HomeMy WebLinkAboutAgenda CC 01.22.2013 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
JANUARY 22, 2013
The Georgetown City Council will meet on JANUARY 22, 2013 at 3:00 P.M. at the Council Chambers at
101 E. 7th Street, Georgetown, Texas
If you need accommodations for a disability, please notify the city in advance.
Policy Development/Review Workshop -
A Annual review of proposed changes to the City’s investment policy -- Susan Morgan, Finance Director
and Micki Rundell, Chief Financial Officer
B Presentation and discussion on statewide cable franchise, PEG (public, education, government)
channels, and the GTV and Video Programming Plan -- Paul E. Brandenburg, City Manager and Keith
Hutchinson, Public Communications Manager
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the regular
session.
C Sec. 551.071: Consultation with Attorney
- Advice from attorney about pending or contemplated litigation and other matters on which the attorney
has a duty to advise the City Council, including agenda items
- LCRA Update
- Airport Tenants
- Rivery Development
- GenTex Contract Discussion
D Sec. 551.072: Deliberation about Real Property
- 1460 Inner Loop Right of Way
- Albertson's Building
E Sec 551.074: Personnel Matters
- Acting City Attorney, Bridget Chapman
F Sec. 551.086: Competitive Matters
- Electric Rate Review
Adjournment
Certificate of Posting
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of
Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all
times, on the _____ day of _________________, 2012, at __________, and remained so posted for at least
72 continuous hours preceding the scheduled time of said meeting.
__________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
January 22, 2013
SUBJECT:
Annual review of proposed changes to the City’s investment policy -- Susan Morgan, Finance Director and
Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
The City’s financial investments are guided by the City’s investment policy, which was created in
compliance with Chapter 2256 of the Texas Government Code. This state law requires that a governing body
review its investment policy annually. The City’s policy was last reviewed on January 24, 2012.
The proposed changes to the policy are summarized in the attached memo.
The proposed policy changes have been reviewed with the General Government and Finance Advisory
(GGAF) Subcommittee with any suggestions included in the final proposal.
COMMENTS
The City’s investment advisor, Susan Anderson, with Valley View Consulting, will be available, along with
staff, to answer questions regarding public funds investing.
FINANCIAL IMPACT:
A overview presentation of the City's investment policy will be provided at the workshop.
SUBMITTED BY:
ATTACHMENTS:
Memo
Investment Policy Redline
Chapter 2256 Texas Government Code
Cover Memo
Item # A
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Page 1 of 2
M E M O R A N D U M
DATE: January 14, 2013
TO: Mayor & Council
Paul Brandenburg, City Manager
Micki Rundell, Chief Financial Officer
FROM: Susan Morgan, CPA, Finance Director
SUBJECT: Proposed Updates to City of Georgetown Investment Policy
ATTACHMENTS: Redline version of the City of Georgetown Investment Policy
The City’s investments are guided by the City’s investment policy, which was created pursuant to
Chapter 2256 of the Texas Government Code, known as the Public Funds Investment Act (PFIA).
The law requires the governing body of local governments to review the policy annually. City staff
and its investment advisory firm, Valley View Consulting, L.L.C., have reviewed the current policy
and made recommended changes to enahnce the policy and make minor language clarifications.
There has been no state legislative changes since last year’s review.
These proposed changes were reviewed with the GGAF on January 9, 2013 with no modifications
suggested by the committee. The policy and proposed changes will be reviewed during workshop
at the January 22, 2013 Georgetown City Council Meeting.
A summary of the changes proposed is outlined below.
Section 1.3 Objectives
Minor wording clarification.
Section 2.1 Prudence
Minor wording clarification.
Section 4.1.6 Municipal Issuers (new section)
This section is added to allow the City to purchase obligations of the State or Texas or political
subdivisions in Texas (no out of state entities) rated “A” or better. This investment is allowable
under PFIA and would give the city an additional investment tool if the opportunity arises. We
expect that only limited investments in Texas municipal bond obligations will be available, but it will
allow a safe alternative for the City’s funds.
