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City of Orono o J 6 <br /> Financial Management Policies <br /> Policy 5 - Investment <br /> 5-1. PURPOSE <br /> The purpose of this investment policy is to establish: <br /> • The City's investment objectives <br /> • Investment reporting practices to management and council <br /> • Appropriate investment instruments <br /> • Criteria for selection of banks and dealers <br /> • Requirements regarding maturities and diversification <br /> • Investment principles of risk, prudence and ethics, and <br /> • Responsibilities of the investment function <br /> 5-2. SCOPE <br /> The investment policy applies to all funds in the custody of the City, including: <br /> • The General Fund <br /> • The Special Revenue Funds <br /> • The Debt Service Funds <br /> • The Capital Projects Funds <br /> • The Enterprise Funds <br /> • The Internal Service Funds <br /> Unless specified by City Council action, or otherwise required, City monies will be pooled in the <br /> Pooled Investment Trust Fund with the resulting investment income accruing to the various City <br /> funds as provided in Resolution No. 2105. <br /> 5-3. OBJECTIVES <br /> The objectives of the City's investment program are: <br /> 1. To preserve investment principal in the overall portfolio is the primary objective. <br /> 2. To remain sufficiently liquid to meet expenditure requirements. It is essential that cash <br /> is available when needed, therefore, the objective is to maximize yield while matching <br /> maturity dates with expenditure needs including provision of a cushion for possible <br /> unforeseen needs. <br /> 3. To diversify the investment portfolio by individual financial institution, government <br /> agency or by corporation in the case of commercial paper to reduce the exposure to risk <br /> of loss. <br /> 4. As custodians of the public trust, all participants in the investment process shall seek to <br /> act responsibly and avoid any transaction that might impair the credibility of the City. <br /> 5-1 <br />