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B <br />CITY OF ORONO <br />INVESTMENT POLICY <br />Draft Amendment February 22,1999 <br />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 ftmction <br />SCOPE <br />The investment policy applies to all ftmds 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 <br />in the Pooled Investment Trust Fund with the resulting investment income accruing to the various <br />City funds as provided in Resolution No. 2105. <br />ORTECTIVES <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 maturity dates <br />with expenditure needs including provision of a cushion for possible unforeseen needs. <br />3. To diversify the investment portfolio by individual financial institution, government <br />agency or by corporation in the case of conunercial paper to reduce the exposure to risk 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.