HomeMy WebLinkAboutRES 24-269RESOLUTION NO.24-269
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMON`I":
WHEREAS, State law mandates the City Council to review the Investment Policy and
improve modifications, if any, on an annual basis; and,
WHEREAS, this year the following changes were made:
1. Page 2 -- Confirni/change titles of Investment Officers since former CFOs
resignation; and,
2. Page 5 — Addition of national Credit Union Share Investment language; and,
3. Page 6 - $1.000 per share for MMMF; and,
4. Page 7 -- Collateralization language update to include NCUSIF and clarity; and,
5. Page S — FIRREA language "must" consistency and safekeeping language
clarification; and,
6. Exhibit A Broker/Deal list --- removal of one broker/Dealer
7. A few minor changes numbering and granunatical updates;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the Council be and they are hereby authorized to approve the City of
Beaumont Investment Policy as amended.
The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Goveriu- ent Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 29th day of
October, 2024.
No Text
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TEXAS
Investment Policy
Adopted by
City Council
October 29, 2024
City of Beaumont - Investment Policy
Table of Conteitts
1. Introduction ................................................................................................................
it. Scope ..................... .......................................................................................................I
III. Prudence.....................................................................................................................1
IV. Objectives....................................................................................................................1
A. Safety of Principal..........................................................................................2
B. Liquidity..........................................................................................................2
C. Public Trust.................,..................................................................................2
D. Yield................................................................................................................2
V. Delegation of Authority........................„...................................................................2
VI. Ethics and Conflicts of Interest................................................................................3
VILTraining......................................................................................................................3
VIII. Selection of Financial Dealers, Institutions altd Investments Pools .....................A
A. Broker/Dealers.H.Hf..F..N......................................................................H.........4
B. Public Depositories.........................................................................................4
C. Investincict Pools............................................................................................5
IX. Authorized and Suitable Investments......................................................................5
X. Competitive Environment.........................................................................................7
XI. Collate)'alizRtion......................................................................... 4........................H..a 11 7
XII. Safekeeping and Custody..........................................................................................8
XIII, Diversification............................................................................................................8
XIV, Investment Strategies ......................................................................................I.........9
A. Pooled Ferrol Groups.......................................................................................9
B. Debt Service Funds .......................................................................................10
C. Debt Service Reserve Funds.........................................................................10
D. Natural Gas Account................................................................11
XV. Internal Control......................................................................................................12
XVT. Performance Standards.........................................................................................12
XVII. Reporting.................................................................................................................12
XVIII. Investment Policy Adoption...................................................................................13
Exhibit
Exhibit A - Approved List Bross.er/Deaiers...........................................................................1.5
City of Beallmont
Investment Policy
I. Introduction
It is the policy of the City of Beaumont to invest public Rinds in a manner that will ensure
that the investments are duly authorized, properly managed, adequately protected and
fully collateralized. The City shall seek the optimunx investment return with the
maximum security while meeting daily Cash needs and Conforming to the City Charter,
the Public Funds hivestntent ,Act (Chapter 2256, Govenunent Code as amended) and all
other state and local statutes governing the investment of public fiends,
If. Scope
This Investment Policy applies to all financial assets of the City as accounted for in the
City's Annual Comprehensive (financial Report. These include General, Special
Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Permanent
Funds, All are pooled for investment purposes except debt service and debt service
reserve funds, and the natural gas account. Interest is allocated monthly to each Fund
based on its individual cash balance,
III. Prudence
Investments shall be made with judgment and care, tinder prevailing circumstances, that
a person of prudence, discretion, and intelligence would exercise in the management of
the person's own affairs, not for speculation, but for investment, considering the probable
safety of capital and the probable income to be derived, The "prudent person" standard
shall be applied in the context of managing the total portfolio rather than a single
investment providing that the decision was consistent with this Investment Policy,
Investment Officers acting in accordance with written procedures and the Investment
Policy and exercising due diligence shall be relieved of responsibility for an individual
investment's credit risk or market price changes provided (fiat deviations from exceptions
are reported in a timely fashion and appropriate action is taken to control adverse
developments,
IV. Objectives
The primary objectives, in priority order, of the City's investment activities shall be safety
of principal, liquidity, public trust, and yield,
A. Safety of Principal
The City has as its foremost objective to ensure the safety of principal. Investments
of the City shall be undertaken in a manner that seeks to ensure the preservation of
principal in the overall portfolio. To at#ain this objective, diversification is required
in order to eliminate an over -concentration of assets in one institution, maturity or
type of investment, where appropriate.
