§ 3.24.030. Policy declarations.

A.

It is the intent of this policy to establish the authority and procedures for the investment of the city's funds in an effort to:

1.

Maximize investment returns while minimizing risk.

2.

Maintain a level of liquidity to ensure meeting unanticipated cash needs.

3.

Allow for diversification of the city's portfolio.

4.

Recognize the impact of the city's investment program on the local economy.

B.

The criteria for selecting investments, and the order of priority shall be:

1.

Safety;

2.

Liquidity;

3.

Yield.

C.

The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule, which is:

Investments shall be made with 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.

The prudent investor rule shall be applied in the context of managing the overall portfolio.

D.

The investment officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for the specific security's credit risk or market price changes, provided that all adverse investment developments and adverse credit risks shall be immediately reported to the city manager and the city attorney. All adverse investment developments and adverse credit risks shall then be referred to the Investment Committee for appropriate consideration and action.

(Ord. 1578-98 § 2(part), 1998: Ord. 1339-88 § 3, 1988).