The achievement of good fiscal management for the City requires effective cash management of public money and, in turn, effective bank management practices with respect to the deposit and investment of public money. The following investment objectives shall be applied in the management of public money:
(a) The primary objective of the City's investment activities is the preservation of capital and the protection of investment principal.
(b) Those responsible for investing public money shall strive to maximize the return on the investments but shall avoid assuming unreasonable investment risks.
(c) The City's investments shall remain sufficiently liquid to enable the City to meet operating requirements that may reasonably be anticipated.
(d) The City's investments shall be diversified to avoid the assumption of unreasonable and avoidable risks associated with specific types of securities or individual financial institutions.
(e) Investments shall be made with the exercise of that degree of judgment and care under circumstances 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.
(Ord. 32-98. Passed 4-6-98.)