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City of Pleasanton <br />INVESTMENT POLICY AND GUIDELINES <br /> April 1 Z, 2001 <br /> <br />POLICY <br /> <br />It is the policy of the City of Pleasanton to invest public funds in a manner which will provide the <br />highest investment return with the maximum security while meeting the daily cash flow demands of the <br />City and conforming to all state and local statutes governing the investment of public funds. <br /> <br />SCOPE <br /> <br />This investment policy applies to all financial assets of the City. These funds are accounted for in the <br />City's comprehensive Annual Financial Report and include: <br /> <br />· General Fund <br />· Enterprise Funds <br />· Internal Service Funds <br />· Capital Improvement Funds <br />· Special Revenue Funds <br />· Expendable Trust Funds <br />· Non-Expend Trust and Agency Funds <br />· Assessment District Agency Funds <br /> <br />PRUDENCE <br /> <br />Investments 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, not for <br />speculation, but for investment, considering the probable safety of their capital as well as the probable <br />income to be derived (i.e. the "prudent person" standard as defined by Civil Code #2261). <br /> <br />Investment officers acting in accordance with written procedures and the investment policy and <br />exercising due diligence shall be relieved of personal responsibility for an individual security's credit <br />risk or market price changes, provided deviations from expectations are reported in a timely fashion and <br />appropriate action is taken to control adverse developments. <br /> <br />The primary objectives, in priority order, of the City's investment action shall be: <br /> <br />Safety: Safety of principal is the foremost objective of the investment program. Investments of <br />the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the <br />overall portfolio. To attain this objective, diversification is required in order that potential losses <br />on individual securities do not exceed the income generated from the remainder of the portfolio. <br /> <br /> <br />