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<br />262. <br /> <br />Summary of Changes to the Investment Policy. <br /> <br />- The Investment Policy becomes more generalized to eliminate specific procedures <br />which are already in place through the Public Funds Investment Act and the Public <br />Funds Collateral Act. The Policy is reorganized in a more logical manner and now <br />contains separate sections for specific functions of the investment program. <br /> <br />- Fund type names are matched to fund type names within the Comprehensive Annual <br />Financial Report (CAFR). <br /> <br />- An additional investment objective of Diversification is added. Diversification <br />minimizes credit and market risk and reduces the overall portfolio impact from <br />potential losses on individual securities. In order of importance, Diversification ranks <br />behind Safety and Liquidity, respectively, and before Yield. Diversification limits for <br />the portfolio are added to the Policy to achieve this new objective. The tone and <br />direction of the Policy and investment program is further enhanced through the <br />addition ofthis objective. <br /> <br />- Investment strategies now include a maximum dollar weighted average maturity for <br />the investment portfolio. <br /> <br />- An Investment Committee comprised of the City Manager, Deputy City Manager, <br />Director of Finance and Budget Officer is created to review monthly investment <br />reports and to maintain a list of authorized broker/dealers. The creation of the <br />Investment Committee serves to assist in the management of the investment program. <br /> <br />- The Policy now refers to ethics and conflicts of interest that will guide Investment <br />Officer(s) in their capacity and fulfillment of duties. <br /> <br />- The City's depository will be required to continuously submit their most recent <br />Consolidated Report of Condition (call report) so that staff may assess the <br />depository's current financial condition. <br /> <br />- Mortgage-backed securities are excluded from the authorized investment list. <br /> <br />- Maturity limit on Certificates of Deposit is changed from two years to one year. <br /> <br />- Commercial paper and AAA-rated money market funds are added to the authorized <br />investment list. <br /> <br />- A benchmark for performance is added to the Policy to use as a measuring tool in <br />determining whether the Yield objective has been met. This benchmark will provide a <br />formal evaluation of performance and occasional operational audits. <br />