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City of Sunny Isles Beach - Investment Policy <br />PURPOSE <br />The purpose of this policy is to set forth the investment objectives and parameters for the <br />management of public funds of the City. These policies are designed to ensure the prudent <br />management of public funds, the availability of operating and capital funds when needed and <br />a competitive investment return. <br />This investment policy applies to the investment of public funds in excess of amounts <br />needed to meet current expenses, which includes cash and investment balances of <br />City funds. <br />This policy does not apply to the City's pension funds, including those funds in <br />Chapters 175 and 185, jF.S.) or funds related to the issuance of debt where there are <br />other existing policies or indentures in effect which govern the investment of such <br />funds. <br />This policy shall be construed and applied so as to comply with Section 218.415, F.S., <br />as amended. <br />II. INVESTMENT OBJECTIVES <br />Investment objectives include safety of capital, liquidity of funds, and investment <br />income, in that order. The following objectives will be applied in the management of <br />the City's funds: <br />A. Safety of Capital <br />The primary objective of the City's investment program is the protection of public <br />funds. Investments shall be undertaken in a manner that seeks to ensure the <br />preservation of capital in the overall portfolio. Each investment transaction shall <br />be entered into with every effort to prevent capital losses, whether they are from <br />securities defaults, theft, or the impact of adverse market conditions. The <br />objective will be to mitigate credit risk and interest rate risk. <br />1. Credit Risk - The City will minimize credit risk, the risk of loss due to the <br />failure of the security issuer or backer, by: <br />a) Limiting investments to the authorized securities listed in this policY!t] <br />b) Diversifying the investment portfolio on any investments below AAA <br />rating so that potential losses on individual securities will be minimized. <br />2. Interest Rate Risk - The City will minimize the risk that the market <br />value of securities in the portfolio will fall due to changes in general interest <br />rates, by: <br />411 <br />