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C. Delegation of Authority-Authority to manage the investment portfolio is granted to the City's Finance Director/Treasurer,who shall act in accordance with established procedures and internal controls for the operation of the investment portfolio consistent with this investment policy. No person may engage in an investment transaction except as provided under the terms of this policy. The Finance Director shall be responsible for all transactions undertaken and shall establish a system of control. Each transaction will be acknowledged in writing by one of the following officials within 48 hours: r4,j` v" 1) City Administrator �c 2) Mayor or Acting Mayor 00 U� r 3. Investment Objectives 1-Pi ��' ,) The City will invest idle funds based on the following objectives: e A. Safety- The primary objective is the preservation of capital and the safeguarding of public funds by mitigating credit and interest rate risk. k,w- ")✓� a. Credit Risk-The City will minimize credit risk, which is the risk A' WI of loss due to the failure of the security issuer or backer. , ,,jY''L � cf b. Interest Rate Risk -The City will minimize interest rate risk, which is the risk that the market value of securities in the portfolio • will fall due to changes in the market interest rates. B. Term — Investments will be scheduled to cover all expenditures. Investments will not be longer than one year for cash flow and all excess funds may be invested for longer than one year. --> t,,M„4„ 13,iy! `. (rP C. Liquidity-The portfolio shall remain liquid to meet all operating e — requirements that may be reasonably anticipated. This is accomplished by S--/o y: structuring the portfolio so that securities mature concurrent with cash t;t s needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist of securities with active secondary or resale markets. Alternatively, a portion of the portfolio may be placed in money market mutual funds or government investment pools which offer same-day liquidity for short-term funds. D. Yield- The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. The benchmark to be used will be the 4M Plus Fund annual rate of return. Return on investment is of secondary importance compared to the safety and liquidity objectives. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative 2