Attachment number 1 \nPage 1 of 2
Item # A
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Page 2 of 2
Section 5.1 Authorized Brokers/Dealers and Investment Policy Certification
Minor wording clarification.
Section 5.5 Collateralization
The first part of this section is enhanced to clearly give the City authority ask for additional
collateral should the financial institution fail to maintain the 102% standard.
The second section is a wording clarification to clear up duplicative language and more accurately
reflect the requirements and practices by financial institutions under the Financial Institutions
Reform, Recovery and Enforcement Act (FIRREA.) It does not change the actual requirements or
practices currently observed by the City or the financial institutions we do business with.
Attachment “A” Approved Broker/Dealer List
Morgan Keegan’s merger with Raymond James that became official in 2012; therefore, a minor
update is needed.
Upcoming Legislative Changes
Neither staff nor the City’s investment advisors are aware of any major legislative changes for
investments being proposed for the upcoming Texas legislative session. We do expect some
minor updates to the PFIA and the Public Funds Collateral Act to keep those current with federal
law. We will monitor any changes that occur and include them in next year’s update as needed.
Attachment number 1 \nPage 2 of 2
Item # A
City of Georgetown Investment Policy Page 1
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CITY OF GEORGETOWN, TEXAS
INVESTMENT POLICY
As amended January 22, 2013
SECTION 1: SCOPE & OBJECTIVES
1.1 SCOPE
This Investment Policy applies to all financial assets of the City of Georgetown, Texas, which
includes the City of Georgetown Economic Development Corporation and the Georgetown
Transportation Enhancement Corporation, held in all funds.
1.2 STATEMENT OF CASH MANAGEMENT PHILOSOPHY
The City will 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 to comply with State law and in accord with vendor invoices, and the
prudent investment of idle funds in accord with this Policy.
1.3 OBJECTIVES
The City's investment program will be conducted to accomplish the following objectives, listed in
priority order:
1. Safety. The City will give priority to the preservation and safety of the principal
invested. Investments will be made in a manner that will mitigate credit risk and
interest rate risk.
2. Liquidity. The City will maintain the availability of sufficient cash to pay
obligations of the City when they are due.
3. Public Trust. Investment Officers shall seek to act responsibly as custodians of
the public trust. Investment Officers shall avoid transactions that might impair
public confidence in the City’s ability to govern effectively.
4 Yield. The City will invest idle cash in a manner that will maximize earnings to
the greatest extent possible, consistent with State and local laws and the
objectives of safety and liquidity listed above.
It is also the objective of the City to diversify its investments to eliminate the risk of loss resulting
from over concentration of assets in a specific maturity, a specific issuer or a specific class of
investments, when appropriate. It is the intent of the City to hold investments to maturity.
SECTION 2: STANDARD OF CARE
2.1 PRUDENCE
Investments will 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
and the probable income to be derived. The City Council recognizes 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.
Attachment number 2 \nPage 1 of 10
Item # A
City of Georgetown Investment Policy Page 2
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In determining whether an Investment Officer has exercised prudence with respect to an
investment decision, the determination shall be made taking into consideration:
A. The investment of all funds, or funds under the City’s control, over which the Officer had
responsibility rather than a consideration as to the prudence of a single investment.
B. Whether the investment decision was consistent with the written Investment Policy of the
City.
The Investment Officer, acting in accordance with written procedures and exercising due
diligence, shall not be held personally responsible for a specific investment's adverse credit risk
or market price changes, provided that these deviations are reported immediately to the City
Manager and/or the Council and that appropriate action is taken to control adverse
developments.
2.2 ETHICS & CONFLICT OF INTEREST
Investment Officers and employees involved in the investment process will refrain from personal
business activity that could conflict with the proper execution of the investment program, or
which could impair their ability to make impartial investment decisions. Investment Officers and
employees will comply with all disclosure and reporting requirements of Section 2256.005 (I) of
the Texas Government Code.
