The document summarizes the annual review and adoption of the City of Alamo Heights' investment policy as required by the Texas Public Funds Investment Act. It outlines minor revisions to the policy regarding eligibility requirements for banks and credit unions, weighted average maturities for money market mutual funds, and market value ratios for statewide investment pools. The resolution acknowledges the annual review of the investment policy to comply with state law and maintain strategies for safety, minimizing risk, and yield for the City's investment portfolio.
1. INVESTMENT POLICY
ANNUAL REVIEW and ADOPTION
Presented By: Robert Galindo
Finance Director
Item # 5
City Council Meeting
March 26, 2018
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2. BACKGROUND
The Texas Government Code Chapter 2256,
known as the Public Funds Investment Act
(PFIA) establishes requirements for local
governments for managing investments.
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3. 3
BACKGROUND
The Texas PFIA requires the following:
โข Review and adoption of the investment policy and
investment strategy annually
โข Designate an investment officer
โข Disclose personal/business relationships
โข Provide policy for written certification
โข Obtain annual audit
โข Provide for training
โข Provide quarterly reports
4. 4
BACKGROUND
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).
5. 5
INVESTMENT POLICY REVISIONS
Changes to policy highlighted in yellow:
โข Banks, credit unions and financial
institutions savings and loans associations
seeking to establish eligibility for the Cityโs
competitive certificate of deposit purchase
programโฆpage 5 of policy
6. 6
INVESTMENT POLICY REVISIONS
Money Market Mutual Funds:
โข Has a weighted average maturity of 60 90
days or less; and
โข Required to have $1 net asset value Includes
in its investment objectives the maintenance
of a stable net asset value of $1 per share.
pages 9 and 10 of policy.
7. 7
INVESTMENT POLICY REVISIONS
State Wide Investment Pools:
โข In addition to the preceding requirements,
investment pools created to function, as
money market mutual funds must mark-to-
market daily and must stabilize at $1. maintain
a market value ratio (market value divided by
book value) between .995 and 1.005 page 10
of policy.
8. 8
FISCAL IMPACT
The investment policy includes strategies to:
โข Provide safety of principal
โข Minimize risk to the Cityโs portfolio
โข Put money to work
โข Add yield but not risk to the portfolio
9. SUMMARY
Resolution acknowledges the annual review
of the investment policy and adoption of the
investment policy as required by the Texas
Public Funds Investment Act.
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