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City of Plymouth General Rules and Regulations
SECTION 4
CITY OF PLYMOUTH INVESTMENT POLICY
4.1
PURPOSE
It is the policy of the City of Plymouth to invest public funds in a manner which will provide the
highest investment return with the maximum security while meeting daily cash flow needs of the
City. This policy is intended to comply with all State of Michigan statutes and local charter and
ordinance provisions governing the investment of public funds.
4.2
SCOPE
1.
This investment policy applies to all financial assets of the City of Plymouth.
These assets are accounted for in the various funds of the City of Plymouth
including the general fund, special revenue funds, debt service funds, capital
project funds, enterprise funds, internal service funds, trust and agency funds,
discreetly reported funds and any new funds established by the City of
Plymouth.
2.
4.3
Accordingly, funds which are not accounted for as City financial assets are
excluded from this policy. Specifically, employee pension fund and employee
deferred compensation funds are not subject to this policy as they are
administered and managed by separate legal entities.
PRUDENCE
1.
The standard of prudence to be applied by the investment officer will be the "prudent
person" rule which states the following. "Investments shall be made withjudgement
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
probable income to be derived."
2.
The above standard is established as the standard for professional responsibility
and shall be applied in managing the City's entire portfolio.
3.
Investment officers of the City, acting according to this investment policy and written
procedures as may be established and exercising due diligence, shall be relieved of
personal responsibility for an individual security's credit risk or marketprice changes,
provided deviations from exceptions are reported to the City Manager in a timely
fashion and appropriate action is taken to control adverse developments.
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