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Item 6B Audio9 rITY Or SOUTHLAKE gin.. Propose of Review • Public Funds Investment Act Section 2256 — Requires the governing body to review its policy and strategies annually (last review September 2010) Section 2256 — Public Funds Investment Act ( "Act ") of the Texas Government Code establishes the requirements for a local government investment policy. The City of Southlake last reviewed its investment policy in September 2010. E Resolution 11 -041 • Policy reviewed against the Public Funds Investment Act — Identified no necessary changes to the investment policy. Staff and financial advisor have reviewed the investment policy against the Act and have not identified any necessary changes to the investment policy. 3 Investment Strategy • Operating funds — 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. 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. 0 Investment Strategy • Debt Service funds — 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. 5 Investment Strategy • Special projects, special purpose, or construction fund — 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. 0 Investment Authority • Investment Officer(s) of the City are responsible for investment decisions and activities. — Director of Finance —Deputy Director - Administration • City staff involved in the investment process shall refrain from personal business activity. The Finance Director and Deputy Director - Administration 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 7 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. C% @&• 11M &lima The City of Southlake provides municipal services that support • the highest quality of • life for our residents and businesses. We do this by delivering outstanding unrivaled quality in everything that we do. value and - • C1 Achieve the C2 Provide travel Provi de attractive C4 Attract and keep highest convenience and unique spaces tier businesses to drive top- C5 Promote opportunities for standards of within City and for enjoyment of a dynamic and safety and region personal interests sustainable economic partnerships and volunteer involvement security environment B1 Achieve B2 Collaborate with B3 Enhance resident B4 Provide best select partners to quality of life and high quality B5 Improve performance B6 Optimize " -in -class status in all City implement service business customer sustainablli through service disciplines solutions is g of delivery and use of operational technology processes tourism F1 Adhere to financial F2 Invest to provide and F3 Achieve fiscal management maintain high quality wellness F4 Establish an maintain effa v principles and budget public assets standards . internal controls L1 Ensure our L2 Enhance L3 Attract, L4 Recognize L5 Empower people understand leadership develop and and retain a informed decisio the strategy and capabilities to reward high they contribute deliver results skilled performers to it workforce making at all lev in the organizati C% SOUTHLAKE 1 10