HomeMy WebLinkAboutRES 121223-5.Z - Investment Policy 2023RESOLUTION NO. 1 V-3-5 Z
AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS, AMENDING THE EXISTING CITY OF
GEORGETOWN INVESTMENT POLICY EFFECTIVE DECEMBER
12, 2023; REPEALING CONFLICTING RESOLUTIONS; INCLUDING
A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE
DATE.
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 in compliance with federal, state and local laws; and
WHEREAS, the City Council of the City of Georgetown wishes to amend its Investment
Policy (as last amended December 13, 2022); and
WHEREAS, the City Council finds that amending the Investment Policy will be in the
best interest of the public, as set out herein.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GEORGETOWN, TEXAS:
Section 1. The meeting at which this resolution was approved was conducted in
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 2. 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 enactment of this resolution is not inconsistent or
in conflict with any 2030 Plan Policies.
Section 3. The Investment Policy attached hereto as Exhibit A is hereby adopted.
Section 4. All resolutions that conflict with the provisions of this resolution are hereby
repealed, and all other resolutions of the City not in conflict with the provisions of this resolution
shall remain in full force and effect.
Section 5. If any provision of this resolution, or application thereof, to any person or
circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or
application thereof, of this resolution, which can be given effect without the invalid provision or
application, and to this end the provisions of this resolution are hereby declared to be severable.
Section 6. The Mayor is hereby authorized to sign this resolution and the City Secretary to
attest. This resolution shall become effective and be in full force and effect immediately in
accordance with the provisions of the City Charter of the City of Georgetown.
PASSED AND APPROVED on the =of 2023.
Resolution Number: I-M-LI - 5. ` Page 1 of 2
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Date Approved: 01E,A, %,%M4 M Zbv
ATTEST:
OF GEORGETOWN:
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Robyn Densmore, City Secretary JqkV Schroeder,
APPROVED AS TO FORM:
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Skye asson, City Attorney
Resolution Number: 1Tk M 5' Page 2 of 2
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Date Approved: ateL*&Ioz(
CITY OF GEORGETOWN, TEXAS
INVESTMENT POLICY
As amended December 12, 2023
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 comply with Texas Government Code Chapter
2256 (the Public Funds Investment Act or "PFIA") and accomplish the following objectives, listed
in priority order:
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 optimize 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 prevailing circumstances, that a person
of prudence, discretion, and intelligence would exercise in the management of the person's own
affairs, not for speculation, but for investment, considering the probable safety of 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
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considered within the context of the overall portfolio's investment return, provided that adequate
diversification has been implemented.
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 Officers, 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 City 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 PFIA Section 2256.005
(i) which require the Investment Officers to file a disclosure statement with the Texas Ethics
Commission and the governing body if:
A. The officer has a personal business relationship with a business organization offering to
engage in an investment transaction with the City (as defined in 2256.005 (i)(1-3)); or
B. The officer is related within the second degree by affinity or consanguinity, as determined
under Chapter 573 of the Texas Government Code, to an individual seeking to transact
investment business with the entity.
2.3 DELEGATION OF AUTHORITY
The Finance Director, both Assistant Finance Directors, the Treasurer, and the Assistant
Treasurer are the City's Investment Officers. The Finance Director is responsible for overall
management of the City's investment program and may direct the other Investment Officers in
his/her 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 relating to investment responsibilities under this Policy as required
by Section 2256.008 of the PFIA. Ten (10) hours of investment training must be
completed within twelve (12) months of attaining the position of Investment Officer,
and thereafter, eight (8) hours of training must be completed within a two-year
period that begins on the first day of the City's fiscal year and consists of the two
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consecutive fiscal years after that date. To ensure quality and capability of
investment management, all Investment Officers shall receive training from an
independent source that addresses investment controls, security risks, strategy
risks, market risks, diversification of investment portfolios, and compliance with the
PFIA. The Training sponsored by any of the following organizations is approved:
Council of Governments
Texas Municipal League
Government Finance Officers Association of Texas (GFOAT)
Government Finance Officers Association of the United States and Canada
Government Treasurers' Organization of Texas (GTOT)
University of North Texas
Texas Tech University Center for Professional Development
Unless authorized by law, no person may deposit, withdraw, transfer, or manage in any other
manner the funds of the City.
SECTION 3: INVESTMENT STRATEGIES
In accordance with the Public Funds Investment Act, the City maintains general guidelines for
their various fund types regarding Suitability, Safety of Principal, Liquidity, Marketability,
Diversification and Yield. Each specific fund will stipulate the maximum maturity for that particular
fund.
Suitability: Any investment eligible in the Investment Policy is suitable for all fund types.
Safety of Principal: All investments shall be of high quality with no perceived default risk.
Market price fluctuations will occur, however by managing the weighted average days to
maturity for each fund type to a maximum allowable maturity appropriate for that fund, the price
volatility of the overall portfolio will be minimized.
