6.3 ERMUSR 09-13-2005 - Laserfiche WebLink

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I I. 4.1 Safety Investments of the Elk River Municipal Utilities shall be undertaken in a manner that I seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that losses on individual securities do not exceed the I income generated from the remainder of the portfolio. 4.2 Liquidity I The Elk River Municipal Utilities' investment portfolio will remain sufficiently liquid to I enable the Elk River Municipal Utilities to meet all operating requirements which might be reasonably anticipated. I4.3 Return on Investment The Elk River Municipal Utilities' investment portfolio shall be designed with the objective I 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 Icharacteristics of the investment portfolio. IP4.4 Maintaining the Public's Trust All officials and employees who are part of the investment process shall seek to act Iresponsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the municipality's ability to govern Ieffectively. I5.0 Delegation of Authority Authority to manage the Elk River Municipal Utilities' investment program is derived from the Ifollowing: Minnesota Statutes §118A. Management responsibility for the investment program is hereby delegated to a utility committee comprised of the Finance Director, General Manager, and Ia 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 tshall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. I/4111 I I2