Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 38 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 38 - Eligible investments are those securities and deposits authorized by statute (chapters 35.39, 39.58, 39.59, 39.60, and 43.250 RCW; RCW 43.84.080, 43.180.190). Eligible investments include, but are not limited to: ● U.S. Government obligations, ● U.S. Government Agency obligations, ● U.S. Agency Mortgaged-Backed securities, ● Repurchase Agreements, ● Municipal bonds, ● Washington State Local Government Investment Pool, ● Bankers’ Acceptances, ● Commercial Paper, ● Bank Notes, ● Non-negotiable Certificates of Deposit and Demand Deposits, ● Mutual Funds and Money Market Funds The City of Seattle has three objectives in managing its investments that define its risk profile and guide implementation of its investment strategy. In order of importance they are Safety of Principal, Maintenance of Liquidity, and Return on Investment. The City follows a set of Standards of Care when it comes to its investments that include the following: ● Social Policies: A City social policy shall take precedence over furthering the City’s financial objectives when expressly authorized by City Council resolution, except where otherwise provided by law or trust principles. ● Prudence: The standard of prudence to be used by investment personnel shall be the “Prudent Investor Rule” and will be applied in the context of managing an overall portfolio. ● Ethics and Conflict of Interest: Investment officers shall comply with the City’s Ethics Code (SMC 4.16.080) and annually submit a Financial Interest Statement to the city’s Ethics & Elections Commission that identifies any potential financial interest that could be related to the performance of the City’s investment portfolio. ● Delegation of Authority: The Director of Finance and Administrative Services has delegated management responsibility for the City’s investment program to the Director of Finance who has designated day to day management responsibility to investment officers under the supervision of the City’s Treasury Services Director. No persons may engage in an investment transaction except as