Item 4N
Resolution 16-046, Annual Review of Investment policy and Investment Strategies
Item 4N
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City of Southlake Strategy Map
The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing
efficiency, fiscal responsibility, transparency, and sustainability.
C1 Achieve the highest standards of safety & security
C2 Provide travel convenience within City & region
C3 Provide attractive & unique spaces for enjoyment of personal interests
C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment
C5 Promote opportunities for partnerships & volunteer involvement
Serve our Customers
Manage the Business
B1 Achieve best-in-class status in all City disciplines
B2 Collaborate with select partners to implement service solutions
B3 Enhance resident quality of life & business vitality through tourism
B4 Provide high quality services through sustainable business practices
B5 Enhance service delivery through continual process improvement
B6 Optimize use of technology
Provide Financial Stewardship
Promote Learning and Growth
F1 Adhere to financial management principles & budget
F2 Invest to provide & maintain high quality public assets
F3 Achieve fiscal wellness standards
F4 Establish & maintain effective internal controls
L1 Ensure our people understand the strategy & how they contribute to it
L2 Enhance leadership capabilities to deliver results
L3 Attract, develop & retain a skilled workforce
L4 Recognize & reward high performers
L5 Empower informed decision-making at all levels in the organization
C6 Enhance the sense of
community by providing excellent customer service and citizen engagement opportunities
L6 Foster positive employee engagement
Deliver on Our Focus Areas
The investment policy and strategies links to the City’s strategy map relative to the focus area of Performance Management and Service Delivery and specifically to the corporate business
objectives of F1-Adhere to financial management principles and budget as well as F3-achieve fiscal wellness standards
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Propose of Review
Public Funds Investment Act Section 2256
Requires the governing body to review its policy and strategies annually (last review September 2015)
Section 2256 – Public Funds Investment Act (“Act”) of the Texas Government Code establishes the requirements for a local government investment policy.
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Resolution 16-046
Policy reviewed against the Public Funds Investment Act
No recommended changes
Both city staff and our financial advisor’s reviewed the policy for compliance and no required changes were identified
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Investment Strategy
Operating funds
First objective:
match cash flows with adequate liquidity
Second objective:
minimal volatility during economic cycles
Now I would like to take a few moments to talk about the city’s investment strategy
First objective is to assure that anticipated cash flows are matched with adequate investment liquidity.
Second
objective is to create a portfolio structure which will experience minimal volatility during economic cycles.
This may be accomplished by purchasing high quality, short to medium term
securities which will complement each other. A dollar weighted average maturity of 365 days or less will be calculated using the stated final maturity date of each security.
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Investment Strategy
Debt Service funds
Primary objective:
to ensure adequate investment liquidity
Primary objective: to ensure adequate investment liquidity to cover the debt service obligation on the required payment date.
Securities purchased shall not have a stated maturity date
which exceeds the debt service payment date.
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Investment Strategy
Special projects, special purpose, or construction fund
Primary objective: match cash flows with adequate liquidity.
Primary objective: to ensure anticipated cash flows are matched with adequate investment liquidity.
These portfolios should include at least 10% in highly liquid securities to allow
for flexibility and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated project completion date.
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Investment Authority
Investment Officer(s) of the City:
Chief Financial Officer
Deputy Director
City staff involved in the investment process shall refrain from personal business activity.
The Chief Financial Officer and Deputy Director- are designated as Investment Officer(s) of the City and are responsible for investment decisions and activities.
City staff involved
in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, which could impair the ability to make impartial
investment decisions
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Investment Objectives
Safety
Liquidity
Yield
Public Trust
The City of Southlake shall manage and invest its cash with four objectives, listed in order of priority: Safety, Liquidity, Yield, and Public Trust. The safety of the principal invested
always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust and consistent with State and Local law.
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Questions?
Sharen Jackson
817-748-8042
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