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<br />-- <br /> <br />e <br /> <br />might impair public confidence in the City's ability to govern effectively. The governing body <br />recognizes that in a diversified portfolio, occasional measured losses due to market volatility are <br />inevitable, and must be considered within the context of the overall portfolio's investment return, <br />provided that adequate diversification has been implemented. <br /> <br />YIELD (Optimization of Interest Earninl!:s) The City's cash management portfolio shall be <br />designed with the objective of regularly meeting or exceeding the average rate of return on the <br />thf.ee meMB U.S. Treasury Bills at a maturity level comparable to the City's weighted average <br />maturity in days. The investment program shall seek to augment returns above this threshold <br />consistent with risk limitations identified herein and prudent investment principles. <br /> <br />V. OVERSIGHT RESPONSIBILITY <br /> <br />Oversight Responsibility for the investment activity of the City of La Porte shall rest with the <br />~ Fiscal Affairs Committee and the City Manager. <br /> <br />VI. RESPONSmILITY AND CONTROL <br /> <br />DELEGATION Management responsibility for the investment program is hereby delegated to <br />the Director of Finance, who shall establish written procedures for the operation of the investment <br />program, consistent with this investment policy. Such procedures shall include explicit delegation <br />of authority to persons responsible for investment transactions. <br /> <br />SUBORDINATES All persons involved in investment activities will be referred to as <br />"Investment Offieials Officers." No person shall engage in an investment transaction except as <br />provided under the terms of this policy and the procedures established by the Director of Finance. <br />The Director of Finance shall be responsible for all transactions undertaken, and shall establish a <br />system of controls to regulate the activities of Subordinate Investment Offieials Officers. <br /> <br />OUARTERL Y REPORTS The Director of Finance shall submit quarterly an investment report <br />that surmnarizes recent market conditions, economic developments and anticipated investment <br />conditions. The report shall summarize the investment strategies employed in the most recent <br />quarter and describe the portfolio in terms of investment securities, maturities, risk <br />characteristics, book values, market values and other features. The report shall explain the <br />quarter's total investment return and compare the return to budgetary expectations. The report <br />shall include an appendix that discloses all transactions during the quarter. <br /> <br />ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Director of Finance shall <br />present a comprehensive annual report on the investment program and investment activity. The <br />annual report shall include twelve-month and quarterly c011;1parison of returns, and shall suggest <br />improvements that might be made in the investment program. <br /> <br />PRUDENCE Investments shall be made with the exercise of due care, which persons of <br />prudence, discretion and intelligence exercise in the management of their own affairs, not for <br />speculation but for investment considering the probable safety of their own capital as well as the <br />probable income to be derived. Investment Offieials Officers acting in accordance with written <br />procedures and this investment policy and exercising due diligence shall be relieved of personal <br />responsibility for an individual security's credit risk or market price changes, provided deviations <br />from expectations are reported in a timely fashion and the liquidity and the sale of securities are <br />carried out in accordance with the terms of this policy. <br /> <br />3 <br />