2.3 DELEGATION OF AUTHORITY
The Chief Financial Officer, Finance Director and Controller are the City's Investment Officers.
The Chief Financial Officer is responsible for overall management of the City's investment
program and may direct the other Investment Officers in their duties. Accordingly, the
Investment Officers are 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 and maintain written procedures for the operation and internal
control of the investment program consistent with this Policy;
3. Ensure that all investments are adequately secured; and
4. Attend training as required by Section 2256.008 (a) of the Texas Government
Code and ensure that any staff executing transactions covered by this Policy
attend the required training. The investment training shall be attended not less
than once in a two-year period that begins on the first day of the City’s fiscal year
and consists of the two consecutive fiscal years after that date and receive not
less than 10 hours of instruction relating to investment responsibilities under this
Policy. The training must be sponsored by:
Texas Municipal League
Government Finance Officers Association of Texas (GFOAT)
Government Finance Officers Association of US and Canada
Government Treasurers Organization of Texas (GTOT)
University of North Texas
Texas Tech University Center for Professional Development
Attachment number 2 \nPage 2 of 10
Item # A
City of Georgetown Investment Policy Page 3
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Unless authorized by State or local laws as provided above, no person may deposit, withdraw,
transfer or manage in any other manner the funds of the City.
SECTION 3: INVESTMENT STRATEGIES
3.1 OPERATING FUNDS
Operating Funds are defined as cash and investments used for day to day operations that do
not fall into one of the other categories. Operating funds will be invested in a manner suitable
for funds requiring a high degree of liquidity. Investments of Operating Funds shall be limited to
a weighted average maturity no greater than one year, and all investment instruments must
meet credit and safety criteria as required by the Public Funds Investment Act and this Policy.
Involuntary liquidation of Operating Fund investments is unlikely due to their short term nature.
However, should a liquidation of investments prior to maturity be necessary, their short term
nature will make material losses unlikely. Operating Fund investments will be diverse and may
include financial institution deposits, U.S. treasuries and agencies, investment pools, and
money market mutual funds. Investment of Operating Funds will be structured to attain the
highest possible yield given the liquidity and safety requirements.
3.2 CONTINGENCY RESERVES (or operating reserves)
Contingency Reserves are the minimum fund balance/working capital requirements as defined
by Council in the Annual Operating Plan. Contingency Reserve balances may be used to cover
any cash operating shortfalls due to the timing of bond issues, revenue receipts, etc.
Investments of these funds may exceed 24 months with prior approval of the City Manager if
short term cash flow needs are not evident. Any one investment may not exceed 36 months in
maturity length. The weighted average maturity for these funds may not exceed 24 months.
Involuntary liquidation of Contingency Reserve investments is unlikely due to their nature.
However, should a liquidation of investments prior to maturity be necessary, the comparatively
longer term nature of some of the investments could result in material losses depending on
financial and economic conditions. Contingency Reserve investments will be diverse and may
include financial institution deposits, U.S. treasuries and agencies, investment pools, and
money market mutual funds. Investment of Contingency Reserves will be structured to attain
the highest possible yield given the liquidity and safety requirements.
3.3 DEBT
3.3.1 Reserves. Debt reserves are defined as bond reserve funds required to be set
aside in accordance with bond covenants. The City’s bond covenants do not require the
City to maintain any reserve funds. Therefore, the City’s investments are not adversely
affected by any reserve requirement conditions.
3.3.2 Interest & Sinking (or debt service funds). Interest and sinking funds are
defined as those funds accumulated to meet periodic payments required by bond and
note maturity schedules. The investment maturities are limited by pertinent debt service
requirements and tax laws limiting accumulation and earnings for such funds.
Involuntary liquidation of investments is highly unlikely due to the nature of these funds.
Interest and sinking fund investments will be diverse and may include financial institution
deposits, U.S. treasuries and agencies, investment pools, and money market mutual
funds.
