The following investment and deposit objectives shall be applied in the management of City funds:
(a) The primary objective of the City's investment activities shall be the preservation of capital and the protection of investment principal.
(b) The Finance Director shall strive to maximize the return on the portfolio, but shall avoid assuming unreasonable investment risks.
(c) The City's investment portfolio shall remain sufficiently liquid to enable the City to meet operating requirements, which might 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 individua1 financial institutions.
(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) A factor in determining which depository should hold the City's public funds shall be the City's desire to obtain the best possible banking services at the least possible cost.
(Ord. 2006-075. Passed 8-14-06.)