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Item # 21.

Council Meeting

Meeting Date:	10/12/2021
Department:	Finance
Pillars:	Gold Standard in Financial Health

AGENDA CAPTION:

Present, Discuss, and Consider Action on a Resolution Adopting an Investment Strategy and Approving Brokers, Dealers, and Financial Institutions for Fiscal Year 2021-2022.

BACKGROUND:

The Public Funds Investment Act (PFIA) requires the Council to annually adopt the Town's Investment Policy. The document has been drafted to comply with all aspects of the PFIA. This policy applies to the investment and management of all funds of the Town. Direct management responsibility for the investment program is delegated by the City Council to the Chief Financial Officer. The investment policy has the following priorities:

Preservation and safety of principal
Understanding the suitability of the investment to the financial requirements of the Town
Liquidity
Marketability of the investment if the need arises to liquidate the investment prior to maturity
Diversification of the investment portfolio
Yield

Finance staff determined that no changes are needed to the Town's investment policy.

The attached Resolution includes the Town's Investment Policy in Exhibit A.

The list of recommended qualified brokers, dealers, and financial institutions were vetted by Town staff in accordance with the requirements of the adopted Investment Policy which requires the Town Council to review, revise, and adopt the list at least annually. The recommended list includes the addition of Prosperity Bank to the last list that was approved by Council on April 13th, 2021.

The attached Resolution includes the list of brokers, dealers, and financial institutions in Exhibit B.

Also attached to this item is the Certification of Investment Policy from the Government Treasurer's Organization of Texas for the period from July 1st, 2021 to June 30th, 2023.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Fiscal Year 2021-2022 Investment Policy
Investment Policy Certification