Page 427 - FY 2026-2027 Adopted Budget Book

Safety of Principal - All investments will be of high quality with no perceived default
risk. Market price fluctuations will occur. However, by managing Capital Improvement
Funds to not exceed the anticipated expenditure schedule, the market risk of the
overall portfolio will be minimized. No stated final investment maturity shall exceed
the shorter of the anticipated expenditure schedule or three years.

Liquidity - Most capital improvements programs have reasonably predictable draw
down schedules. Therefore, investment maturities should generally follow the
anticipated cash flow requirements. Financial institution deposits, investment pools
and money market mutual funds will provide readily available funds generally equal
to one month’s anticipated cash flow needs, or a competitive yield alternative for
short -term fixed maturity investments. A singular repurchase agreement may be
utilized if disbursements are allowed in the amount necessary to satisfy any
expenditure request. This investment structure is commonly referred to as a flexible
repurchase agreement.

Marketability - Securities with active and efficient secondary markets are necessary
in the event of an unanticipated cash flow requirement.

Diversification - Market conditions and arbitrage regulations influence the
attractiveness of staggering the maturity of fixed rate investments for bond
proceeds. Generally, if investment rates exceed the applicable cost of borrowing,
B edford is best served by locking in most investments. If the cost of borrowing
cannot be exceeded, then current market conditions will determine the
attractiveness of diversifying maturities or investing in shorter and larger amounts. At
no time shall the anticipated expenditure schedule be exceeded in an attempt to
bolster yield.

Yield - Achieving a positive spread to the cost of borrowing is the desired objective,
within the limits of the Investment Policy’s risk constraints. The yield of an equally
weighted, rolling six - month Treasury Bill portfolio will be the minimum yield
objective for non -borrowed funds.

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