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INVESTMENT POLICY Adopted 03/12/2018 Action #74 Amended 01/12/2026 Action # TOWN OF AURORA INVESTMENT POLICY I. SCOPE This investment policy applies to all moneys and other financial resources available for deposit and investment by the Town of Aurora on its own behalf or on behalf of any other entity or individual. II. OBJECTIVES The primary objectives of the local government’s investment activities are, in priority order: • To conform with all applicable federal, state and other legal requirements (legality); • To adequately safeguard principal (safety); • To provide sufficient liquidity to meet all operating requirements (liquidity) and • To obtain a reasonable rate of return (yield). III. DELEGATION OF AUTHORITY The governing board’s responsibility for administration of the investment program is delegated to the Town Supervisor, who shall establish written procedures for the operation of the investment program consistent with these investment policies. Such procedures shall include internal controls to provide a satisfactory level of accountability based upon records incorporating the description and amounts of investments, the fund(s) for which they are held, the place(s) where kept, and other relevant information, including dates of sale or other dispositions and amounts realized. In addition, the internal control procedures shall describe the responsibilities and levels of authority for key individuals involved in the investment program. IV. PRUDENCE All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the Town of Aurora to govern effectively. Investments shall be made with prudence, diligence, skill, judgment and care, under circumstances then prevailing, which knowledgeable and prudent persons acting in like capacity would use, not for speculation, but for investment, considering the safety of the principal as well as the probable income to be derived. All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. V. DIVERSIFICATION It is the policy of the Town of Aurora to diversify its deposits and investments by financial institution, by investment instrument, and by maturity scheduling. The governing board shall establish appropriate limits for the amount of investments that can be made with each financial institution or dealer, and shall evaluate this listing at least annually. VI. INTERNAL CONTROLS It is the policy of the Town of Aurora for all moneys collected by any officer or employee of the government to transfer those funds to the Town of Aurora within 7 days of deposit, or within the time period specified in law, whichever is shorter. The Town Supervisor is responsible for establishing and maintaining internal control procedures to provide reasonable, but not absolute, assurance that deposits and investments are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management’s authorization, properly recorded, and managed in compliance with applicable laws and regulations. VII. DESIGNATION OF DEPOSITARIES The banks and trust companies that are authorized for the deposit of moneys are as follows: • JP Morgan Chase Bank • Bank of America • Bank of Holland • Key Bank