B. Liguidily
The City's investment portfolio will remain sufficiently liquid to eatable the City to
meet all operating requirements that might be reasonably anticipated. Tlie portfolio
shall be constructed so that investment maturities are matched with forecasted cash
flow requirements and limited by investments with an active secondary market or
convertible to cash with little or no penalty,
C. Public Trust
Investment Officers shall seek to act responsibly as custodians of the public trust.
Investment Officers shall avoid any transaction that might impair public confidence
in the City's ability to govern effectively.
D. Yield
The City's investment portfolio shall be designed with the objective of attaining a
rate of return that is consistent with risk limitations and cash flow characteristics of
the City's investments.
V. Delegation of Authority
Authority to manage the City's investment program is derived from the City Charter
(article VII, section 1-2). The Charter designates the City Manager as Director of Finance
who shall have custody of all public funds, investments, boards and notes of the City and
be responsible for their safekeeping. The City Manager shall establish written
procedures for the operation of the investment program consistent with this Investment
Policy that include explicit delegation of authority to parsons responsible for investment
transactions. The City Manager shall be responsible for all transactions undertaken and
shall establish a system of controls to regulate the activities of subordinate officials.
The City Manager, the Chief Financial Officer, and the Deputy Controller are approved
as Investment Officers of the City. Such approval of specific personas shall remain in
effect until rescinded by the City Council or until termination of the person's employment
by the City. Investment Officers shall not deposit, withdraw, transfer or manage the
funds of the City in a maiuier that is not consistent with the "prudent person" standard as
described in section III of this Policy.
The City Council maintains the right to hire Investment Adviser's to assist City staff in
the investment of fluids. Investment Advisees shall adhere to the spirit, philosophy and
specific terms of this policy and shall invest within the same objectives. The City
Manager sliall establish criteria to evaluate Investment Advisers, including;
A. Adherence to the City's policies and strategies;
B. Investment strategy recommendations within accepted risk constraints;
C. Responsiveness to the City's request for services and information;
D. Understanding of the inherent fiduciary responsibility of investing public finds;
and
E. Similarity in philosophy and strategy with the City's objectives.
Selected Investment Advisers must be registered under the Investment Advisers Act of
1940 or with the State Securities Board. A contract with an Investment Adviser may
not be for a term longer than two years and any contract, renewal or extension must be
approved by the City Council.
VI, Ethics and Conflicts of Intex-est
Investment Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment decisions.
Investment Officers shall disclose any personal business relationships with business
organizations approved to conduct investment transactions with the City. They shall also
disclose any specific individuals wlxo seek to sell investments to the City and are related
to the Investment Officer within the second degree by affinity or consanguinity, as
determined under Chapter 573. Disclosure shall be filed with the Texas Ethics
Commission and the City Council.
VIL Ti-aining
In order to ensure qualified and capable investment management, each Investment
Officer shall attend at least tell (10) hours of training relating to investment
fesponsibilitics within 12 months after assuming such duties and shall continue to attend
an investment training session consisting of at least eight (8) hours of instruction not less
than once every two years thefeafter, The two-year period shall begin on the first day of
the City's fiscal year and consist of the two consecutive fiscal years after that date.
Training shall be in accordance with the Public Funds Investment Act and include
education in investment controls, security risks, strategy risks, market risks, and
compliance with State statutes governing the investment of public funds. All training
shall be conducted by an independent source that has been approved by City Council.