3.4 BOND PROCEEDS (capital improvement funds)
Attachment number 2 \nPage 3 of 10
Item # A
City of Georgetown Investment Policy Page 4
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Bond proceed funds are defined as those funds received from the sales of City bonds or notes
and not otherwise set aside for debt service or reserve purposes. These funds typically include
money to fund infrastructure construction or other large projects. The investment maturities are
limited by pertinent project draw requirements and tax laws governing earnings for such funds,
but may not have a weighted average maturity in excess of one year, with no single security
greater than 24 months, unless a flexible repurchase agreement is used in accordance with
Section 4.1.5 of this Policy. Involuntary liquidation of investment is highly unlikely. Bond
proceed investments will be diverse and may include financial institution deposits, U.S.
treasuries and agencies, investment pools, and money market mutual funds.
SECTION 4: AUTHORIZED INVESTMENTS
4.1 ALLOWABLE INVESTMENTS
City funds may be invested in the following instruments:
4.1.1 Financial Institution Deposits. Certificates of Deposit and other evidences of deposit at
a financial institution that, a) has its main office or a branch office in Texas and is guaranteed or
insured by the Federal Deposit Insurance Corporation or its successor, b) is secured by
obligations in a manner and amount provided by law for deposits of the City, or c) is executed
through a depository institution or approved broker that has its main office or a branch office in
Texas that meets the requirements of the Public Funds Investment Act. All financial institution
deposits in excess of the FDIC insured amount must be collateralized as described by Section
5.5 COLLATERALIZATION.
4.1.2 U.S. Treasuries and Agencies. Obligations of the United States of America, its agencies
and instrumentalities.
4.1.3 Investment Pools. Investment pools that meet the following criteria:
a. An investment pool must provide an offering circular or other similar disclosure
instruments and provide monthly and transaction reporting as required by
Section 2256.016 of the Texas Government Code.
b. Investment in a new pool will require the approval of the City Council.
c. A public funds investment pool created to function as a money market mutual
fund must (1) mark its portfolio to market daily, (2) include in its investment
objectives the maintenance of a stable net asset value of $1 for each share and
(3) be continuously rated no lower than AAAm or at an equivalent rating by at
least one nationally recognized rating service.
4.1.4. Money Market Mutual Funds. No-load money market mutual funds if the fund:
a. Is regulated by the Securities and Exchange Commission;
b. Marks its portfolio to market daily;
c. Includes in its investment objectives the maintenance of a stable net asset value
of $1 for each share;
d. Is continuously rated no lower than AAA or at an equivalent rating by at least one
nationally recognized rating service.
4.1.5. Repurchase Agreements. Fully collateralized repurchase agreements that:
a. Have a defined termination date;
b. Are secured by cash or obligations as allowed by the Public Funds Investment
Act and this Policy;
Attachment number 2 \nPage 4 of 10
Item # A
City of Georgetown Investment Policy Page 5
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c. Require independent third party safekeeping of all securities prior to the release
of any funds;
d. Are placed through a primary dealer or financial institution doing business in this
State; and
e. Do not create a reverse repurchase agreement by the City.
f. Construction, capital improvement and bond proceed funds may utilize a flexible
repurchase agreement, or similar agreement, that allows expenditure-related
withdrawal of funds, without penalty, with an average life and termination date
limitation based on the anticipated draw schedule.
4.1.6. Municipal Issuers. Obligations of:
a. This State and its agencies or instrumentalities; and
b. Counties, cities, and other political subdivisions of the State of Texas rated as to
investment quality by a nationally recognized investment rating firm not less than
A or its equivalent.
4.1.7. Other Investments. Other investments as approved by the City Council and not
prohibited by law.
Investment securities purchased prior to this Policy’s revision, that do not meet the revised
requirements of this Policy, are not required to be liquidated. The City shall monitor each
security’s status to determine whether it is in the best interest of the City to hold or liquidate the
security.
