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F -1 <br />STATEMENT OF INVESTMENT POLICY <br />PURPOSE <br />To set forth the City's policy concerning the investment of temporarily idle funds. It is <br />the policy of the City to invest funds not required for immediate expenditures. <br />Investments will be in compliance with governing provisions of law and the policy <br />contained herein. Primary investment goals are security of principal, adequate liquidity <br />maintenance, and yield, in that order. Investments shall be placed only in securities as <br />outlined below. The balance between various investment instruments may change in <br />order to provide the City with the best combination of yield, liquidity, and a <br />consideration for other factors, such as placement of an appropriate percentage of <br />available investment funds locally. It shall be the main responsibility of the City <br />Council, in adopting this policy and reviewing the investment holdings on a monthly <br />basis, to preserve the investment principal. <br />INVESTMENT AUTHORITY <br />Under the direction of the City Manager, the investment authority has been delegated <br />to the Director of Administrative Services, who is responsible for administration of the <br />City's investment program. This authority shall be renewed annually as part of the <br />review and update of this Policy. In addition to the monthly investment report that is <br />submitted to the City Council, the Administrative Services Director shall provide more <br />detailed investment information to the City Council as requested. The City Council <br />shall be briefed directly by the City s investment advisors on a quarterly basis <br />whenever possible. <br />Sections 53600 -53601 of the California Government Code provide basic investment <br />limits and guidelines for government entities. In the event an apparent discrepancy is <br />found between this policy and Sections 53600 - 53601, the more restrictive parameters <br />will take precedence. <br />LIQUIDITY <br />Sufficient funding to accommodate at least two- week's projected cash outflow is to be <br />maintained in immediately available investments, such as the State Local Agency <br />Investment Fund, maturing certificates of deposit, or similar liquid instruments. An <br />analysis of cash flow must be conducted at least weekly to serve as the basis for <br />determining appropriate maturities for investments. At no time shall the liquid cash on <br />1