Laserfiche WebLink
iii. By investing operating funds primarily in shorter-term securities, <br /> money market mutual funds, or similar investment pools and <br /> limiting the average maturity of the portfolio to 3 years using the <br /> securities' stated final maturities. <br /> 4.2 Liquidity <br /> The investment portfolio shall remain sufficiently liquid to meet all operating <br /> requirements that may be reasonably anticipated. This is accomplished by <br /> structuring the portfolio so that securities mature concurrent with cash needs <br /> to meet anticipated demands (static liquidity). Furthermore, since all possible <br /> cash demands cannot be anticipated, the portfolio should consist largely of <br /> securities with active secondary or resale markets (dynamic liquidity). The <br /> City's cash flow shall be updated on a daily basis and will be considered prior <br /> to the investment of securities, which will reduce the necessity to sell <br /> investments for liquidity purposes. <br /> 4.3. Yield (Return on Investment) <br /> The City's investment portfolio shall be designed with the objective of attaining <br /> a market-average rate of return throughout budgetary and economic cycles <br /> taking into account the investment risk constraints and liquidity needs. The <br /> return on investments is to be accorded secondary importance compared to <br /> the safety and liquidity objectives described above. The core of investments <br /> will focus on relatively low risk securities with an expectation of earning a <br /> reasonable return relative to the risk being assumed. It is the general policy <br /> of the City to hold investments until market value equals or exceeds amortized <br /> cost or book value of the security. Securities shall not be sold prior to maturity <br /> with the following exceptions: <br /> A. a declining credit security could be sold early to minimize loss of <br /> principal; <br /> B. a simultaneous purchase of a security and the sale of another (security <br /> swap) to enhance the quality, yield, or target duration in the portfolio; <br /> or <br /> C. a sale of a specific security prior to its maturity and a capital gain or <br /> loss recorded in order to improve the credit quality, liquidity, or rate of <br /> return of the portfolio in response to market conditions and/or City risk <br /> preferences; <br /> D. general liquidity needs of the investment portfolio require that a security <br /> be sold; <br /> City of Santa-Annual Page 4July 1 2025 - <br /> Statement of investment Policy June 30,2026 <br /> Resolution No. 2025-019 <br /> Page 8 of 24 <br />