The primary objectives, in priority order, of the city’s investment program shall be:
(A) Safety. Safety of principal shall be the foremost objective of the investment program. Investments shall be made in a manner that seeks to ensure the preservation of capital in the overall portfolio. Credit risk will be minimized both by diversification (limiting the potential for loss from any one issuer or any one type of security) and by limiting investments to the types of securities described in § 37.094. Market risk will be minimized both by structuring the portfolio so that investments generally mature in time to meet anticipated cash requirements (limiting the need to sell securities prior to maturity) and by investing primarily in shorter-term securities;
(B) Liquidity. The investment portfolio shall be structured so that investments generally mature in time to meet anticipated cash requirements. Further, since all cash requirements cannot be anticipated, the portfolio shall consist primarily of cash equivalents and securities with active secondary or resale markets;
(C) Yield. The investment portfolio shall be structured with the objective of attaining a market rate of return, taking into account the constraints of safety and liquidity described above. Return on investment is less important than safety and liquidity;
(D) Full investment. To the extent practicable, all funds shall be fully deployed as earning assets; and
(E) Minimal turnover. Securities shall typically not be sold prior to maturity, with the following exceptions:
(1) A declining-credit security can be sold early to minimize the potential loss of principal;
(2) A security can be sold and replaced with another if such action improves the quality or yield of the portfolio; and
(3) A security can be sold early to meet liquidity needs.
(Prior Code, § 2-533) (Ord. 13-33, passed 12-9-2013)