109.02 OBJECTIVES.

   The following investment and deposit objectives shall be applied in the management of City funds:

   (a)   The primary objective of the City's investment activities is the preservation of capital and the protection of investment principal.

   (b)   Those responsible for investing the City's public funds shall strive to maximize the return on the portfolio but shall avoid assuming unreasonable investment risks.

   (c)   The City's investment portfolio shall remain sufficiently liquid to enable the City to meet operating requirements which might reasonably be anticipated.

   (d)   The City's investments shall be diversified to avoid the assumption of unreasonable and avoidable risks associated with specific types of securities or individual financial institutions.

   (e)   Investments shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which 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 probable income to be derived.

   (f)   A factor in determining which depository should hold the City's public funds shall be the City's desire to obtain the best possible banking service at the lowest possible cost. (Ord. 87-253. Passed 5-27-87.)