(A) The City of Hurstbourne recognizes that some level of risk is inherent in any investment transaction. Losses may be incurred due to market price changes or closing investments prior to maturity due to unanticipated cash flow needs. Diversification of the City of Hurstbourne investment portfolio by type of investment instrument and term to maturity is the primary method to minimize investment risk.
(B) To the extent possible, the City of Hurstbourne will attempt to match its investments with anticipated cash flow requirements. Reserve funds may be invested in securities exceeding one year, if maturities of the investments are made to coincide as nearly as practical with the expected use of the funds.
(Ord. 12-06, passed 9-25-12)