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HomeMy WebLinkAboutRES 941122-L - Amend City Investment PolicyRESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AMENDING THE EXISTING CITY OF GE ORGETOWN INVESTMENT POLICY EFFECTIVE, NOVEMBER 22, 1994. WHEREAS, the goal of the City of Georgetown is to implement an investment policy that utilizes all current municipal investment practices, while ensuring the safety and availability of all funds entrusted to the City; and WHEREAS, the City Council of the City of Georgetown wishes to amend its Investment Policy (as last amended September 22, 1993), to include the purchase of U. S. Government Agency Securities; and WHEREAS, the City may invest in various governmental investment pools and other comparable investments meeting specified criteria as determined within the Investment Policy; and WHEREAS, the Investment Policy will require secondary authorization for all investment purchases that exceed 24 months; and 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 hereby found and declared to be true and correct, and are incorporated by reference herein 'In 'e ti 0 T rein a expressly made a part hereof `as if copied verbatim, The City Council hereby finds that t resolution implements Finance Policy I of the Century Plan - Policy Plan Element which statje "The City will Conduct All Municipal Operations in an Efficient Business -Like Manner"; a further finds that the adoption of this resolution is not inconsistent or in conflict with any otb Century Plan Policies., as required by Section 2.03 of the Administrative Chapter of Poll the Plan. Investment Resolution No. Page 1 of 2 ��Ill ORION I'll Ili I I ININ 1 11 11 1�1 Im�� I - N44grigriorl",welm zATTE Sandra Lee APPROVED AS TO FORM: Marianne Landers Banks City Attorney Investment Resolution No. 92 /,ZZ - L Page 2 of 2 THE CITY OF GEORGETOWN: By: LEO WOOD Mayor CITY OF GEORGETOWN, TEXAS INVESTMENT POLICY November 22, 1994 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. Obiectives: The City's investment program shall be conducted so as to accomplish the following objectives, listed in priority order: 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; Z 0 T VC F11 F T I eM-a ff 1. - C a r e_,'JF r Tler - GV G t F I' prevailing, that persons of prudence, discretion, and intelligence exercise in themanagement their own affairs, not for speculation, but for investment, considering the probable s7afety of th capital as well as the probable income to be derived. The City Council recognizes Ithat Ity maintaining a diversified portfolio occasional measured losses due to market volatility a - inevitable and must be considered within the context of the overall portfolio's investment retu provided that adequate diversification has been implemented. Authorized Investments: City of Georgetown funds may be invested in the following investments: -r;- --f—Wity order: 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. Tre__a�wy-841s, Notes or Bond-& Securities issued by the United States Treasury or its IN) which are guaranteed as to principal and interest by the full faith and credit of the United States of America. H W -WO -Ow igag-­ . . 6 0 0 KE�, N Cash resources required for the immediate needs of the City and not otherwise available TAI -9 longer term investment shall be placed in checking account(s) at the City's Deposito Depositories. Such checking account(s) shall earn interest at the highest rate(s) provided in t respective depository contract(s). QualLNing Institutions'. Authorized investments other than Certificates of Deposits may purchased through primary or secondary government security dealers reporting to the Mark Reports Division of the Federal Reserve Bank of New York or as approved by the City Coun I and authorized by law. Collateralizatiox 2xd S,2fekee ce TXe City vfl- togettviA will,2c as collateral for its certificates of deposit and other evidence of deposit securities as required State law and its agreement(s) with Depository/Depositories. Securities pledged as collateral must be retained in a third party bank in the State of Texas an the City shall be provided the original safekeeping receipt on each pledged security. As soon I City of Georgetown Investment Policy 11/94 Page 2 of 3 The financial institution(s) 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. ME= current market value; 0 maturity date, if available, arM,,. Moody's or Standard & Poors 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: 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 i 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 two (2) quotations shall be taken for each such Investment made. Annual Report: Within 60 days following the end of the fiscal year, the Investment Officer sh present to the City Council a comprehensive annual report on the investment program a investment activity. The annual report shall include a review of the activities and return for t and include an investment plan for the ensuing fiscal year. City of Georgetown Investment Policy 11/94 Page 3 of 3