Item 4I Audiov
SOUTHLAKE
Propose of Review
• Public Funds Investment Act Section
2256
— Requires the governing body to review
its policy and strategies annually (last
review August 2011 )
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 August 2011
E
Resolution 12 -039
• 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:
• 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.
0
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.
0
Investment Authority
• Investment Officer(s) of the City:
— Director of Finance
— Deputy Director
• City staff involved in the investment
process shall refrain from personal
business activity.
The Finance Director 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
• Field
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.
City of Southlake Strategy Map
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 value and
unrivaled quality in everything we do.
•
ffi Safety & Mobility Infrastructure Quality Partnerships & Performance Management
Security Development Volumeerlsm & Service Delivery
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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 Adhere to financial management principles and
budget as well as achieve fiscal wellness standards
9
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