Leon Valley
TX

Staff Report
17-87

Consider Approval of Quarterly Investment Report for the Quarter ending September 30, 2017

Information

Department:FinanceSponsors:
Category:Report

Item Discussion

PURPOSE

 

The purpose is to approve the Quarterly Investment Report for the quarter ending September 30, 2017.

 

SEE LEON VALLEY

 

Social - To ensure compliance with the Public Funds Investment Act of 1987.

The Public Funds Investment Act of 1987 (PFIA) established rules and regulations for governmental entities to follow for the proper investment of public monies. The City's investment program is conducted to accomplish the following objectives, listed in priority order.

A.              Safety

The primary objective of the City's investment program is the preservation and safety of principal in the overall portfolio. Each investment transaction shall seek first to ensure that capital losses are avoided, whether they are from security defaults or erosion of market value.

B.              Liquidity

The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements; thereby avoiding the need to liquidate investments under adverse market condition. It is the intent of the City to invest its funds to maturity. 

C.              Diversification

The investment portfolio will be designed to limit risk by avoiding the concentration of assets with a specific maturity, with a specific issuer, or in a specific class of securities. 

D.              Yield

A fundamental rule of investing is that risk equals return. The City has deliberately established a low risk threshold to protect its financial resources and ensure that cash is available when needed. The City will invest idle cash at the highest possible rate of return, consistent with the objectives and provisions of this policy, and in compliance with state and federal laws governing the investment of public funds.

 

Economic - See above 

 

Environmental - N/A

 

FISCAL IMPACT

 

None.

 

 

Document Comments

RECOMMENDATION

 

Approve Quarterly Investment Report for the quarter ended September 30, 2017.

 

 

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