HomeMy WebLinkAbout022980 RES - 07/08/19971
RESOLUTION
AMENDING THE CITY INVESTMENT POLICY TO: REVISE
PRIMARY POLICY OBJECTIVES; EXTEND THE
MAXIMUM TERM FOR REPURCHASE AGREEMENTS;
AND TO MODIFY THE INVESTMENT COMMITTEE
MEMBERSHIP LIST.
The City of Corpus Christi Investment Policy was adopted in Resolution No. 022390, which
was passed on October 24, 1995. In recent meetings, the City of Corpus Christi Investment
Committee reviewed the investment policy. Based on the committee's recommendation, the city
council will amend the city investment policy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. The city investment policy, adopted in Resolution No. 022390, is amended.
First, investment policy objectives will be revised as specified in Exhibit A. Second, the maximum
allowable stated maturity for repurchase agreements will be extended from up to 31 days to up to
365 days as specified in Exhibit B. Third, the membership list for the city investment committee
will be modified as specified in Exhibit C.
SECTION 2. The Director of Finance will provide a copy of the revised city investment
policy to the City Secretary.
ATTEST:
Armando Chapa, City ecretary
THE CITY OF CORPUS CHRISTI
MAYOR
THE CITY OF CORPUS CHRISTI
APPROVED: / g DAY OF Jiro -e -i , 1997.
JAMES R. BRAY JR., CITY ATTORNEY
By:
Michael L. Scanlon
Assistant City Attorney
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The above resolution was passed by the following vote:
Loyd Neal
Jaime Capelo
Melody Cooper
Alex L. Garcia, Jr.
Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
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, 1997.
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I. INTRODUCTION
It is the policy of the City of Corpus Christi to invest all available monies in conformance with
these legal and administrative guidelines.
Effective cash management is recognized as essential to good fiscal management. An aggressive
cash management program will be pursued to maximize interest earnings as a viable and
material revenue source. The City's portfolio shall be designed and managed in a manner
responsive to the public trust and consistent with local, state, and federal law.
Investments shall be made with the primary objective of:
o Preservation of capital and protection of principal;
• Maintenance of sufficient liquidity to meet operating needs;
• Security of city funds and investments;
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• Maximization of return on the portfolio.
* Diversitication of investments to minimize risk while maximizing interest
earnings; and
Earnings from investments will be used in a manner that will best serve the interests of the City
of Corpus Christi.
11. PURPOSE
A. Authorization
This Investment Policy is authorized by the City Council (see Appendix G) in
accordance with Chapter 2256, Subchapter A of the Government Code—The
Public Funds Investment Act (see the attached and incorporated Appendix A).
B. Scone
This Investment Policy applies to activities of the City, excluding pension funds,
with regard to investing the financial assets of all Funds, including, but not
limited to, the following Funds:
General Operating Funds
Special Revenue Funds
Bond Funds (Bond Proceeds, Bond Reserves and Debt Service)
Enterprise Funds
Internal Service Funds
Special Purpose Funds (within the control of Investment Officers)
In addition to this policy, the investment of Bond Funds, Debt Service, and
Reserve Funds shall be managed by their governing ordinances and Federal Law,
including the Tax Reform Act of 1986 and subsequent legislation.
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Exhibit A
b. U.S. Aaenciec: Maximum Term
(1) Federal Home Loan Bank up to 2 years
(2) Federal National Mortg Assoc up to 2 years
(3) Federal Farm Credit up to 2 years
(4) Federal Home Loan Mortg Corp. up to 2 years
(5) Student Loan Marketing Assoc. up to 2 years
c. Repurchase Agreements Up to 365 days
Repurchase agreements fully collateralized at 102% with a defined
maturity date placed with a primary government dealer and
safekept at a Third Party Safekeeping Institution, as provided under
the provisions of the PSA (Public Securities Association) master
repurchase agreement. An executed agreement between the City,
primary government dealer and Third Party Safekeeping Institution
will be on file before the City will enter into a repurchase
agreement.
Weekly monitoring by the City's Investment Officers of all
Collateral underlying repurchase agreements is required. More
frequent monitoring may be necessary during periods of market
volatility.
Reverse repurchase agreements are not a permitted Investment until
approved by the City Council.
d. Local Government Investment Pool daily
Investments made on behalf of the City by a public funds
investment pool duly created to function as a money market mutual
fund who marks its portfolio to market daily and, to the extent
reasonably possible, who stabilizes its portfolio at a $1 net asset
value. If the ratio of the market value of the Pool's portfolio
divided by the book value of the portfolio is less th._n 99.50% or
greater than 100.50%, the Pool's portfolio holdings shall be sold as
necessary to maintain the ratio between 99.50% and 100.50%.
The public funds investment pool must be continuously rated no
lower than AAA or MA -m or at an equivalent rating by at least one
nationally -recognized rating service (see the attached and
incorporated Appendix C).
e. Collateralized Certificates of Deposit up to 1 year
Certificates of deposit or other instruments issued by state and
national banks domiciled in Texas that are:
Exhibit 13
A. Investment Committee
City Manager (atictiotx1DtW9(040.1taliagfilq
Gwerdianagenntraceimintscativelmeminex
Director of Finance
City Attorney
Director of Management and Budget
Assistant City Managers (three)
B. Internal Reporting/Evaluation
The following reports are to be submitted on a:
1. Daily basis to the Director of Finance or Designee (Excluding Investment
Officers :
a. Cash Position by Bank Account
b. Investment Portfolio by Maturity Date
c. Schedule of Investment Purchases/Maturities
2. Monthly basis to the Investment Committee:
a. Report of Cash and Investments by Fund
b. Interest Report
c. Report any change in the membership of the TEXPOOL Board of
Directors; amendment of the interlocal cooperation agreement;
amendment of the By-laws; or change in the amount, percentage,
or method of computation of the administrative fee of any public
funds investment pool which the City Council has approved.
d. Market Value vs Book Value Analysis of Investment Portfolio
3. Quarterly Basis to Investment Committee and City Council:
a. Compliance with Public Funds Investment Act and Investment
Pol icy
b. Interest Report
c. Investments by Institution
d. Investment Maturities/Purchases
e. Collateral Position
f. Highest/Lowest Interest Yields
g. Investment Survey
h. Analysis of Gains/(Losses) on Sale of Securities
Market Values vs Book Values of Investment Portfolio
j. Forecast of Market Conditions
C. External Reporting/Evaluations
On a quarterly basis, the City's main depository and all applicable Institutions
providing certificates of deposit in excess of FDIC coverage will provide to the
Investment Officer for review a copy of the balance sheet and income statement
of the Call Report. All Institutions will provide annual audited financial
Exhibit C
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