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Home My WebLink AboutRES 930914-U - Amend Investment PolicyKN NO. 013CRAAA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AN[ENDING THE EXISTING CITY OF GEORGETOWN INVESTAIENT POLICY EFFECTIVE SEPTEMIBER 14, 1993 )WHEREAS, the goal of the City of Georgetown is to implement an investment policy that utilizes all current munici al investment practices, while ensuring the safety and availability of ip all funds entrusted to the City; and MIN" I a W 11,114 NO 11111 101 =1111 *101y 11 i 11 - 9 Re -111,211 -111 llffira 11,0119 11*01,191 W91.2,111 0*11111111 ill -1111 If I ji 1,10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this resolution implements Finance Policy 1 of the Century Plan - Policy Plan Element, which states: "The City will Conduct All Municipal Operations in an Efficient Business -Like Manner"; and further finds that the adoption of this resolution is 'not inconsistent or in conflict with any other Century Plan Policies, as required by Section 2.03 of the Administrative Chapter of the Policy Plan. Pit ATTEST: Elizabeth Gray City Secretary R*11*� �98 r Marianne Landers Banks City Attorney Investment Resolution No. 3Q91/4—(� Page 1 of 1 THE CITY OF GEORGET170N: By: LEO W Mayor a CITY OF GEORGETOWN, TEXAS INVESTMENT POLICY September 14, 1993 Scol2e: This investment policy applies to all financial assets of the City of Georgetown, Texas, held in all funds. Statement of Cash Management Philosoo.hv: The City of Georgetown shall maintain a comprehensive cash management program to include the effective collection of all accounts receivable, the prompt deposit of receipts to the City's bank accounts, the payment of obligations 'so as to comply with state law and in accord with vendor invoices, and the prudent investment of idle funds in accord with this policy. Obiectives: The City's investment program shall be conducted so as to accomplish the following objectives, listed in priority order- 2. Availability of sufficient cash to pay obligations of the City wher they are due; and 3. Investment of idle cash at the highest possible rate of return, consistent with state and local laws and the two objectives listed above. Delegation of AuthgfLty-. The Director of Finance and Administration, as the City's chief financial officer, is responsible for overall management of the City's investment program and is designated as the City's Investment Officer. Accordingly, the Director of Finance and Administration is responsible for day-to-day administration of the investment program and for the duties listed below: 1 Maintain current information as to available cash balances in City accounts, and as to the amount of idle cash available for investment, Standard of Care: Investments shall be made with judgment and care , und(M circumstances then prevailing, that persons of prudence, discretion, and intelligencQ exercise in the management of their own affairs, not for speculation, but f I investment, considering the probable safety of their capital as well as the proba b income to be derived. The City Council recognizes that in maintaining a diversifi portfolio occasional measured losses due to market volatility are inevitable and mu be considered within the context of the overall portfolio's investment return, provid that adequate diversification has been implemented. Authorized Investments: City of Georgetown funds may be invested in the followi investments, listed in priority order: I 1 Certificates of Deposit issued by the City's Depository/Depositories having an interest rate exceeding the if yield" of U.S. Treasury bills, notes or bonds for a similar maturity at the time of issue. Treasury bills, notes or bonds which are guaranteed as to principal and interest by the full faith and credit of the United States of America. 3. Local Government Investment Fund for Texas (no more than twenty percent of portfolio). 4. Texas Local Government Investment Pool ("TexPool") managed by the Texas Treasury Department. 5. Other investments as approved by the City Council and not prohibited by law. Cash resources required for the immediate needs of the City and not otherwi,4F-9 available for longer term investment shall be placed in checking account(s) at t City's Depository/ Depositories. Such checking account(s) shall earn interest at t highest rate(s) provided in the respective depository contract(s). I Qualifying InstitutioLis: Authorized investments other than Certificates of Deposil to the Market Reports Division of the Federal Reserve Bank of New York or approved by the City Council and authorized by law. )IC ESMOMPRE. a M41 V. ma$ &Z. M- 2-0- lime GM 111TA'sTeMPF.il sisMial 0 --- - - - - ---- 11 111 L!I11;1jj1l1r4 149, City of Georgetown Investment Policy 9/93 Page 2 of 4 Securities pledged as collateral must be retained in a third party bank in the State• Texas and the City shall be provided the original safekeeping receipt on each pledg security. As soon as practical, but no later than October 1, 1990, and subject to t agreement of the City's present Depositories if before that date, the City, financi institution, and the safekeeping bank(s) shall operate in accordance with a mast safekeeping agreement signed by each of the parties. The City's Investment Officer must approve in writing the release of collateral pri(I to its removal from the safekeeping account in accordance with the terms depository agreement. I The financial institution(s) with which the city invests and/or maintains deposits sh a6Zr,wmX4e prices. The listing shall include total pledged securities itemized by - 0 name, type and description of the security-, e maturity date,, if available; and 916M.1117.116M Selection of Depository- The City's Depository/Depositories shall be selected everM M two years, unless otherwise provided by law. 0 Diversification of Investments: It is the policy of the City of Georgetown to diversify its investments to eliminate the risk of loss resulting from overconcentration of assets in a specific maturity, a specific issuer or a specific class of securities. The following general constraints shall apply- maturities shall be staggered to avoid undue concentration of assets in a specific maturity sector and maturities selected shall provide for stability of income and reasonable liquidity. General Investment Practices: All investment transactions shall be documented by the Investment Officer. The Investment Officer may make investments orally, but shall follow promptly with a written confirmation to the financial institution or broker/ dealer, with a copy of such confirmation retained in the City's files. City of Georgetown Investment Policy 9/93 Page 3 of 4 11 the Investment Officer shall take competitive bids. At least three ('131, two quotations shall be taken for each such investment made. Annual Reporl: Within 60 days following the end of the fiscal year, the Investment Officer shall present to the City Council a comprehensive annual report on the investment program and investment activity. The annual report shall include a review of the activities and return for the twelve months, suggest policies and improvements that • enhance the investment program, and •_ an investment plan for the • fiscal year. City of Georgetown Investment Policy 9/93 Page 4 of 4