Appendix I
Non-Tax Revenue Plan
Appendix A
Naperville Park District Financial Policy Investment Policy
Policy FN14
General Objectives The primary objectives of investment activities, in priority order, shall be safety, liquidity, and yield. Safety of Principal The safety of principal is the foremost objective of the Naperville Park District's Investment Policy. All investments shall be undertaken in a manner that seeks to ensure the preservation of the principal. The objective will be to minimize credit risk and interest rate risk. a. Credit Risk – The Naperville Park District will minimize credit risk, which is the risk of loss due to the failure of the security issuer or backer by; Limiting investments to the types of securities listed in the Authorized Investments section of this policy. Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from an individual issuer will be minimized. b. Interest Rate Risk – The Naperville Park District will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by: Structuring the investment portfolio so that securities mature to meet cash requirements for on-going operations, thereby avoiding the need to sell securities on the open market prior to maturity. Investing operating and reserve funds in securities, money market funds, or similar investment pools permitted by this policy and the Public Funds Investment Act. Average and final maturities will be limited based on the investment parameters established for both operating and reserve funds in accordance with this policy. Investing with institutions designated as Federally Insured. Prequalifying Institutions permitted to hold Public Funds. Liquidity of Funds The investment portfolio shall remain sufficiently liquid to enable the Park District to meet all of its reasonably anticipated operating requirements, thereby avoiding the need to sell securities on the open market or redeeming time deposits prior to maturity. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demand (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, a portion of the portfolio should be placed in a money market mutual fund or local government investment pool which offer same day liquidity for short-term funds.
Effective: August 10, 2006 Revised: March 13, 2014
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Revised: May 12, 2011 Reviewed: June 13, 2013 Reviewed: March 9, 2017 Reviewed: March 14, 2019
Reviewed: March 12, 2015 Revised: February 11, 2016 Reviewed: March 8, 2018
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Naperville Park District | 2023 MASTER PLAN
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