Res 2012-023 - Laserfiche WebLink

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INVESTMENT POLICY — OPERATING AND BOND FUNDS CITY OF SAN MARCOS FINANCE DEPARTMENT POLICY It is the policy of the City of San Marcos to invest public funds in a manner which will optimize interest earnings with maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds II. SCOPE This Investment Policy (hereafter referred to as Policy) applies to all financial assets of the City except Reserve Funds which are longer in terms and represent different risk profiles. Reserve Funds are managed and controlled by a separate Investment Policy. These financial assets covered by this Policy are within funds that are accounted for in the Comprehensive Annual Financial Report and include: 1. General Fund 2. Special Revenue Funds 3. Capital Projects Funds 4. Debt Service Funds 5. Enterprise Funds 6. Trust and Agency Funds and any new funds created by the City unless specifically exempted by the City Council and this Policy. III. PRUDENCE The standard of prudence to be used by investment officers and Finance Administrators shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio Investments shall be made with judgment and care —under circumstances then prevailing —which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. IV. OBJECTIVES All operating and bond funds will be pooled for investment purposes. The primary objectives, 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. Liquidity: 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 supplement 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 which is based on the City of San Marcos Investment Policy Page I