06-20-07 FPAC Minutes - Laserfiche WebLink

Home Browse Search

Ntid 97 Pf _ '' Inve stment Policy Purpose The purpose of this policy is to establish specific guidelines the City of Oak Grove will use in the investment of City funds. It will be the responsibility of the Finance Director/ Treasurer to invest City funds in a manner which will provide the highest investment return with minimum risk while meeting the daily cash flow demands of the City and conforming to all federal, state and local regulations governing the investment of public funds. Investment portfolio risk will be minimized to ensure that liquidity and marketability are maintained. The City will not invest in instruments that it cannot hold to maturity. The city will invest in securities that match the City's cash flow needs and debt service requirements. Scope The Finance Director/Treasurer is responsible for the investing of all funds in the custody of the City, including,but not necessarily limited to, the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, Agency Funds, and excluding pension funds. Prudence The standard of prudence to be used by investment officials shall be the "prudent investor", and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with this policy and with Minnesota Statute 118A and exercising due diligence shall be relieved of personal liability for an individual security's credit risk or market price changes,provided that reasonable action is taken to control adverse developments and unexpected deviations are reported in a timely manner. Objectives There are three main objectives of all investment activities that are prioritized as follows: A. Safety—Safety of principal is the foremost objective of the City. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of principal 0 Page 1 of 6