Liquidity: All fund types require short-term liquidity. Short-term investment pools, bank
deposits, and eligible money market mutual funds shall provide daily liquidity and may be
utilized as a competitive yield alternative to fixed maturity investments.
Marketability: Securities with active and efficient secondary markets are necessary in the event
of an unanticipated cash requirement. Historical market "spreads" between the bid and offer
prices of a particular security -type of less than ten basis points shall define an efficient
secondary market.
Diversification: Investment maturities shall be staggered throughout the budget cycle to
provide cash flow based on the anticipated operating needs of the Authority. Market cycle risk
will be reduced by diversifying the appropriate maturity structure out over two years.
Yield: Attaining a competitive market yield for comparable security -types and portfolio
restrictions is the desired objective.
Specific Objectives of each fund and unique objectives of that fund are as follows
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 to
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provide adequate liquidity for the anticipated operating needs of the City. Investments of
Operating Funds shall be limited to a weighted average maturity no greater than one year and
any one investment may not exceed 36 months without authorization by the City Manager. All
investment instruments must meet credit and safety criteria as required by the PFIA and this
Policy. All investments shall be of high quality with no perceived default risk. Operating Funds will
remain sufficiently liquid to enable the City to meet operating requirements that may be reasonably
anticipated. If utilized, securities with active and efficient secondary markets are necessary in the
event of unanticipated cash requirements. Operating Funds' maturities will be staggered based
on the City's anticipated operating needs, and the investments may include financial institution
deposits, U.S. treasuries and agencies, state and municipal debt instruments, investment pools,
and money market mutual funds. Investment of Operating Funds will be structured to attain the
optimal 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
City Council in the Annual Operating Plan. Contingency Reserves' balances may be used to cover
any cash operating shortfalls due to the timing of bond issues, revenue receipts, etc. The funds
will be invested in a manner suitable to cover operating shortfalls that may be reasonably
anticipated. All investment instruments must meet credit and safety criteria as required by the
PFIA and this Policy. All investments shall be of high quality with no perceived default risk.
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. Contingency
Reserves investments will remain sufficiently liquid to meet City needs in the event of an operating
shortfall, and if utilized, securities with active and efficient secondary markets will provide
marketability necessary should the need arise to liquidate the investment prior to maturity.
Contingency Reserves' maturities will be diverse to cover possible operating shortfalls, and the
investments may include financial institution deposits, U.S. treasuries and agencies, state and
municipal debt instruments, investment pools, and money market mutual funds. Investment of
Contingency Reserves will be structured to attain the optimal 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, and
investments should be made in a manner suitable to comply with applicable requirements
and payment schedules. The investments must meet credit and safety criteria as required
by the PFIA and this Policy. All investments shall be of high quality with no perceived default
risk. The funds shall be invested to ensure adequate funding for each consecutive debt
service payment but shall not exceed the debt service schedule. Involuntary liquidation of
investments is highly unlikely due to the nature of these funds. Interest and Sinking fund
maturities will be diversified by matching them to the debt service payments of the City, and
the investments may include financial institution deposits, U.S. treasuries and agencies,
state and municipal debt instruments, investment pools, and money market mutual funds.
Investment of Interest and Sinking funds will be structured to attain the optimal yield given
the liquidity and safety requirements.
City of Georgetown Investment Policy Page
3.4 BOND PROCEEDS (capital improvement funds)
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, applicable bond covenants, and tax laws governing
earnings for such funds, but may not have a single security greater than 36 months, unless a
flexible repurchase agreement is used in accordance with Section 4.1.5 of this Policy. Investments
must meet credit and safety criteria as required by the PFIA and this Policy and should be made
in a manner suitable to meet project requirements. All investments shall be of high quality with no
perceived default risk. The funds shall be invested to match projected cash flow requirements with
sufficient liquidity to meet unanticipated project outlays, and maturities shall not exceed the
expected project completion dates. Bond proceed maturities will be diverse to provide necessary
liquidity based on project needs, and investments may include financial institution deposits,
flexible repurchase agreements, U.S. treasuries and agencies, state and municipal debt
instruments, investment pools, and money market mutual funds. Investment of Bond Proceeds
will be structured to attain the optimal yield given the liquidity and safety requirements.
SECTION 4: AUTHORIZED INVESTMENTS
4.1 AUTHORIZED INVESTMENTS
City funds may be invested in the following authorized investments:
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 or in any other 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
PFIA. 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, including other obligations, the principal and interest of
which are unconditionally guaranteed or insured by, or backed by the full faith and credit
of the United States or its agencies and instrumentalities, including obligations that are
fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit
full faith and credit of the United States. Such obligations include letters of credit of the
United States or its agencies and instrumentalities, including the Federal Home Loan
Banks.
4.1.3 Investment Pools. Investment pools that meet all requirements of the PFIA,
including 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 PFIA.
