Objectives.
New Orleans City Code § 70-604
in effectSec. 70-604. - Objectives.
The primary objectives, in priority order, of the City of New Orleans' investment activities shall be:
(1) Safety. Safety of principal is the foremost objective of the investment program. Investments of the City of New Orleans shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
(2) Liquidity. The City of New Orleans' investment portfolio will remain sufficiently liquid to enable the City of New Orleans to meet all operating requirements which might be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).
(3) Return on investments. The City of New Orleans' investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City of New Orleans' investment risk constraints and the cash flow characteristics of the portfolio. Return on investment is of less importance compared to the 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. Securities shall not be sold prior to maturity with the following exceptions:
a. A declining credit security could be sold early to minimize loss of principal;
b. A security swap would improve the quality, yield, or target duration in the portfolio; or
c. Liquidity needs of the portfolio require that the security be sold.
(M.C.S., Ord. No. 18,621, §§ 1, 2, 2-5-98)
Source: City of New Orleans, Code of Ordinances and Home Rule Charter (Municode Library, library.municode.com)URL: https://library.municode.com/la/new_orleans/codes/code_of_ordinances?nodeId=PTIICO_CH70FI_ARTVIINPO_S70-604OBFetched: 10/28/2026