4.1. ERMUSR 05-11-2010 - Laserfiche WebLink

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4.1 Samar m Investments of the Eik River Municipal Utilities shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversif cation is required in order that losses on individual securities do not exceed the income generated from the remainder of the portfolio, 4.2 Li uidi~ -The Elk River Municipal Utilities' investment portfolio will remain sufficiently liquid to enable the Elk River Municipal Utilities to meet all operating requirements which might be reasonably anticipated. 4.3 Return on Investment ~ The Elk River Municipal Utilities' investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, The investment strategy will take into account the constraints on risk and cash flow characteristics ofthe investment portfolio. 4.4 Maintaining the ~ublic's.Trust ~ All officials and employees who are part of the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public conf dance in the municipality's ability to govern effectively. ~.0 e~e~~~~o~ o ~4~t~i®~i Authority to manage the Elk River Municipal Utilities' investment program is derived from the following: Minnesota Statutes § 11 SA. Management responsibility for the investrraent program is hereby delegated to a utility committee comprised of the Finance Director, Director of operations, and a member of the board. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the committee. The committee shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 6.0 Ethics and Confldct of Interest officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the investment program, or which could reasonably cause others to question or doubt their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Finance Director any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any personal financiallinvestmentpnsitions that could be related to the performance of the Elk River Municipal Utilities' portfolio. 7.4 ~4~~1i®~i~ed .~"ana~clal e~le~~ aid I~~~l~ions The Finance Director will maintain a list of f nancial institutions authorized to provide investment services. In addition, a list will be maintained of approved security brokerldealers selected by credit worthiness, who maintain an off ce in the State of Minnesota. These may include "primary dealers" or regional dealers that qualify under Securities ~ Exchange Commission Rule 15c3 ~ 1 uniform net capital rule, All brokers doing business with the Utilities shall have a broker Certification form on file with the Finance Director in accordance with Z