermore, since all possible cash demands <br />cannot be anticipated, the portfolio should consist largely of securities with active <br />secondary or resale markets (dynamic liquidity). The portfolio may be placed in local <br />government investment pools or money market mutual funds that offer same-day <br />liquidity for short-term funds. <br />4. Investment Income - The investment portfolio shall be designed with the <br />objective of attaining a market rate of return, as measured by specified benchmarks, <br />throughout budgetary and economic cycles, taking into account the investment risk <br />2 <br />