(A) It is the policy of the City of Lyndon to invest public funds in a manner which will provide the maximum security and highest investment of principal while meeting the daily cash flow demands on the City of Lyndon and conforming to both KRS 91A.060 and KRS 66.480. This investment policy applies to all financial assets held directly by the City of Lyndon. These financial assets are accounted for in the City of Lyndon annual financial report and include all monies in investment fund accounts.
(B) This investment policy applies to all financial assets held directly by the city. These financial assets are accounted for in the city's annual financial report and include all monies in the following funds:
(1) General Fund;
(2) Special Revenue Fund;
(3) Capital Projects Fund;
(4) Enterprise Fund;
(5) Utility Depreciation Fund;
(6) Agency Fund; and
(7) Any new fund created by the governing body.
(C) The City of Lyndon primary investment objectives, in order of priority, are the following:
(1) Safety. Safety of principal is the foremost objective of the City of Lyndon's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The goal is to mitigate credit risk and interest rate risk.
(2) Liquidity. The City of Lyndon's investment portfolio shall remain sufficiently liquid to enable the City of Lyndon to meet all operating requirements which might be reasonably anticipated.
(3) Return on investment. The City of Lyndon investment portfolio shall be designed with the objective of attaining a market rate of return throughout the budgetary and economic cycles, taking into account the City of Lyndon's investment risk constraints and the cash flow characteristics of the portfolio.
(D) Management's responsibility for the City of Lyndon investment program is the joint responsibility of the Designated Officials which shall be the Mayor and the City Treasurer. Both shall share the authority, subject to the approval of the governing body, to establish additional specific written procedures for the operation of the investment program that are consistent with this investment policy. The procedures shall include explicit delegation of authority, if any, to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Designated Officials. These Designated Officials shall be ultimately responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and employees. The controls shall be designed to prevent and control losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets or imprudent actions by officers and employees. The Designated Officials shall maintain all records related to the entity's investment program.
(Ord. 8-26-19A, passed 9-23-19)