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