Ordinance 1903-92 - Laserfiche WebLink

3 . 1 The standard of prudence to be used by the Treasurer shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. The Treasurer acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk change or market price changes, provided deviations from expectations are reported to the Mayor in a timely fashion and appropriate action is taken to control adverse developments. 4.0 Objectives. The primary objectives, in priority order, of the City's investment activities shall be as follows: 4 . 1 Safety. Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4 .2 Liquidity. The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 4 .3 Return on investment. The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio. 4.4 Social Policy. Investment decisions shall further the City's social policies established by ordinances or City Council resolutions. 4. 5 Local Institutions. Local institutions shall be given preference when they are, in the judgment of the Treasurer, to be competitive with other institutions.