City of Plymouth Proposed 2022-2023 Budget - Flipbook - Page 266
City of Plymouth General Rules and Regulations
SECTION 4
CITY OF PLYMOUTH INVESTMENT POLICY
4.1.
PURPOSE
It is the policy of the City of Plymouth to invest public funds in a manner which will
provide the highest investment return with the maximum security while meeting daily
cash flow needs of the City. This policy is intended to comply with all State of Michigan
statutes and local charter and ordinance provisions governing the investment of public
funds.
4.2
SCOPE
1.
This investment policy applies to all financial assets of the City of Plymouth. These
assets are accounted for in the various funds of the City of Plymouth
including the general fund, special revenue funds, debt service funds, capital
project funds, enterprise funds, internal service funds, trust and agency funds,
discreetly reported funds and any new funds established by the City of
Plymouth.
2.
4.3
Accordingly, funds which are not accounted for as City financial assets are
excluded from this policy. Specifically, employee pension fund and employee
deferred compensation funds are not subject to this policy as they are
administered and managed by separate legal entities.
PRUDENCE
1.
The standard of prudence to be applied by the investment officer will be the
"prudent person" rule which states the following. "Investments shall be made with
judgement and care, under circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in the management of their own
affairs, not for speculation, but for investment, considering the probable safety of
their capital as well as the probable income to be derived."
2.
The above standard is established as the standard for professional responsibility
and shall be applied in managing the City's entire portfolio.
3.
Investment officers of the City, acting according to this investment policy and
written procedures as may be established and exercising due diligence, shall be
relieved of personal responsibility for an individual security's credit risk or market
price changes, provided deviations from exceptions are reported to the City
Manager in a timely fashion and appropriate action is taken to control adverse
developments.
INVPOL22
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