PPT City Investment Policy

1. ADMINISTRATION AND
FINANCE
Presented by:
Robert Galindo
Finance Director
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INVESTMENT POLICY ANNUAL
REVIEW AND ADOPTION
ITEM # 5
JANUARY 9, 2023

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. BACKGROUND CONTINUED
The Texas PFIA requires the following:
• Review and adoption of the investment policy and
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 3

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
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5. CHANGES INTEREST RATES
• In the last year, interest rates have increased from 0%
to about 4.50%
• December 14, 2022 the Fed indicated it may increase
rates to 5% or above and leave interest rates at a
higher level in 2023 and possibly 2024.
• An opportunity for a better return since 2009 with
minimal risk (U.S. T-bills, U.S. agency bonds, municipal
and school district bonds)
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6. INVESTMENT POLICY AMENDMENTS 2023
• Clarifies that investment pools include commercial paper and
commercial paper is allowed up 80% of portfolio
• Adds broker/dealers:
• Frost Bank /safekeeping/custody
• Hilltop Securities
• SWBC Broker / Investment Advisor
• Adds an option to have an investment management firm manage a
portion of the city’s portfolio when it’s best
• Allows for CDs, Certificates of Deposit, outside of Texas 6

7. INVESTMENT POLICY 2023
• The investment policy for the City of Alamo Heights
is in compliance with the Texas Government Code
Chapter 2256, known as the Public Funds
Investment Act (PFIA).
• Reviewed by the Finance Director, City Manager,
City Attorney and CM Savage.
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8. 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.
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