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<br />CITY OF ARDEN HILLS <br /> <br />INVESTMENT POLICY <br /> <br />1. Purpose <br /> <br />It is the policy of the City to invest public funds in a manner which maximizes return and <br />provides maximum security in preserving and protecting funds while meeting the daily cash flow <br />demands and conforming to all applicable federal, state and/or local statutes government the <br />investment of public funds. <br /> <br />2. Staudards of Care <br /> <br />A. Prudence - The standard of prudence to be used shall be the "prudent person" <br />standard and shall be applied in the context of managing an overall portfolio. <br />Individuals acting in accordance with written procedures and this investment <br />policy and exercising due diligence shall be relieved of personal responsibility for <br />an individual security's credit risk or market price changes, provided deviations <br />from expectations are reported in a timely fashion and the liquidity and the sale of <br />securities are carried our in accordance with the terms ofthis policy. <br /> <br />The "prudent person" standard states that, "Investments shall be made with <br />judgment and care, under circumstances then prevailing, which persons of <br />prudence, discretion and intelligence exercise in the management of their own <br />affairs, not for speculation, but for investment, considering the probable safety of <br />their capital as well as the probable income to be derived." <br /> <br />B. Ethics and Conflicts of Interest - Employees involved in the investment process <br />shall refrain from personal business activity that could conflict with the proper <br />execution and management of the investment program, or that could impair their <br />ability to make impartial decisions. Employees shall disclose any material <br />interests in financial institutions with which they conduct business. They shall <br />further disclose any person financial/investment positions that could be related to <br />the performance of the investment portfolio. Employees shall refrain from <br />undertaking personal investment transactions with the same individual with whom <br />business is conducted on behalf of the City. <br /> <br />C. Delegation of Authority - Authority to manage the investment portfolio is granted <br />to the City's Finance Director/Treasurer, who shall act in accordance with <br />established procedures and internal controls for the operation ofthe investment <br />portfolio consistent with this investment policy. No person may engage in an <br />investment transaction except as provided under the terms of this policy. The <br />Finance Director shall be responsible for all transactions undertaken and shall <br /> <br />I <br />