This policy applies to the investment of all District funds, excluding the investment of employee benefit trust funds. All transactions involving the District's funds (except employee benefit trust funds) and related activity of any funds shall be administered in accordance with the provisions of this policy and accompanying procedure.
District funds in excess of those immediately needed shall be properly and prudently invested. Authority to manage the District's investments is granted to the Business Manager or District Administrator and derived from state law regarding investments.
The primary objectives of the District's investment activities, in priority order, shall be:
1. Safety - Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
2. Liquidity - The District's investment portfolio shall be structured in such a manner as to provide sufficient liquidity to meet all operating requirements/obligations that might be reasonably anticipated.
3. Return on Investment/Yield - The District's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, commensurate with the District's investment risk constraints, the cash flow characteristics of the portfolio, and legal restrictions for return on investments.
Minimal risk tolerance with long-term expectations for each asset classification shall guide the strategic decisions regarding individual purchases and overall portfolio structure. Authorized district staff are empowered to invest in those specific types of securities permitted by law and in accordance with established District procedure(s).
The District shall maintain a set of procedures for the investment of District funds that addresses the following elements:
- A listing of authorized investments.
- The standard of care that must be maintained by the persons investing the public funds.
- Investment and diversification guidelines that are appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio.
- Guidelines regarding collateral requirements, if any, for the deposit of public funds in a financial institution, and, if applicable, guidelines for contractual arrangements for the custody and safekeeping of that collateral.
- A system of internal controls or operational procedures designed to prevent losses of funds that might arise from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the District.
- Appropriate periodic review of the investment portfolio, its effectiveness in meeting the District's needs for safety, liquidity, rate of return and diversification, and its general performance.
- Reporting requirements.
- Criteria for the selection of investment advisors, money managers and financial institutions.
- Ethics and conflicts of interest.
First Reading: May 21, 2013
Second Reading: June 4, 2013
Approved: July 16, 2013
For the Board: Tom Steiner, President; Lynn Jaeger, Vice President; Cole Marshall, Clerk; Bill Barhyte, Treasurer; Dean Troyer, Member