Treasury Management

Treasury management includes management of the City's cash and investments.

It is the City's policy to invest its public funds in a manner which will ensure the preservation of capital while providing the highest investment return with the maximum security, meeting the daily cash flow needs of the City, and conforming to all state and local statutes governing the investment of public funds.

Standards of Prudence 

The standards of prudence to be applied by the Director of Finance or investment advisor is the "prudent person" and / or "prudent investor" standard which states, "Investments shall be made with judgement and care, under circumstances then prevailing, which persons, of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the probable safety of their capital as well as the probable income to be derived." 

The prudent person standard shall be applied in the context of managing the overall portfolio.

Objectives 

The primary objectives and procedures of the City of Berea's investment activities shall be in the following order of importance:

  • Safety - Safety of principal is the foremost objective of the investment program. Investments of the City of Berea shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
  • Liquidity - The City of Berea's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
  • Return on investment - The investment portfolio of the City of Berea shall be designed in a manner to attain a measurable market rate of return throughout budgetary and economic cycles, with the City's investment risk constraints and the cash flow characteristics of the portfolio.
  • Maintain the Public's Trust - All participants in the investment process shall seek to act responsibly as custodians of the public trust. The overall investment portfolio shall be designed and managed with a degree of professionalism worthy of the public trust.