06-20-07 FPAC Minutes - Laserfiche WebLink

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• City of Eagan INVESTMENT POLICY Approved by City Council on October 21, 1997 The purpose of this Policy Statement is to establish standards governing the investment of City funds. It is the City's policy that available funds be invested in a manner which will provide the highest investment return, with the maximum security, while meeting the daily cash flow demands of the City and conforming to all Minnesota statutes governing the investment of public funds. Scope This policy applies to all investments made by the City. Prudence The standard of prudence to be used by investment officials of the City shall be the "prudent person" standard which states: "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. The investment officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, provided that these deviations from expectations are reported immediately and that appropriate action is taken to control adverse developments. Delegation of Authority In accordance with Minnesota Statutes 118A.02, the City Council authorizes the Finance Director to designate depositories and make investments for the City. The Assistant Finance Director is also authorized to make investments for the City. In the absence of both the Finance Director and the Assistant Finance Director, the Accountant II is authorized to make investments. • 1