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<br />- <br /> <br />City of Sunny Isles Beach - Investment Policy <br /> <br />PURPOSE <br /> <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 a <br />competitive investment return. <br /> <br />I. SCOPE <br /> <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 City <br />funds. <br /> <br />This policy does not apply to the City's pension funds, including those funds in chapters <br />175 and 185 or funds related to the issuance of debt where there are other existing <br />policies or indentures in effect which govern the investment of such funds. <br /> <br />This policy shall be construed and applied so as to comply with Section 218.415, F.S. <br /> <br />II. INVESTMENT OBJECTIVES <br /> <br />Investment objectives include safety of capital, liquidity of funds and investment income, in <br />that order. The following objectives will be applied in the management of the City's funds: <br /> <br />A. Safety of Capital <br /> <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 be <br />entered into with every effort to prevent capital losses, whether they are from <br />securities defaults, theft, of the impact of adverse market conditions. The objective <br />will be to mitigate credit risk and interest rate risk. <br /> <br />1. Credit Risk - The City will minimize credit risk, the risk of loss due to the failure of <br />the security issuer or backer, by: <br /> <br />a) Limiting investments to the authorized securities listed in this policy <br />b) Diversifying the investment portfolio on any investments below AM rating so <br />that potential losses on individual securities will be minimized. <br /> <br />2. Interest Rate Risk - The City will minimize the risk that the market value of <br />securities in the portfolio will fall due to changes in general interest rates, by: <br /> <br />Exhibit "A" <br />