Agenda

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Item # 15.

Council Meeting

Meeting Date:	04/13/2021
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Continuously improve processes and policies to include the voice of the customer and ensure the policies are easily accessible

AGENDA CAPTION:

Present, Discuss, and Consider Action on a Resolution Approving Brokers, Dealers, and Financial Institutions to Conduct Investment Transactions for Fiscal Year 2020-2021.

BACKGROUND:

The Town of Addison previously contracted with Hilltop Securities Asset Management (HSAM) to provide investment advisory services. As the Town's investment advisor, HSAM would propose investment transactions for the Town to consider from a list of approved brokers, dealers, and financial institutions which they were responsible for performing due diligence on and maintaining. During the first quarter of Fiscal Year 2021, Town staff notified HSAM of our intention to terminate the investment advisory contract effective April 1, 2021 and perform those services with existing Town staff who possess the necessary Public Funds Investment Act training and experience in the management of municipal funds. The cost of the investment advisory contract was based on the average size of the Town's investment portfolio and totaled approximately $70,000 annually. In addition to the savings, Town staff believes the portfolio will be managed more effectively utilizing staff resources.

The list of recommended qualified brokers, dealers, and financial institutions were vetted by Town staff in accordance with the requirements of the adopted Fiscal Year 2021 Investment Policy which requires the Town Council to review, revise, and adopt the list at least annually. As the list was previously maintained by HSAM it was not required to be approved by the Town Council.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Investment Brokers, Dealers, and Financial Institutions