4.2 CREDIT RATING REVIEW AND EFFECT OF LOSS OF REQUIRED RATING
Not less than quarterly, the Investment Officers will obtain from a reliable source the current
credit rating for each held investment that has a PFIA-required minimum rating. Any Authorized
Investment that requires a minimum rating and does not qualify at any time during the period, is
considered to not have the minimum rating. The City shall take all prudent measures that are
consistent with this Policy to liquidate an investment that does not have the minimum rating.
4.3 COMPLIANCE WITH STATE LAW
All authorized investments outlined above must meet the requirements of the Public Funds
Investment Act, Section 2256 of the Texas Government Code. No investment may be made in
any instrument except as provided above.
4.4 CASH ON HAND
Cash resources required for the immediate needs of the City and not otherwise available for
longer term investment will be placed in account(s) at the City's Depository/ Depositories. Such
account(s) will earn interest at the highest rate(s) provided in the respective depository
contract(s).
4.5 LENGTH OF INVESTMENTS
The following general constraints will apply. Maturities exceeding 36 months will require
authorization by the City Manager, with no single maturity greater than 60 months. Maturities
will be staggered to avoid undue concentration of assets in a specific maturity sector and
maturities selected will provide for stability of income and reasonable liquidity.
Attachment number 2 \nPage 5 of 10
Item # A
City of Georgetown Investment Policy Page 6
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Attachment number 2 \nPage 6 of 10
Item # A
City of Georgetown Investment Policy Page 7
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SECTION 5: SAFEKEEPING AND CUSTODY
5.1 AUTHORIZED BROKER/DEALERS and INVESTMENT POLICY CERTIFICATION
Authorized investment securities may be purchased only through brokers/dealers who are
licensed and in good standing with the Texas Department of Securities, the Securities
Exchange Commission, the Financial Industry Regulatory Authority, or other applicable self-
regulatory organization. The Investment Officers will maintain a list of broker/dealers who are
authorized to provide investment services. The list is approved and included in Attachment “A”
of this Policy.
Before engaging in investment transactions with a financial institution, broker/dealer, Investment
Pool, or Money Market Mutual Fund, the Investment Officers will have received from said firm a
signed Certification Form. This form will attest that the individual responsible for the City’s
account with that firm has received and reviewed the City’s Investment Policy and that the firm
has implemented reasonable procedures and controls in an effort to preclude imprudent
activities arising out of investment transactions conducted between the City and the firm. The
letter must be signed by a qualified representative as defined by Section 2256.002, of the Texas
Government Code.
“Qualified Representative” means a person who holds a position with a business organization
who is authorized to act on behalf of the business organization and who is one of the following:
(1) a business organization doing business that is regulated by or registered with a securities
commission, a person who is registered under the rules of the Financial Industry Regulatory
Authority;
(2) for a state or federal bank, a savings bank or state or federal credit union, a member of the
loan committee for the bank or branch of the bank or a person authorized by corporate
resolution to act on behalf of and bind the banking institution;
(3) for an investment pool, the person authorized by the elected official or board with authority to
administer the activities of the investment pool to sign the written instrument on behalf of the
investment pool, or
(4) for an investment management firm registered under the Investment Advisers Act of 1940 or,
if not subject of registration under the Act, registered with the State Securities Board, a person
who is an officer or principal of the investment management firm.
5.2 AUTHORIZED FINANCIAL INSTITUTIONS
Financial institution deposits and other evidences of deposit may be purchased at qualified City
Depositories and other financial institutions. Qualifications will be determined by the Investment
Officers. The City must have a written agreement with the Depository and other financial
institutions, and that depository and other financial institutions must meet all State Laws for
deposit of public funds. The City's main operating Depository/Depositories will be selected as
provided by law and the City’s purchasing procedure.
5.3 INTERNAL CONTROLS
All investment transactions will be documented by the Investment Officers. The Investment
Officers may make investments orally, but will 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.
Attachment number 2 \nPage 7 of 10
Item # A
City of Georgetown Investment Policy Page 8
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On investments, the Investment Officers will solicit competitive quotes. Where appropriate, at
least two (2) quotations will be solicited for each such investment made.
