The primary objectives, in priority order, of investment activities shall be (as specified in the state’s Money Management Act, UCA § 51-7-17).
(A) Safety of principal. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The goal will be to mitigate credit risk and interest rate risk.
(B) Need for liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
(C) Yield on investments. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints of safety and liquidity needs, as regulated by the state’s Money Management Act and rules of the state’s Money Management Council, including rules of pertinent bond resolutions or indentures, or other pertinent legal restrictions.
(D) Different objectives. Recognition of the different investment objectives of operating and permanent funds.
(E) Maturities. Maturity of investments, so that the maturity date of the investment does not exceed the anticipated date of the expenditure of funds.
(Ord. 2021-04, passed 1-19-2021)