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D. general liquidity needs of the investment portfolio require that a <br />security be sold; <br />E. prepayment of City debt or contribution servicing obligation. In the <br />event the City is presented with an option for prepayment of a City <br />debt or contribution servicing obligation, the following analysis will be <br />conducted by Treasury investment staff with regards to a comparison <br />between the amortized savings which may be realized by exercising <br />such prepayment option and: <br />L the current portfolio yield; <br />ii. the trend of the debt or contribution servicing obligation; <br />iii. whether variances in the trend are substantial; <br />iv. the City's net cash position; and <br />v. the market value of investment instrument(s) recommended by <br />Treasury staff to be liquidated to fulfill a prepayment election. <br />Upon completion of said analysis, a recommendation shall be <br />presented to the Investment Advisory Committee for consideration for <br />approval or rejection. <br />When selling a security prior to maturity, City investment officials and/or <br />officers (see generally subsection 5.1 at seq. - Investment Authority and <br />Responsibility) must be prepared to justify the reasons and explain any <br />gains or losses. <br />Compliance with the investment policy does not measure return, but rather <br />manages risk. Policy compliance does not provide a benchmark to meet or <br />exceed, but is a model to follow. The City will benchmark its investment <br />portfolio performance to the appropriate "treasuries constant maturity' rate <br />based on portfolio maturities of the investment plan. <br />The City shall strive to maintain one hundred percent (100%) investment of <br />idle funds after consideration for a compensating balance to cover the cost <br />of services provided by the City's depository bank. The funds available for <br />investment are determined by cash flow projections updated daily. <br />Investments are monitored so that legal limits on types of investments are <br />not exceeded. <br />City of Santa - Annual July 1, 2018 - <br />Statement of Investment Policy 5tb i 1 June 30, 2019 <br />