1998-05-27 Packet - Laserfiche WebLink

Home Browse Search

CITY OF CENTERVILLE INVESTMENT POLICY PURPOSE The purpose of this policy is to establish specific guidelines the City of Centerville will use in the investment of City funds. It will be the responsibility of the Deputy Clerk/Treasurer and /or City Administrator to invest City funds in order to attain a market rate of return while preserving and protecting the capital of the overall portfolio. Investments will be made, based on statutory constraints, in safe, low risk instruments. SCOPE The Deputy Clerk/Treasurer and /or City Administrator are responsible for the investing of all funds in the custody of the City, including, but not necessarily limited to, the General Funds, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Agency Funds, and excluding the 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 MN Statute 475.66 and 118 and exercising due diligence shall be relieved of personal responsibility 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. OBJECTIVE 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. Each investment Transaction shall seek to first insure that capital losses are avoided. The objective will be to mitigate credit risk and interest rate risk. Credit Risk is the risk of loss due to failure of the security issuer or backer. Interest Rate Risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates.