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CITY OF GEM LAKE <br />INVESTMENT POLICY <br />1. Purpose <br />Itis the policy of the City toinvest public funds in a manner which maximizes return and <br />provides maximumsecurity in preserving and protecting funds while:. meeting the daily cash flow <br />demands and conforming to all applicable federal, state and/or local.. statutes governing the <br />investment of public funds. <br />2. Standards of Care <br />A. Prudence - The standard of prudence to be used shall be the "prudentperson" <br />standard and shall be appliedin 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 ina timely fashion and the liquidity and the sale of <br />securities are carried our in accordance with the terms of this policy. <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 />B. Ethics and Conflicts of Interest— Employees involved in the investment process. <br />shall refrain frompersonal 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 />furtherdisclose any person financial/investment positions that could be related to <br />the performance of theinvestment portfolio. Employees shall refrain from <br />undertaking personal investmenttransactions with the same individual with whom <br />businessis conducted on behalf of the City. <br />C. Delegation of Authority — Authority to manage the investment portfolio is granted <br />to the City's Treasurer, who shall act in accordance with established procedures <br />and internal controls for the operation of the investment portfolio consistent with <br />this investment policy. No person may engage in an investment transaction <br />except as provided under the terms of this policy. The Finance Officer shall be <br />responsible for all transactions undertaken and shall establish a system of control. <br />1 <br />