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 $1.00
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 government money market mutual funds
if the fund:
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a. Is compliant with the PFIA;
b. Is regulated by the Securities and Exchange Commission;
C. Marks its portfolio to market daily;
d. Includes in its investment objectives the maintenance of a stable netasset
value of $1.0000 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 PFIA and this
Policy;
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 Texas; and
e. Do not create a reverse repurchase agreement by the City.
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. Any repurchase agreement
shall require the execution of a mutually acceptable Repurchase Agreement.
4.1.6. Municipal Issuers. Obligations of:
a. The State of Texas or its agencies and 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.
Investments 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
investment's status to determine whether it is in the best interest of the City to hold or
liquidate the investment.
Prohibited Investments
This Policy bestows the authority upon the Investment Officers to determine certain investment
instruments as unsuitable for the City even though those investments may be authorized by this Policy
and/or the PFIA. Additionally, certain investments are expressly prohibited by the PFIA. Those
prohibited investments are:
a) Obligations whose payment represents the coupon payments on the outstanding principal
balance of the underlying mortgage -backed security collateral and pays no principal;
b) Obligations whose payment represents the principal stream of cash flow from the
underlying mortgage -backed security collateral and bears no interest;
c) Collateralized mortgage obligations (CMO) that have a stated final maturity date of greater
than 10 years; and
d) Collateralized mortgage obligations the interest rate of which is determined by an index
that adjusts opposite to the changes in a market index.
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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 PFIA. 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, in local
government investment pools and/or money market mutual funds. Such account(s) will earn
interest at the highest rate(s) provided in the respective depository contract(s).
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 State Securities Board, the Securities Exchange
Commission, the Financial Industry Regulatory Authority, or other applicable self -regulatory
organization. The City Council will, at least annually, review, revise, and adopt a list of
broker/dealers who are authorized to engage in investment transactions with the City. The list is
approved and included in Attachment "A" of this Policy.
Before engaging in investment transactions with an Investment Pool or discretionary investment
management firm, the Investment Officers will have received from said pool/firm a signed
Certification Form. This form will attest that the individual responsible for the City's account with
that pool/firm has received and reviewed the City's Investment Policy and that the pool/firm has
implemented reasonable procedures and controls to preclude transactions conducted between
the City and the pool/firm that are not authorized by the City's Investment Policy, except to the
extent that this authorization is dependent on an analysis of the makeup of the City's entire
portfolio, requires an interpretation of subjective investment standards, or relates to investment
transactions of the City that are not made through accounts or other contractual arrangements
over which the pool/firm has accepted discretionary investment authority. The letter must be
signed by a Qualified Representative as defined by the PFIA.
"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) 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
(2) for a discretionary 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.
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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
The Finance Director will establish and maintain procedures for the execution of the investment
program and these procedures will address internal controls to mitigate risks of intentional or
inadvertent mismanagement or misappropriation of funds.
All investment transactions will be documented by the Investment Officers. The Investment
Officers, or through the City's Investment Advisor, 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.
All trades, purchases, and sales, excluding cash equivalent transactions, will be completed
through a competitive process. Where appropriate, at least three (3) 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 or Bloomberg.
5.4 SAFEKEEPING
All securities purchased by the City under this Policy must be designated as assets of the City,
must be settled 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 CDs) must be collateralized 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
deposit plus 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 collateral pledged towards its 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 must 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
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The agreement must be part of the Depository's "official record" continuously since its
execution.
Securities pledged as collateral must be retained by an independent, third -party custodian and
marked as pledged to the City. The City will be provided the original safekeeping receipt from the
custodian on each pledged security. With the exception of the Federal Reserve Bank, the City,
financial institution, and the custodian will operate in accordance with an acceptable custodial
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 and/or
custodial 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.
SECTION 6: REPORTING
6.1 QUARTERLY REPORTING
The Investment Officers shall prepare, sign and submit to the City Council a quarterly report on
investment transactions for all funds covered by this Policy. The report will be prepared in
compliance with the PFIA. The report will cover the investment position of the City at the end of
each fiscal quarter. The contents will include at a minimum:
1. Beginning and ending market value and accrued interest of the portfolio;
2. Beginning and ending market value and book value, maturity date, type of funds,
interest coupon, 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 or the General Government and Finance Advisory Board 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. The annual report may be a component
of the quarterly report.
6.3 PERFORMANCE STANDARDS
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.
City of Georgetown Investment Policy Page
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 PFIA. The City Council shall adopt a written instrument by rule, order, ordinance, or
resolution stating that it has reviewed the investment policy and investment strategies and the
written instrument so adopted shall record any changes made to either the investment policy or
investment strategy.
City of Georgetown Investment Policy Page
CITY OF GEORGETOWN INVESTMENT POLICY
Attachment "A"
Approved Broker/Dealer List
FHN Financial
Hilltop Securities
Multi -Bank Securities
SAMCO Capital
SouthStatel DuncanWilliams
Rice Financial
Wells Fargo Securities
These broker/dealers meet the City's Investment Policy requirements.
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