Title
Consider and take action on a resolution approving the Investment Policy, Investment Strategies, List of Authorized Broker/Dealers and Safekeeping/Custodial Agents for the City of League City (Director of Finance)
Background:
Approval of this item is for the Investment Policy, Investment Strategies, List of Authorized Broker/Dealers and Safekeeping/Custodial Agents for the City of League City
Pursuant to the Public Funds Investment Act (PFIA), Texas Government Code, 2256, the governing body of an investing entity covered by the act is required to review and approve the entity’s investment policies annually. The City's policy was last approved on June 25, 2019.
Updates to the Investment Policy were to bring the authorized investments and investing parameters more in line with the PFIA to allow Commercial Paper as a permissible investment per the HB 2706 passed in 2019. Other notable changes include loosening restrictions on the maximum maturity of any one security to allow for greater return on investments without sacrificing the priority of Safety and Liquidity for City Funds.
In August 2019, the City received certification from the Government Treasurers’ Organization of Texas (GTOT) that the policy meets the requirements of the PFIA and the standards for prudent public investing established by GTOT. This is certification is valid through August 2021.
The Finance Committee is expected to approve the investment policy as presented on July 27, 2020.
Attachments
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - Investment Policy
4. Investment Policy - Redlined
5. GTOT Award Letter
FUNDING
{ X } NOT APPLICABLE
{ } Funds are available from Account #_______