The document discusses the City of Alamo Heights' annual review and adoption of its investment policy. It provides background on requirements from the Texas Public Funds Investment Act, describes investment strategies around safety, risk, and yield. Two changes are highlighted making commercial paper maturity up to 365 days and having the finance director, city manager, and council member conduct the annual review. It analyzes that the policy complies with the Act's requirements.

1. FINANCE
Presented by:
Robert Galindo
Finance Director
INVESTMENT POLICY ANNUAL
REVIEW AND ADOPTION
ITEM # 14
SEPTEMBER 9, 2019

2. BACKGROUND
 The Texas Government Code Chapter 2256,
known as the Public Funds Investment Act
(PFIA) establishes requirements for local
governments for managing investments.

3. BACKGROUND
The Texas PFIA requires the following:
 Review & adoption of the investment policy & investment
strategy annually
 Designate an investment officer
 Disclose personal/business relationships
 Provide policy for written certification
 Obtain annual audit
 Provide for training
 Provide quarterly reports

4. INVESTMENT POLICY STRATEGIES
The investment policy includes strategies to:
 Provide safety of principal
 Minimize risk to the City’s portfolio
 Put money to work
 Add yield but not risk to the portfolio

5. INVESTMENT POLICY CHANGES
Two changes highlighted in yellow.
 Per HB 2706, Commercial paper maturity can
be up to 365 days.
 The investment policy annual review shall be
done by the Finance Director, City Manager and
a member of the City Council.

6. POLICY ANALYSIS
 The investment policy for the City of Alamo
Heights is in compliance with the Texas
Government Code Chapter 2256, known as
Public Funds Investment Act (PFIA).

7. SUMMARY
 Resolution complies with the annual review of the
investment policy and adoption of the investment
policy as required by the Texas Public Funds
Investment Act.