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!lW U <br /> MINNESOTA <br /> Feb 3, 2003 <br /> CITY OF MOORHEAD INVESTMENT POLICY <br /> 411 <br /> � I <br /> 1.0 Purpose. <br /> The purpose of this policy is to establish specific guidelines the City of <br /> Moorhead (City) will use in the investment of City funds. Investment of City <br /> funds will be made in a manner that will provide a market-average rate of <br /> return while preserving and protecting the capital of the overall portfolio while <br /> meeting the daily cash flow demands of the entity and conforming to all State <br /> and local statutes governing the investment of public funds. <br /> The City investment policy shall be adopted by resolution of the City Council. <br /> The policy shall be reviewed on an annual basis by the Investment <br /> Committee and City Council. Any modifications made thereto must be <br /> approved by the City Council. <br /> 2.0 Scope. <br /> This investment policy applies to activities of the City with regard to investing <br /> the financial assets of all funds. These funds are accounted for in the City's <br /> Audited Financial Report and include the following: <br /> 2.1 Funds. <br /> • General Fund <br /> • Special Revenue Funds <br /> • Capital Project Funds • <br /> • Debt Service Funds <br /> • Enterprise Funds (excluding Elec. & Water) <br /> • Special Assessment Funds <br /> • Internal Service Funds <br /> • Tax Increment Funds <br /> • Trust and Agency Funds <br /> • Any New Fund Created by the City <br /> • Council, Unless Specifically Exempted <br /> 3.0 Prudence. <br /> The standard of prudence to be applied by the investment officials shall be <br /> the "prudent investor" rule which states, "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 <br /> own affairs, not for speculation, but for investment, considering the probable <br /> safety of their capital as well as the probable income to be derived." <br /> 3.1 The prudent investor rule shall be applied in the context of managing <br /> the overall portfolio. The investment officials acting in accordance <br /> with written procedures, the investment policy and exercising due <br /> diligence shall be relieved of personal responsibility for an individual <br /> security's credit risk or market price changes, provided deviations <br /> from expectations are reported in a timely fashion and appropriate <br /> action is taken to control adverse developments. <br /> 1 <br />