Page 404 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Investment Policy

Procedures will include safekeeping, wire transfers, banking services contracts, and other
investment related activities.

The Investment Officer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials and staff.

The Investment Officer shall designate a staff person as a liaison/deputy in the event
circumstances require timely action and the Investment Officer is not available.

No officer or designee may engage in an investment transaction except as provided under
the terms of this Policy and the procedures established by the Investment Officer and
approved by the Town Manager.

VI. PRUDENCE
The standard of prudence to be used in the investment function shall be the "prudent
person" standard and shall be applied in the context of managing the overall portfolio.

This standard state:
"Investments shall be made with judgment 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 expected income to
be derived."

Limitation of Personal Liability - The Investment Officer and those delegated investment
authority, when acting in accordance with the written procedures and this Policy and in
accord with the Prudent Person Rule, shall be relieved of personal liability in the
management of the portfolio if deviations from expectations for a specific security's credit
risk or market price change are reported in a timely manner and that appropriate action is
taken to control adverse market effects.

VII. INTERNAL CONTROLS
The Investment Officer shall establish a system of written internal controls which will be
reviewed annually with the independent auditor of the Town. The controls shall be
designed to prevent loss of public funds due to fraud, employee error, and
misrepresentation by third parties, or imprudent actions by employees of the Town.

VIII. AUTHORIZED INVESTMENTS
Acceptable investments under this policy shall be limited to the instruments listed below.
The choice of high-grade government investments and high-grade, money market
instruments are designed to assure the marketability of those investments should liquidity
needs arise.

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