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IElk River Municipal Utilities <br /> ‘11, Investment Policy <br /> I <br /> 1.0 Policy <br /> IIt is the policy of Elk River Municipal Utilities to invest public funds in a manner which will <br /> provide the highest investment return with the maximum security while meeting the daily cash <br /> Iflow demands of the entity while conforming to all state and local statutes governing the <br /> investment of public funds. <br /> 2.0 Scope <br /> IThe investment policy applies to all financial assets of the utility. These funds are accounted for in <br /> the utility's Annual Financial Report and include all of the Water and Electric Funds. <br /> 3.0 Prudence <br /> IInvestments shall be made with judgment and care under circumstances then prevailing which <br /> persons of prudence, discretion, and intelligence exercise in the management of their own affairs, <br /> 10 not for speculation, but for investment, considering the probable safety of their capital as well as <br /> the probable income to be derived. <br /> I <br /> 3.1 The standard of prudence to be used by investment officials shall be the "prudent <br /> Iperson" standard, as defined by Minnesota Statute §356A.04, Subd. 2, and shall be applied <br /> in the context of managing an overall portfolio. Investment officers acting in accordance <br /> Iwith written procedures and the investment policy and exercising due diligence shall be <br /> relieved of personal responsibility for an individual security's credit risk or market price <br /> Ichanges, provided deviations from expectations are reported in a timely fashion and <br /> appropriate action is taken to control adverse developments. <br /> I <br /> 4.0 Objectives <br /> All investments shall be limited to those permitted by Minnesota Statute §118A. The primary <br /> objectives, in priority order, of the Elk River Municipal Utilities' investment activities shall be: <br /> III <br /> I <br /> I1 <br />