Market value of the portfolio and each investment will be monitored at least quarterly through
industry standard publications/sources for market data such as, but not limited to, The Wall
Street Journal. Market value may also be determined through the City’s investment software
application, which uses industry standard publications/sources for its market data.
5.4 SAFEKEEPING
All securities purchased by the City under this Policy must be designated as assets of the City,
must be conducted on a delivery-versus-payment (DVP) basis, and must be protected through
the use of a third-party custody/safekeeping agent. The City will enter into a formal agreement
with an institution of such size and expertise as is necessary to provide the services needed to
protect and secure the investment assets of the City.
5.5 COLLATERALIZATION
To the extent not insured by federal agencies that secure deposits, City funds (including
financial institution deposits and C.D.’s) must be collateralized or enhanced in compliance with
the Texas Public Funds Collateral Act and pertinent federal banking regulations. With the
exception of deposits secured with irrevocable letters of credit at 100% of deposit plus accrued
interest, the aggregate market value of pledged securities shall be equal to at least one hundred
two percent (102%) of the of the deposit (including accrued interest) less an amount insured by
the Federal Deposit Insurance Corporation. Should the depository fail to adequately maintain
the required collateral level, the City may increase the minimum to 110%. The City reserves the
right, in its sole discretion, to accept or reject any form of insurance or collateralization pledged
towards depository deposits. Institutions serving as a depository will be required to sign a
Depository/Collateral Agreement with the City. The collateralized deposit portion of the
Agreement shall define the City’s rights to the collateral in case of default, bankruptcy, or closing
and shall establish a perfected security interest in compliance with Federal and State
regulations, including:
· The agreement must be in writing;
· The agreement has to be executed by the Depository and the City contemporaneously
with the acquisition of the asset;
· The agreement must be approved by the Board of Directors or designated committee of
the Depository and a copy of the meeting minutes must be delivered to the City; and
· The agreement must be part of the Depository’s “official record” continuously since its
execution.
Securities pledged as collateral must be retained in an independent third party bank and marked
as pledged to the City. The City will be provided the original safekeeping receipt on each
pledged security. With the exception of the Federal Reserve Bank, the City, financial institution,
and the safekeeping bank(s) will operate in accordance with a master safekeeping agreement.
The City's Investment Officers must approve in writing the release of collateral prior to its
removal from the safekeeping account in accordance with the terms of the depository
agreement.
The financial institution(s) with which the City invests and/or maintains deposits will require the
custodian to provide monthly a listing of the collateral pledged to the City marked to current
market prices. The listing will include total pledged securities itemized by name, CUSIP, type
and description of the security; safekeeping receipt number; par value; current market value;
maturity date; and Moody's or Standard & Poor's rating, if available.
Attachment number 2 \nPage 8 of 10
Item # A
City of Georgetown Investment Policy Page 9
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SECTION 6: REPORTING
6.1 QUARTERLY REPORTING
The Investment Officers shall prepare and submit to the Council a quarterly report on
investment transactions for all funds covered by this Policy. The report will be prepared in
compliance with the Public Funds Investment Act. The report will cover the investment position
of the City at the end of the each fiscal quarter. The contents will include at a minimum:
1. Beginning and ending market value of the portfolio;
2. Beginning and ending market value and book value, maturity date, type of
funds, interest coupon, accrued interest and yield for each separate
security; and
3. A statement as to the compliance with this Policy and State law.
6.2 ANNUAL REPORTING
Within 90 days following the end of the fiscal year, the Investment Officers will present to the
City Council a comprehensive annual report on the investment program and investment activity.
In addition to the information required for quarterly reporting, the annual report will include a
review of the activities and return for the twelve months, suggest Policy revisions and
improvements that might enhance the investment program, and include an investment plan for
the ensuing fiscal year.
6.3 PERFORMANCE STANDARDS
In order to evaluate portfolio performance of funds subject to this Policy, the City establishes
“weighted average yield to maturity” as the standard portfolio performance measurement. The
portfolio’s performance will be compared against appropriately competitive and reasonable
benchmarks, including money market mutual funds or investment pools of similar make-up and
maturities.
