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Home My WebLink AboutRES 012412-OM x"'re"a"g "n "'mm 1z"MMA= I WHEREAS, the City Council of the City of Georgetown has reviewed the investment policy; and WHEREAS, the City Council of the City of Georgetown wishes to amend its Investment Policy (as last amended December 14, 2010); and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY M GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble • this resolution are here found and declared to be true and correct, and are incorporated • reference herein an expressly made a part hereof, as if copied verbatim. The enactment of this ordinance is n inconsistent or in conflict with any 2030 Plan Policies. SECTIOR 2. The Investment Policy attached as Exhibit "A" is hereby adopted by the Ci Council of the City of Georgetown, Texas. I = .. LOW a W.A% M OR Ma K Resolution Number: Olaq IQ-0 Page 1 of 1 Description: Investment Policy Date Approved: January 24, 2012 in��s'i 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. It is the intent of the City to invest its funds to maturity. KNEENIMMI City of Georgetown Investment Policy Page 1 L:\Division\finance\Share2\AGENDA\2012\MuniAgenda\January 24\lnvestment Policy 2012 01.24.12 FINAL.docx in determining whether an Investment Officer has exercised prudence with respect to investment decision, the determination shall be made taking into consideration: i 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 security'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. 0, �_111111411d. N, 11 �,t " ffll 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 (1) of the Texas Government Code. 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: 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 • 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 City of Georgetown Investment Policy Page 2 L:\Division\finance\Share2\AGENDA\2012\MuniAgenda\January 24\lnvestment Policy 2012 01.24. 12 FINAL.docx Unless authorized by State or local laws as provided above, no person may deposit, withdrall transfer • manage in any other manner the funds • the City. Bel, "21111111 W-1 � �,111111141:111 1. 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. M&V) 4V M Yk MA Lei O•—• 1jr-g-T--mvIALIPM. Ifiteg,11 City of Georgetown Investment Policy Page 3 L:\Division\finance\Share2\AGENDA\2012\MuniAgenda\January 24\lnvestment Policy 2012 0124.12 FINAL.docx 4.1.2 U.S. Treasuries and Agencies. Obligations • the United States • America, its agenci-" and instrumentalities. I 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. regulated • 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. City of Georgetown Investment Policy Page 4 L:\Division\finance\Share2\AGENDA\2012\MuniAgenda\January 24\lnvestment Policy 2012 01.24.12 FINAL.docx 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 expend iture-related withdrawal of funds, without penalty, with an average life and termination date limitation based on the anticipated draw schedule. 4.1.6. Other Investments. Other investments as approved by the City Council and no prohibited by law. I Investment securities purchased prior to this Policy's revision, that do not meet the reviseM lit requirements of this Policy, are not required to be liquidated. The City shall moni or eadj cecurity's status to determine whether it is in the best interest of the City to hold or liquidate t1l"M gecurity. M All authorized investments outlined above must meet the requirements of the Public Fun-,91� Investment Act, Section 2256 of the Texas Government Code. No investment may be made any instrument except as provided above. I 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). W- I - "My 110,121111 City of Georgetown Investment Policy L:\Division\finance\Share2\AGENDA\2012\MuniAgenda\January 24\investment Policy 2012 01.24.12 FINAL.doex City of Georgetown investment Policy Page 6 L:\ Division\ finance \Share2\AGENDA\2012 \MuniAgenda \January 24 \Investment Policy 2012 01.24.12 FINAL-docx * The agreement must be in writing; * The agreement has to be executed • 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, • a gal I City of Georgetown Investment Policy Page 7 L:1 Division\finance\Share2\AGENDA\2012\MuniAgenda\January 2MInvestment Policy 2012 01.24.12 FINAL.docx LOI E 11111-7dM I&TAW1 a 4 ar-KA11 a • Wei E I 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 • the compliance with this Policy and State law. 711thin •0 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. ME 121 I l 1W*11111 M-0190120 oi 111 City of Georgetown Investment Policy Page 8 L:\Division\finance\Share2\AGENDA\2012\MuniAgenda\January 24\lnvestment Policy 2012 01.24.12 FINAL.docx • O. j T I r Attachment "A" i Mu 'IF 17,113 City of Georgetown Investment Policy L:\Division\finance\Share2\AGENDA\2012\MuniAgendaiJanuary 24\lnvestment Policy 2012 01.24.12 FINAL.docx MW