(A) The standard of prudence to be used by the employees responsible for the investment of public funds shall be the “prudent person” standard, subject to the foregoing limitations, which state:
Investments shall be made with judgement and care, under circumstances then prevailing, which persons knowledgeable of investment practices, and persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the possible income to be derived.
(B) The above standard is established as the standard of professional responsibility and shall be applied in the context of managing the city investment portfolio. This policy recognizes that there are circumstances beyond the control of even the most prudent investor which impact the return obtained. However, officials and other employees of the city acting in accordance with this investment policy and written procedures as may be established and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided that deviations for expectations are reported in a timely fashion, and appropriate action is taken to control adverse developments.
(Ord. 99-O-17, passed - -99; Am. Ord. 2001-O-13, passed - -01)