6.4 COMPLIANCE
The quarterly reports shall be formally reviewed and a compliance audit of management
controls and adherence to this Policy as it relates to the City’s investments and investing activity
will be performed on an annual basis in conjunction with the City’s annual financial audit. The
results shall be reported to the City Council.
SECTION 7: POLICY REVIEW AND AMENDMENTS
This Investment Policy will be reviewed by the City Council on at least an annual basis as
required by the Public Funds Investment Act and make amendments as necessary. The
Council will review the Policy as part of the annual investment report presented by staff.
Attachment number 2 \nPage 9 of 10
Item # A
City of Georgetown Investment Policy Page 10
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CITY OF GEORGETOWN INVESTMENT POLICY
Attachment “A”
Approved Broker/Dealer List
Bank of America/Merrill Lynch
UBS Paine Webber, Inc.
Duncan Williams
Rice Financial
Raymond James - Morgan Keegan
JPMorgan Chase Securities
Coastal Securities
These broker/dealers meet the City’s Investment Policy requirements.
Attachment number 2 \nPage 10 of 10
Item # A
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A
City of Georgetown, Texas
January 22, 2013
SUBJECT:
Presentation and discussion on statewide cable franchise, PEG (public, education, government) channels, and
the GTV and Video Programming Plan -- Paul E. Brandenburg, City Manager and Keith Hutchinson, Public
Communications Manager
ITEM SUMMARY:
On February 11, 2013, the City of Georgetown’s local cable franchise agreement with Suddenlink
Communications will expire. As directed by Senate Bill 5 passed by the Texas Legislature in 2006, the City
will transition to the statewide cable franchise agreement upon the expiration of the local franchise. The
statewide franchise provides funding to support an expanded public communications program.
Statewide cable franchise provisions include: 1) a franchise fee of 5 percent of gross revenues payable to the
city in which the franchisee operates, 2) a 1 percent PEG fee (in addition to the overall 5 percent) for capital
costs related to PEG channel operations, and 3) up to three PEG channels for a municipality with a
population of at least 50,000.
The City of Georgetown finance department has projected annual revenues from the 1 percent PEG fee of
approximately $140,000. The 1 percent PEG fee revenue can be used only for the purchase of capital items
related to cable operations, such as cameras, microphones, other video equipment, computers and software
used for video production, and studios or facilities for video production.
City staff is proposing a new media specialist position starting in January 2014 to create video news stories
and informational spots for GTV, City websites, and social media sites. Funding for the salary of the media
specialist position could be provided from increased 5 percent cable franchise revenue.
FINANCIAL IMPACT:
Projected 1 percent PEG fee revenue of approximately $140,000 for capital costs
Salary cost for media specialist
SUBMITTED BY:
Cover Memo
Item # B
City of Georgetown, Texas
January 22, 2013
SUBJECT:
Sec. 551.071: Consultation with Attorney
- Advice from attorney about pending or contemplated litigation and other matters on which the attorney has
a duty to advise the City Council, including agenda items
- LCRA Update
- Airport Tenants
- Rivery Development
- GenTex Contract Discussion
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Brettle, City Secretary
Cover Memo
Item # C
City of Georgetown, Texas
January 22, 2013
SUBJECT:
Sec. 551.072: Deliberation about Real Property
- 1460 Inner Loop Right of Way
- Albertson's Building
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Brettle, City Secretary
Cover Memo
Item # D
City of Georgetown, Texas
January 22, 2013
SUBJECT:
Sec 551.074: Personnel Matters
- Acting City Attorney, Bridget Chapman
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Brettle, City Secretary
Cover Memo
Item # E
City of Georgetown, Texas
January 22, 2013
SUBJECT:
Sec. 551.086: Competitive Matters
- Electric Rate Review
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Jessica Brettle, City Secretary
Cover Memo
Item # F