Res 2008-075 - Laserfiche WebLink

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instruction relating to investment responsibilities. A newly appointed Investment Officer must attend a training session of at least 10 hours of instruction within twelve months of the date the officer took office or assumed officer's duties. The investment training session shall be provided by an independent source approved by the Investment Committee. For purposes of this policy, an "independent source" from which investment training shall be obtained shall include a professional organization, an institution of higher education or any other sponsor other than a business organization with whom the City of San Marcos may engage in an investment transaction. V. OBJECTIVE AND STRATEGIES All City funds will be pooled for investment purposes. The primary obj ectives, in priority order, of the City's investment activities for all funds shall be: 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. 2. Llquldlty: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated. 3. Diversification: In order to meet the Safety objective, diversification is needed to minimize credit and market risk and to reduce overall portfolio impact from potential losses on individual securities. 4. Yield: The City's investment portfolio shall be designed with the objective of attaining a market rate of return in accordance with its designated benchmark based on the City's cash flow requirements throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics ofthe portfolio. Strategy The structure and management of the overall portfolio will address the varying needs, goals and objectives of each fund. Investment strategies for General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, and Trust and Agency Funds are designed to assure that anticipated cash flows are matched with adequate liquidity in each fund. The secondary strategy objective is to create a portfolio structure that will experience minimal volatility during economic cycles. This may be accomplished by purchasing high quality, short-to-medium term securities that will complement each other in a laddered or barbell maturity structure and assure the marketability of those investments should liquidity needs arise. Investments are to be chosen in a manner that promotes diversity by market sector, credit and maturity. The maximum dollar weighted average maturity of the portfolio will not exceed 27o days, dependent on market conditions, to accomplish these goals. Investment strategies for Debt Service Funds will primarily assure investment liquidity adequate to cover the debt service obligation for each consecutive debt service payment. Investments shall progressively fund each succeeding debt service. City of San Marcos Investment Policy Page 2