4.1. ERMUSR 05-11-2010 - Laserfiche WebLink

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Elk River~~ Municipal Utilities .2~a N'ST ENT ~C ~.0 o~~cy It is the policy of Elk River Municipal Utilities to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity while conforming to all state and local statutes governing the investment of public funds, 2.0 c®pe The investment policy applies to all financial assets of the utility. These funds are accounted far in the utility's Annual Financial Report and include all of the water and Electric Funds. ~.0 .P~ude~ce Investments shall be made with judgment and care under circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, nat for speculation, but for investment, considering the probable safety of their capital as v~rell as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" standard, as defined by Minnesota Statute ~356A.Q4, Subd. Z, and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0 bjecti~es A11 investments shall be limited to those permitted by Minnesota Statute ~ 11 ~A. The primary objectives, in priority order, of the Elk River Municipal Utilities' investment activities shall be;