The overall direction of the city investment policy may be found in the following objectives, which have been explained to identify clearly the results expected:
(A) Safety of principal is the foremost objective of the investment policy. Investments of the city shall be undertaken in a manner that seeks to ensure the preservation of capital.
(B) Liquidity. The city’s investment portfolio will remain sufficiently liquid to enable the city to meet all operating requirements, which might be reasonably anticipated.
(C) Return on investment. The city’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the city’s investment risk restraints and the cash flow characteristics of the portfolio.
(D) Diversification. In order to further guarantee asset safety, the city shall diversify investments to avoid incurring unreasonable risks from the practice of concentrating investments in specific security types and/or individual financial institutions.
(E) Public confidence in the investment program is imperative. The city will avoid any transaction that might impair public confidence. Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs. The standard, therefore, avoids unwarranted speculation; emphasis is placed on the probable safety of capital rather than the probable income to be derived.
(Ord. 99-O-17, passed - -99; Am. Ord. 2001-O-13, passed - -01)