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I.POLICY <br />ItisthepolicyoftheCityofLaPorte,Texas(the"City")toadministerandinvestitsfundsina <br />mannerwhichwillpreservetheprincipalandmaintaintheliquiditythroughlimitationsand <br />diversificationwhilemeetingthedailycashflowrequirementsoftheCity.TheCitywillinvestall <br />availablefundsinconformancewithlegalandadministrativeguidelines,seekingtooptimize <br />interestearningstothemaximumextentpossible. <br />Thepurposeofthisinvestmentpolicyistocomplywithallstatutesgoverningtheinvestmentof <br />the/źƷǤ͸ƭfunds,includingthePublicFundsInvestmentAct,Chapter2256oftheTexas <br />GovernmentCode(theͻ!ĭƷͼΜͲwhichrequirestheCitytoadoptawritteninvestmentpolicy <br />regardingtheinvestmentofitsfundsandfundsunderitscontrol.TheInvestmentPolicy <br />addressesthemethods,proceduresandpracticesthatmustbeexercisedtoensureeffectiveand <br />judiciousfiscalmanagementofthe/źƷǤ͸ƭfunds. <br />II.SCOPE <br />TheCitywillstrivetoearnareturnonfundsinvestedatthehighestinvestmentreturnpossible <br />aftertakinginconsiderationtheprimarygoalsofpreservationofprincipalandliquidityoffunds <br />invested,consistentwiththepolicyobjectivesdescribedbelow.Thisinvestmentpolicyappliesto <br />theinvestmentactivitiesofthegovernmentoftheCityofLaPorte,Texas. <br />FUNDSINCLUDEDThe/źƷǤ͸ƭfunds,whicharepooledtogetherandconstitutetheinvestment <br />portfolio,includeallfinancialassetsofallfundsmanagedbytheCity,includingbutnotlimitedto <br />receiptsoftaxrevenues,chargesforservices,bondproceeds,interestincomes,loansandfunds <br />receivedbytheCitywheretheCityperformsacustodialfunction.Thesefundsareaccountedfor <br />inthe/źƷǤ͸ƭComprehensiveAnnualFinancialReport(CAFR)andinclude: <br />GeneralFund <br />SpecialRevenueFunds <br />DebtServiceFunds <br />CapitalProjectsFunds <br />EnterpriseFunds <br />InternalServiceFunds <br />Investmentincomewillbeallocatedtothevariousfundsbasedontheirrespectiveparticipation <br />andinaccordancewithgenerallyacceptedaccountingprinciples. <br />III.OBJECTIVES <br />SAFETYTheprimaryobjectiveoftheCity'sinvestmentactivityisthepreservationofcapitaland <br />theprotectionofinvestmentprincipalintheoverallportfolio.Eachinvestmenttransactionshall <br />seekfirsttoensurethatcapitallossesareavoided,whethertheyarefromsecuritiesdefaultsor <br />erosionofmarketvalue.TheCitywillstrivetominimizecreditriskbylimitinginvestmentstothe <br />safesttypesofinvestments,prequalifyingthefinancialinstitutionsandbroker/dealerswithwhich <br />theCityconductsbusiness,anddiversifytheinvestmentportfoliosothatpotentiallosseson <br />individualissuerswillbeminimized.Tominimizeinterestraterisk,theCitywillladderthe <br /> <br /> <br />