The achievement of good fiscal management for the Municipality requires effective cash management of public moneys, and in turn, effective bank management practices with respect to the investment and deposit of these public moneys. The following investment and deposit objectives shall be applied in the management of public moneys:
(a) The primary objective of the Municipality's investment activities is the preservation of capital and the protection of investment principal.
(b) Those responsible for investing public moneys shall strive to maximize the return on the investments but shall avoid assuming unreasonable investment risks.
(c) The Municipality's investments shall remain sufficiently liquid to enable the Municipality to meet operating requirements that might reasonably be anticipated.
(d) The Municipality's investments shall be diversified to avoid the assumption of unreasonable and avoidable risks associated with specific types of securities or individual financial institutions. To the extent practicable, of the public moneys, no more than fifty percent (50%) shall be invested in repurchase agreements, nor more than fifty percent (50%) with any one eligible depository.
(e) Investments shall be made with the exercise of that degree of 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.
(f) Price and rate quotations for all investments may be obtained from eligible depositories designated pursuant to Section 125.02 within the Municipality or the County; provided, however, in the case of the sale or purchase of investments where all other factors considered by the Director of Finance are equal, placement shall be made with the designated eligible depository situated within the Municipality. The right is reserved to reject all bids or proposals or any bid if such is inconsistent with the Municipality's investment objectives.
(Ord.1986-46. Passed 10-28-86.)