The primary objectives, in priority order, of investment activities shall be the following:
(A) Legality. Conformance with state law and other pertinent legal restrictions upon the municipality, if any;
(B) Risk adversity. Investments that seek to prioritize the preservation of capital and safety of principal ahead of maximizing investment returns in the various fund portfolios;
(C) Liquidity. Liquidity requirements that allow flexibility to meet anticipated and unanticipated expenditures;
(D) Fund individuality. Recognition of differing objectives and needs of various fund portfolios while emphasizing an acceptable rate of return;
(E) Diversification. Diversification by factors such as asset class, market and credit risk, and tax treatment, in order to reduce the volatility of returns and improve the overall efficiency and resilience of the various fund portfolios;
(F) Rate of return. Earn an acceptable rate of return on investments based on predetermined index benchmarks yet consistent with the foregoing objectives; and
(G) Community. Use of local banks and other financial service businesses to support and bolster our community, but not at the expense of sacrificing any aforementioned consideration.
(Prior Code, § 3.A08.040) (Ord. 2018-22, passed 12-12-2018)