The approved "independent sources" to provide such training are: (lie Governinent
Treasurers Organization of Texas, the Government Finance Officers Association, the
Goveniment Finance Officers Association of Texas, the Council of Governments, the
Texas Municipal League, and the University of North Texas.
VIII<. Selection of Broker/ Dealers, Financial Institutions and Investment ;fools
Authorized investments shall only be purchased from those institutions selected and
approved in accordance with this Policy,
Any investment pool or discretionary investment management firm which seeks to
execute investment transactions with the City shall provide a written instrument
certifying that they have received and thoroughly reviewed the City's Investment Policy
and have implemented reasonable procedures and controls in an effort to preclude
investment transactions that are not authorized by this Policy. Ewch file City C01mcil
al),proves a material revision to the Investment Policy, the newly revised Investment
Policy must be sent to the gliproved investment pool or discretionary invest)llent
management firm and a business eertification should be oblaineel.
A. Broker/Dealers
The City shall select broker/dealers by their ability to provide effective market
access and may include "Primary Government Securities Dealers" or regional
dealers that qualify under Securities and Exchange Conunission (SEC) Rule 1 SC3-
1 (uniform net capital rule), Broker/dealers selected must be members in good
standing of the Financial Industry Regulatory Authority (" FINRA") and be licensed
by the State of Texas, Each broker/dealer will be reviewed by the Investment
Officers and a recommendation will be made for approval by the City Council.
An "approved broker/dealer list", as shown in ExhillitA, shall be maintained by the
Investment Officers at all times and approved by the City Council oil an annual
basis.
The City shall not enter into transactions with a broker/dealer until official City
Council approval,
B. Public Depositorics/Financial Institutions
The City Council shall select a primary depository as required by law. The primary
depository as authorized by (lie City Council shall meet all requirements of the state
law concerning depositories for municipal finds (Chapter 105, Government Code),
The primary depository shall be selected through the City's banking services
procurement process, including a formal Request for Application (RI:A) issued in
compliance with applicable State law, and offers the most favorable terms and
conditions for the Handling of City funds.
The City may also establish agreements with other financial institutions under
separate contract for additional services that are necessary in the administration,
collection, investment, and transfer of municipal funds. Such deposits will only be
made after the financial institution has completed and returned the required written
instruments and depository pledge agreements. No deposit shall be made except in
a qualified public depository as established by State Law.
C. Investment fools
Investment Officers may invest hinds of the City through an eligible investment
pool with specific approval by resolution of City Council and execution of a written
agreement. To become eligible, investment pools must first meet all requirements
of State Law. They shall provide the City with an offering circular that contains
specific and detailed information, hweshuent transaction confirinations, and
detailed niontbly transaction and performance reports. Pools shall have advisory
boards composed of qualified members representing participants and non-
participants who do not have a business relationship with the pool. Before
selection, pools shall be, thoroughly reviewed and evaluated by the Investment
Officers.
IX. Authorized and Suitable Investments
Authorized investments for municipal governments in the state of Texas are set folill in
the Public Funds Investment Act, as amended. Suitable investments for the City are
limited to the following,
Direct Obligations of the United States or its agencies and instrumentalities that
have a maximum stated maturity date of 5 years or less,
Financial institution deposits placed with approved financial institutions as
described above (section Vill-B) which have a maximum stated maturity date of 5
years or less and are insured by the Federal Deposit Insurance Corporation (FDIC),
National Credit Union Share Insurance (NCUSIF), or their successors; or secured
as described in section XI Collateral ization. Additionally, the City may execute
certificates of deposit, and other forms of deposit, in any manner authorized by the
Public Funds Investment Act.
Dully collateralized direct repurchase agreements with a defined termination date
of 90 days or less which are secured by cash or obligations of the United States or
its agencies and instrumentalities and pledged with a third party other than an agent
for the pledgor. Investment Officers may invest in repurchase agreements through
an approved primary goverrunent securities dealer or an approved depository bank
as described above (section VIII-A, B). Each issuer of repurchase agreements sliall
be required to sign a master repurchase agreement. For flexible repurchase
agreements executed with bond proceeds, the defined termination date of 90 days
or less may be waived to allow the terns of the flexible repurchase agreement to
more closely match the expected terns of the bond project.
