Cash and Investment Management
A written cash and investment policy is important to manage public funds. The essential purpose of City’s investment is to maximize interest income while preserving principal and maintaining sufficient liquidity to meet the City’s expenditure obligations. An investment policy describes the parameters for investing City’s excess funds to achieve this goal, thereby providing important direction to City’s management. In doing so, the City’s cash and investment policy improves the quality of decisions and demonstrates to rating agencies, the capital market, and the public that the City is well managed and is earning interest income suitable to its situation and economic environment.