The finance director presented the annual review and adoption of the city's investment policy as required by the Texas Public Funds Investment Act. The policy was revised with minor changes to training requirements and diversification limits. Adopting the reviewed policy acknowledges the city's compliance with state law governing the management of public investments to ensure safety, minimize risk, and provide yield without unnecessary risk.

1. INVESTMENT POLICY
ANNUAL REVIEW and ADOPTION
Presented By: Robert Galindo
Finance Director
Item # 9
City Council Meeting
April 24, 2017
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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 cont’d
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

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
Two changes to policy highlighted in yellow
and in compliance with PFIA:
1. Training changed to 8 hours instead of
10 hours after initial training
2. Diversification section – No more than
80% in savings bank deposits with no
more than 50% with any one financial
institution

6. 6
FISCAL IMPACT
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

7. 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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8. QUESTIONS?
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