No load money ►narket mutual fiends registered with and regulated by the Securities
and Exchange Commission whose investment objectives include the maintenance
of a stable net asset value of $1.0000 per share. Money market mutual funds musk
maintain a AAAm, or equivalent rating from at least one nationally recognized
rating agency; have an average weighted maturity of less than two years; and
provide the City with a prospectus and other information required by the Securities
and Exchange Act of 1934 and be specifically approved by City Council or
purchased through the City's primary depository as an overnight investment tool.
The City Ynay not own more than 10% of the monel mat -fret inuffrrrl fitnrl's total
assets.
Approved investment pools as described above (section VIII-C) which. are
continuously rated no lower than AAA, AAA-m or an equivalent rating by at least
one nationally recognized rating agency.
Investments Not Author-iizeu - The following investments are not authorized under this
section:
a. Obligations whose payment represents the coupon payments on the outstanding
principal balance of the underlying mortgage -backed security collateral and pay no
principal;
b. Obligations whose payment represents the principal stream of cash flow from the
underlying mortgage -backed security collateral and bears no interest;
c. Collateralized mortgage obligations that have a stated final maturity date of greater
than ten years; -and
d. Collateralized mortgage obligations the interest rate of which is determined by an index
that adjusts opposite to the changes in a market index.
Not less than quarterly, the Investment Officers will monitor the credit rating for each
held investment that has a Public Fund Investment Act required minimum rating. Any
Authorized Investment that requires a minimum rating does not qualify during the period
the investment does not have the minimum rating. Prudent measures will be taken to
liquidate an investment that is downgraded to less than the required minimum rating.
The City is not required to liquidate investments that were authorized investments at the
time of purchase.
The purchase of stock is not an authorized investment for municipal governments.
However, stock may be accepted as a donation, provided that it is held in accordance with
the terms of the donation and sold as soon as it is advantageous to Cho so. Itemvestment
of proceeds must be in accordance with authorized and suitable investments for the City
as listed above.
X. Competitive Environment
It is the policy of the City to provide a competitive environment for all individual security
purchases and sales, financial institution deposits, and money market mutual fund and
local governnnnent investment pool selections, The Investment Officers shall develop and
maintain procedures for ensuring competition in the investment of the City's funds.
XI. Collateralization
Collateralizationn will be required on all financial institution deposits and repurchase
agreements. With the exception of deposits secured with irrevocable letters of credit at
100% of principle plus anticipated accrued interest, the collateralization level shall be
equal to at least one hundred two percent (102%) of (lie aggregate market value of the
deposit or investment including accrued interest less an amount insured by the FDIC or
NCUSIK Evidence of the pledged collateral shall be documented by a custodial or a
master repurchase agreement with the eligible collateral clearly listed in the agreement.
Collateral shall be reviewed at least monthly to assure that the market value of the
securities pledged equals or exceeds (lie related deposit or investment requirement.
Collateral requirements shall be in accordance with both the Public Funds Investment
Act and the Public Funds Collateral Act. Collateral underlying repurchase agreements is
limited to direct obligations of the United States or its agencies and instrumentalities,
The City shall accept a surety bond or the following investment securities as collateral
on financial institution deposits:
■ Direct obligations of the United States or its agencies and instrumentalities. Direct
obligations of this state or its agencies and instrumentalities,
■ Collateralized mortgage obligations directly issued by a federal agency or
instrumentality of the United States and excluding those mortgage -backed
securities considered a high -risk mortgage security as described by Section
2257.0025 of the Government Code.
■ Other obligations that are guaranteed or backed by the full faith and credit of this
state or the United States or their respective agencies and instrumentalities.
■ Obligations of states, agencies, counties, cities and other political subdivisions
rated not less than A or its equivalent.
