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.
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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.
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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.
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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
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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.
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
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SOUTHLAKE
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