Leon Valley
TX

Ordinance
Ordinance 17-065

Annual Review and Adoption of an Ordinance Approving the Investment Policy for the City of Leon Valley

Information

Department:FinanceSponsors:
Category:Report

Attachments

  1. Printout
  2. Investment Policy 2017 (This file has not yet been converted to a viewable format)

Item Discussion

PURPOSE

 

The Public Funds Investment Act of 1987 (PFIA) established rules and regulations for governmental entities to follow for the proper investment of public monies. 

 

Since there has been no legislative or investment strategy changes that would require the City to change its policy, no proposed changes to the current policy are being recommended. 

 

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

 

 

 

Document Comments

RECOMMENDATION

 

Adopt the Ordinance approving the City of Leon Valley Investment Policy.

 

Body

AN ORDINANCE OF THE LEON VALLEY CITY COUNCIL APPROVING AND ADOPTING THE CITY OF LEON VALLEY INVESTMENT POLICY AND INVESTMENT STRATEGIES.

 

WHEREAS, Texas Government Chapter 2256, the Public Funds Investment Act (the “Act”) authorizes a municipality to purchase, sell, and invest its funds and funds under its control in investments authorized under the Act in compliance with investment policies approved by the governing body and according to the standard of care prescribed by the Act; and

 

WHEREAS, the Act requires the City review the City’s investment policy and investment strategies no less than annually; and

 

WHEREAS, the City Council hereby finds and determines that the attached investment policy and investment strategies complies with the Act and authorizes the investment of City funds in safe and prudent investments;

 

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Leon Valley:

             

Section 1.              That the City of Leon Valley Investment Policy attached hereto and incorporated herein as Attachment 1 and the investment strategies provided for therein has been reviewed by the City Council and is hereby approved and adopted as the investment policy of the City of Leon Valley effective October 18, 2016 with no changes.

 

Section 2.              This ordinance is effective immediately upon passage by four (4) affirmative votes; otherwise it is effective on the tenth day after passage hereof.

 

 

Discussion







Powered by Accela - Legislative Management