Investment Policies

Invest the City's operating cash to ensure its legality, safety, provide for necessary liquidity, avoid imprudent risk, and optimize yield. Legality, followed by preservation of principal, is always the first objective. Rate-of-return is last.

  1. Pursuant to the provisions of ORS 294.035, 294.040, 294.052, 294.135, 294.145, and 294.800, the City Manager is authorized to invest any surplus funds to include all bond and sinking funds into allowable investments at current market prices as described in ORS 294.035, subject to any limitations imposed by law. The investment objectives are:
    1. Preservation of invested capital.
    2. Liquidity.
    3. Return. 
  2. Safekeeping shall be consistent with modern investment, banking, and commercial practices and may include physical possession, book entry, and automated recordation.
  3. Except for funds requiring special handling (i.e. bond proceeds subject to arbitrage), the maximum stated final maturity of individual securities in the portfolio shall be three years. 
  4. Diversification of the City's investment portfolio will be consistent with the percent limitations under ORS 294.035 (i.e. 2.5% and 15% maximums for corporate indebtedness) to include certain credit rating minimums.