Appendix I
Non-Tax Revenue Plan
Appendix A
Financial Policy Investment Policy Policy FN14
Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout the budgetary and economical cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Standards of Care 1. Delegation of Authority Management responsibility for the investments is borne by the Finance Director, who shall act in accordance with this investment policy. The Finance Director may explicitly delegate authority to other persons responsibility for investment transactions and recordkeeping. Investment Managers shall have full discretion over funds subject to the guidelines established by this policy and the Board. 2. Prudence The standard of prudence to be used by the Finance Director, and her authorized delegates, shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. The Finance Director acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. The “prudent person” standard states that “Investments shall be made with judgment 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 Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Officers, employees and investment managers shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investments positions that could be related to the performance of the District’s investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Naperville Park District. probable income to be derived.” 3. Ethics and Conflicts of Interest
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276 Naperville Park District | 2023 MASTER PLAN
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