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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. 3 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. 5 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 7 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 [4 e n h.-J 1 QYepravldatrrvel hl,lsptsbderds nience it ofwhty& EPeI &Arlon seaaby ra Provide attractive & unique spews Icr eNarment glpersonsl Interests CA Attract &keep [!p -tier [SPremaree Iles businesses ivdrivaedynemic& PPh1,s sustalnebleaconomlc lurpe& ernlmnmcM volunteer rinwhlps lnvolvlment Promote Learning & Growth L3 Ensureeurpeople L2 Enhanw leadership L3A[[recLdevelpp& Ll Recarnlr!& LSEmppwei lnhrmed u Merstendthestre". _blllUeste deliver retelnaskdlled reward hllls derlslpn- meklneeC all levels how thvycoMribute [d it results woikfarce performers In thegreenlaetign y 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 B1 Achieve best- BE EaElsborete with 63 Fnhenta reslaent Bq Provide WIMP ve Saopttmic. In -clew swtw In aalectpeRnen tq qusllry of We &business hlehq un pertlrmance vi seal all fJrydnclpllncs Implement aervlce austalnablllty thrweh eustemer delivery &operetiunal tecbnolpge solutlgiu twrdsm service prosasses Provide Financial Stewardship F4Adheretgfinanclal management Fl lmeIt, prwlde &maintain F3AChievehscal wellness FO Establish &mainCain riples &bvd¢et hi¢h quality vubhca. andards eHectiv. arc . •.. Promote Learning & Growth L3 Ensureeurpeople L2 Enhanw leadership L3A[[recLdevelpp& Ll Recarnlr!& LSEmppwei lnhrmed u Merstendthestre". _blllUeste deliver retelnaskdlled reward hllls derlslpn- meklneeC all levels how thvycoMribute [d it results woikfarce performers In thegreenlaetign y 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 U CITY Oli SOUTHLAKE 10