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1.0 Policy <br /> It is the City of Everett's policy to invest its funds in a manner which will provide maximum <br /> security, meet daily cash flow demands, conform to all state statutes and local ordinances <br /> governing the investment of public funds, and provide a market rate of return through <br /> budgetary and economic cycles. <br /> 2.0 Scope <br /> This Investment Policy, adopted by the Everett City Council, supersedes any previous <br /> Investment Policy and applies to all financial assets of the City, except the Police and Fire <br /> Pension Funds,which are covered under separate investment policies. Funds covered under <br /> this policy include: <br /> • General Fund <br /> • Special Revenue Funds <br /> • Debt Service Funds <br /> • Capital Projects Funds <br /> • Enterprise Funds <br /> • Internal Service Funds <br /> • Fiduciary Funds, including the current portion of the Pension Trust Funds, Expendable <br /> Trust Funds, and Agency Funds <br /> These funds are accounted for in the Comprehensive Annual Financial Report. <br /> 3.0 Standards of Care <br /> Investments shall be made with judgment and care—under circumstances then prevailing— <br /> which persons of prudence, discretion, and intelligence exercise in the management of their <br /> own affairs, not for speculation, but for investment, considering the probable safety of the <br /> City's capital as well as the probable income to be derived. <br /> The standard of prudence to be used by investment officials shall be the prudent person or <br /> "prudent investor"standard and shall be applied in the context of managing an overall <br /> portfolio under prevailing economic conditions at the moment of investment commitments. <br /> Investment officials acting in accordance with written procedures and the investment policy, <br /> and exercising due diligence shall be relieved of personal responsibility for an individual <br /> security's credit risk or market price change, provided deviations from expectations are <br /> reported and efforts are made to control adverse developments. <br /> 4.0 Objectives <br /> The primary objectives, in priority order, of the City's investment activities shall be: <br /> 4.1 Safety: Safety of principal is the foremost objective of the investment program. <br /> Investments of the City of Everett will be undertaken in a manner that seeks to ensure <br /> the preservation of capital in the overall portfolio. To obtain this objective, <br /> diversification is required so that potential losses on individual securities do not <br /> exceed the income generated from the remainder of the portfolio. <br /> 4.2 Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the <br /> City to meet all cash requirements that might be reasonably anticipated. This is <br /> 2 City of Everett Investment Policy(2017) <br /> 16 <br />