(A) Diversification. The investments shall be diversified by:
(1) Limiting investments to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities);
(2) Limiting investment in securities that have higher credit risks;
(3) Investing in securities with varying maturities; and
(4) Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.
(B) Maximum maturities.
(1) To the extent possible, the city shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the city will not directly invest in securities maturing more than five years from the date of purchase or in accordance with state and local statutes and ordinances. The city shall adopt weighted average maturity limitations (which often range from 90 days to three years), consistent with the investment objectives.
(2) Reserve funds and other funds with longer-term investment horizons may be invested in securities exceeding five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of funds. The intent to invest in securities with longer maturities shall be disclosed in writing to the City Council.
(Ord. 02-2010, passed 6-8-2010)