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INVESTMENT POLICY <br />OF THE CITY OF COLTON <br />I. Policy Statement <br />The purpose of this Statement of Investment Policy is to <br />provide governing guidelines for prudent cash management <br />and investment of public funds until such time as the funds <br />are needed to pay the obligations of the City. <br />II. Investment Objective <br />The ultimate objective of the Treasurer's investment program <br />is to acheive a reasonable rate of return on the portfolio <br />consistent with short-term interest rates, after having <br />given primary consideration to safety and preservation of <br />capital and liquidity sufficient to meet daily cash flow <br />needs. The priority of these factors in making investments <br />are: <br />(1) Safety and preservation of capital <br />(2) Liquidity <br />(3) Yield <br />I, the Treasurer, shall govern investment activities <br />pursuant to the "prudent man rule" as defined in Section <br />2261 of the California Civil Code and as applied to the <br />investment portfolio as a whole. The investment principle <br />stated here is that in: <br />"...investing ...property for the benefit of <br />another, a trustee shall exercise the judgement <br />and care, under the circumstances then <br />prevailing, which men of prudence, discretion <br />and intelligence exercise in the management of <br />their own affairs, not in regard to <br />speculation, but in regard to the permanent <br />disposition of their funds, considering the <br />probable income, as well as the probable of <br />their capital..." <br />1 <br />