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HomeMy WebLinkAboutRES 900365 - City Invenstment PolicyRESOLUTION NO. A RESOLUTION APPROVING AND AUTHORIZING TEE IMPLEMENTATION OF THE CITY OF GEORGETOWN INVESTMENT POLICY; WHEREAS, the goal of the City of Georgetown is to create an investment policy to ensure the safety of all funds entrusted to the City, while making available those funds for the payment of all necessary obligations of the City and providing for the investment of all funds not immediately required in interest bearing securities; and WHEREAS, the Public Funds investment Act of 1981 requires that the City have written policies governing its investments approved by its City Council; and WHEREAS; the City Council of the City of Georgetown wishes to amend its investment policy las last amended on June 26, 1990) to include as an authorized investment 100% of its portfolio in TexPool, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Georgetown, Texas, that the attached document shall be the current Investment- Policy of the City of Georgetown, providing primarily to ensure the safety of all funds entrusted to the City while providing availability of sufficient cash to pay obligations of the City when they are due and for the investment of idle cash at the highest tate of return consistent with state and local laws. PASSED,' ADOPTED AND APPROVED this 19th day of August , 1990. APPROVED: W: H. Connor, Mayor City of Georgetown ATTEST: Elizabeth Gray City Secretary APPROVED AS TO FORM: Marianne Landers Banks City Attorney CITY OF GEORGETOWN, TEXAS INVESTMENT POLICY August 14; 1990 Scope: This investment policy applies to all financial assets of the City of Georgetown, Texas, held in all funds. Statement of Cash Management Philosophy: 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: Objectives: The City's investment program shall be conducted so as to accomplish the following objectives, listed in priority order: 1, Safety of the principal invested.; 2. Availability of sufficient cash to pay obligations of the City when 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 Authority; 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; 2. Make investments in accord with this policy; 3. Ensure that all investments are adequately secured. Standard of Care: Investments shall be made with judgment and care, under circumstances then prevailing, that 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 probable income to be derived. The City Council recognises that in maintaining a diversified, portfolio occasional measured losses due to market volatility are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. Authorized Investments: City of Georgetown funds may be invested in the following investments, listed in priority order: 1, Certificates of Deposit 'issued by the City's Depository/Depositories having an interest rate exceeding the yield" of U. S. Treasury bills, notes or bonds for a similar maturity at the time of issue, 2, U;S, 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, Local Government Investment Fund for Texas (no more than twenty percent of portfolio: 9. Texas Local Government Investment Pool ("Tex - Pool") -managed by the "Texas Treasury Department. S, Other investments as approved bythe City Council and not prohibited by law, Cash resources required for the immediate needs of the City and not otherwise available for longer term investment shall be placed in checking accounts) at the City's Depository/ Depositories, Such checking account(s) shall earn interest at the highest ratejs) provided in the respective depository contract�sj, Qualifying Institutions: Authorized investments other than Certificates of Deposits may be purchased through primary government security dealers reporting to the Market Reports Division of the Federal Reserve Bank of New York or as approved by the City Council and authorized by law, Collateralization and Safekeeping for Deposits at Depositary:The City of Georgetown will accept as collateral for its certificates of deposit and other evidence ofdeposit securities as required by State law and its agreement(s) with DepositorylDepositories Securities pledged as collateral must :be retained in a third party bank in the State of Texas and the City shall be provided: the original safekeeping receipt on each pledged security, As soon as practical, but no later than October 1, 1990 and subject to the agreement of the City's present Depositories if before that date, the City, financial institution, and the safekeeping bank(s) shall operate in accordance with amaster safekeeping agreement signed by each of the parties. The City's Investment Officer must approve in writing the release of collateral prior to its removal from the safekeeping account in accordance with the terms of: depository agreement, The financial institutions{ with which the city invests and/or maintains deposits shall provide monthly a listing of the collateral pledged to the City marked to current market prices. The listing shall include total pledged securities itemized by: name, type and >description rof the security; safekeeping receipt number; par value; current market value; maturity date; if available; and Moody's or Standard 6 Poor's rating, if available Selection of Depository. The City's Depository/Depositories shall be selected every two years, unless otherwise provided by law, Diversification of Investments: Itis the policy of the City of Georgetown to diversify its investments to eliminate the risk of loss resulting fromoverconcentration 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, On investments which do not fall under provisions of the City's depository agreement, the Investment' Officer shall take competitive bids, At least three (3) quotations shall be taken for each such investment made, Annual Report: 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 thetwelve months, suggest policies and improvements that might enhance the investment program, and include an investment plan for the ensuing fiscal year.