3. Return on Investment: The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and the cash flow characteristics of the portfolio. The average return on the State Treasurer’s Local Agency Investment Fund shall be considered the City’s benchmark for conservative investment transactions, and shall constitute the performance standard for the City portfolio’s rate of return. E. Prudence The standard of prudence to be used in the investment function shall be the "prudent investor standard", as defined in Government Code Section 53600.3, which states: "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” F. Delegation of Authority The City Treasurer is designated as the investment officer of the City, and is responsible for investment management decisions and activities. All investment transactions shall be authorized by the City Treasurer. This annual delegation of authority is subject to renewal by the City Council pursuant to Government Code Section 53607. G. Authorized Investments and Limitations Investment or deposit of City funds shall be governed by Government Code Sections 53600 and 53630 et. seq., and shall be further limited to the following authorized investments and instruments: 1. United States Treasury Bills, Notes and Bonds Maximum Amount: No limit Maximum Maturity: A maximum of $10 million may be invested for up to ten CITY INVESTMENT POLICY 2 of 8 COUNCIL POLICY ADOPTED 6/4/2024 128