HomeMy WebLinkAbout032189 RES - 08/25/2020Resolution amending and reaffirming the City of Corpus Christi's Investment
Policy and Investment Strategies for fiscal year 2020-2021.
WHEREAS, the City of Corpus Christi's Investment Policy and Investment Strategies
were first adopted pursuant to Resolution No. 022390 on October 24, 1995;
WHEREAS, the Texas Public Funds Investment Act requires the governing body to
annually review, amend as necessary, and reaffirm its investment policy and investment
strategies;
WHEREAS, the Investment Policy and Investment Strategies were previously reviewed
and reaffirmed for fiscal year 2019-2020 pursuant to Resolution No. 031925 on November 12,
2019; and
WHEREAS, the Investment Policy and Investment Strategies were reviewed for fiscal
year 2020-2021 by the Investment Committee on June 25, 2020; recommended by the
committee for approval with style and formatting changes, substantive amendments, and an
updated issuance date; and are being recommended for reaffirmation by the City Council.
Therefore, be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. The City Council has reviewed the City of Corpus Christi's Investment Policy and
Investment Strategies for fiscal year 2020-2021. A copy of the Investment Policy, which contains
the separate Investment Strategies, for fiscal year 2020-2021 is attached to this resolution as
Exhibit A and incorporated by reference into this resolution as if set out here in its entirety.
Section 2. Style and formatting changes, along with substantive amendments, are being made
to the previous fiscal year's Investment Policy and Investment Strategies document, with such
changes and amendments delineated and described below:
(a) Section VIII, "Authorized Investments," subsection A.2. is changed from a maturity
of one year to two years and amended to read as follows: "Fully Federal Deposit
Insurance Corporation (FDIC) insured or collateralized depository certificates of deposit
of a depository institution that has its main office or a branch in Texas with a maximum
maturity of two years."
(b) Section VIII, "Authorized Investments," subsection A.7. is changed from a maturity
of two years to three years, expanded to include other government units, and amended
to read as follows: "General debt obligations of any U.S. States, agencies, counties,
cities, and other political subdivisions of any state rated no less than A by a nationally
recognized rating agency and with a maximum stated maturity of three years."
(c) Section VIII, "Authorized Investments," subsection A.9. is changed from a maturity
of 180 days to 270 days, expanded to include equivalent -rated commercial paper in
accordance with State law, and amended to read as follows: "A1/P1, or equivalent,
rated commercial paper with a maximum maturity of 270 days subject to meeting one of
the two stated conditions in Sec. 2256.013."
0321.89
SCANNED
(d) Section IX, "Collateralization," subsection A., second paragraph is changed to
pluralize "custodian" and amended to read as follows: "All collateral shall be held by
independent third -party custodian(s) approved by the City under an executed collateral
agreement with the pledging bank. The custodian(s) shall provide a monthly report of
the collateral. The value of pledged securities must be at least 102% of deposits
including accrued interest."
(e) Section IX, "Collateralization," subsection A.2. is changed to expand allowed
obligations of other government units, consistent with the change in Section 2(b) of this
resolution, and amended to read as follows: "Obligations of states, agencies, counties,
cities, and other political subdivisions of any state rated not Tess than A by a nationally
recognized rating agency, and"
(f) Remove additional line spacing between subparts and revise the page numbers in
the Table of Contents.
Section 3. With an updated issuance date that coincides with the date this resolution is passed,
the City Council approves the City of Corpus Christi's Investment Policy and Investment
Strategies for fiscal year 2020-2021 and reaffirms the continuation of the policy and strategies
in full force and effect.
PASSED AND APPROVED on the 5Thday of
Joe McComb
Roland Barrera
Rudy Garza
Paulette M. Guajardo
Gil Hernandez
Michael Hunter
Ben Molina
Everett Roy
Greg Smith
, 2020:
ATTEST: CITY OF CORPUS CHRISTI
Ci (k t
Rebecca Huerta J e cComb
City Secretary ay r
0 3 2 1. 8 9