A. The primary objectives, in order of priority, for the City of Anacortes' investment activities are as follows:
1. Legality. The city’s investments will be in compliance with all statutes governing the investment of public funds in the State of Washington.
2. Safety. Safety of principal is the foremost objective of the investment program. Investments of the city shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
3. Liquidity. The city’s investments will remain sufficiently liquid to enable the city to meet all operating requirements which might be reasonably anticipated.
4. Return on investments. The city’s investments shall be designed with the objective of attaining a market rate return throughout budgetary and economic cycles, taking into account the city’s investment risk constraints and cash flow characteristics of the portfolio.
B. The investments are limited to relatively low-risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions:
1. A security with declining credit may be sold early to minimize loss of principal.
2. A security swap that would improve the quality, yield or target duration in the portfolio.
3. Liquidity needs of the portfolio require that the security be sold. (Ord. 2937 § 1, 2014)