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<br />STATEMENT OF CASH MANAGEMENT AND INVESTMENT POLICIES <br /> <br />CITY OF SAN MARCOS <br />DEPARTMENT OF FINANCE <br /> <br />I. INTRODUCTION <br /> <br />The City Manager is authorized and required to make rules and regulations and to <br />establish administrative policies and procedures relating to the cash management <br />and investment policies of the City. <br /> <br />It is anticipated that this policy statement will be reviewed and evaluated by <br />Council on an annual basis, to ensure that the policies and procedures expressed <br />herein are responsive to the prevailing cash management and investment <br />environment. Since this environment is subject to constant change, care must be <br />taken to ensure that such responsiveness is maintained. This policy statement <br />must, therefore, be appropriately amended, expanded, or purged on a continuing <br />basis. <br /> <br />If any changes are contemplated which substantially alter the intent and purpose <br />of these policies, other than to effect further administrative or procedural <br />efficiencies, the Director of Finance will discuss such changes with the City <br />Manager, as well as other legislative or administrative officers of the City who <br />have a direct and reasonable interest in such changes. <br /> <br />II. GENERAL POLICIES <br /> <br />A. In general, the cash management activities of the City of San Marcos shall <br />be conducted in a manner which is consistent with prevailing prudent <br />business practices which may be applied by other organizations of similar <br />size and financial resources, in compliance with appropriate State <br />statutes. <br /> <br />B. Investments of the City, or of funds held in its possession in a fiduciary <br />capacity, shall be made with the exercise of that judgment and care, under <br />circumstances then prevailing, which a person of prudence, discretion, <br />and intelligence would exercise in the management of their own affairs, <br />not for speculation, but for investment. <br /> <br />C. Any rules and policies promulgated by the City Manager shall be designed <br />in the best interest of the City and its citizens, and shall not afford <br />special financial advantage to any individual or corporate member of the <br />financial or investment community. <br /> <br />D. Expenses incurred for banking or financial services shall be treated in the <br />same competitive manner as other expenditures of City Funds. <br /> <br />E. Financial institutions that serve as depositories or perform banking <br />services for City funds shall meet the City'S established criteria for <br />overall financial strength, adequate capitalization, and appropriate <br />liquidity. <br /> <br />F. Securities dealers with whom the City conducts business shall be subject <br />to established guidelines and criteria. <br /> <br />City of San Marcos Cash Management and Investment Policy <br />Page 2 of 24 <br />