■ Letters of credit issued by the United States or its agencies and instrumentalities,
Financial institutions serving as depositories will be requi€ed to sign a depository
agreement with the City. The collateralized deposit portion of the agreement shall defino
the City's rights to the collateral in case of default, bankruptcy or closing and shall
establish a perfected security interest in compliance with Federal and State regulations,
including;
I . The agreement must be in writing;
2. The agreement must be executed by the Depository and the City
contemporaneously with the acquisition of the asset;
I The agreement must be approved by the Board of Directors or designated
committee of the Depository and a copy of the meeting minutes must be
delivered to the City; and
d. The agreement must be part of the Depository's "Official Record"
continuously Since its execution.
XIL Safekeeping and Custody
Collateral shall be placed for safekeeping in a custodial account at the, Federal Reserve
Bank or at all institution not affiliated with, a firth pledging collateral acceptable to the
City. All safekeeping arrangements shall clearly define the responsibilities of each party
and outline the steps to be taken in order for the City to gain access to the collateral ill
the event of a "failure". The custodial agreement shall be executed between the City, the
firm pledging the collateral and the custodial institution, as applicable. All safekeeping
receipts shall be delivered to the City and all collateral (whether a pledge or substitution)
shall be formally accepted and released by Investment Officers.
All security transactions, including collateral for repurchase agreements, entered into by
the City shall be conducted oil a delivery -versus -payment (DVP) basis. That is, finds
shall not be wired or paid until verification has been made that the correct security was
received by the safekeeping institution, Financial institution deposits, pool fiends, and
mutual fonds are excluded from this requirement. The investment shall be held by a
third -party safekeeping agent in the name of the City or on behalf of the City.
XIII. Diversification
The City will diversify its investments to eliminate an over -concentration of assets in any
one security type or institution.
Up to ninety percent (90%) par of the portfolio may be invested in direct obligations
of the United States (U.S. Treasury Securities),
Up to seventy percent (70%) par of the portfolio may be invested in U.S. Agency
or Instrumentalities.
Up to one hundred percent (100%) par of the portfolio ,may be invested ill
investment pools for liquidity purposes with no more than eighty percent (80%) par
of the portfolio invested in any one pool.
No more than fifty percent (50%) par of the portfolio may be invested in money
market mutual funds,
XIV, Investinerrt Strategies
Tile City shall maintain a separate investment strategy for each of the fiend types
represented in the portfolio,
A, Pooled Fund Groups
Suitability -- Any investment eligible in the Investment Policy is suitable for
Tooled Fund Groups.
Safe of Principal — All investments shall be of high duality with no
porceived default risk. Market price fluctuations will occur. However,
managing the weighted average days to maturity of each Rind's portfolio to
less than 365 days and restricting the maximum allowable maturity to three
years using file final stated maturity dates of each investment will minimize
the price volatility of the portfolio.
Li uidi — Pooled Fund Groups require the greatest short-term liquidity of
any of the fiend -types, Short-term financial institution deposits, investment
pools and money market Mutual fiinds will provide daily liquidity and may be
utilized as a competitive yield alternative to fixed maturity investments.
Marlretabilrty — Investments with active and efficient secondary markets are
necessary in: the event of an unanticipated cash flow requirement. Historical
market "spreads" between the bid and offer prices of particular security -type
of less than a quarter of a percentage point will define an efficient secondary
market.
Diversification Investment maturities should be staggered throughout the
budget cycle to provide cash flow based oil the anticipated operating heeds of
the City. Diversifying the appropriate maturity structure tip to the three-year
maximum will reduce interest rate risk,
Yield -- Attaining a competitive market yield for comparable investment -types
and portfolio restrictions is the desired objective. The yield of air equally
weighted, rolling three-month Treasury Bill portfolio will be the ininiinutu
yield objective.
B. Debt Service Funds
Suitability Any itivestrnent eligible in the Investment Policy is suitable for
Debt Service Funds.
Safety of P0116VAl — All investments shall be of high quality with no
perceived default risk. Market price fluctuations will occur. However, by
managing Debt Service Funds to not exceed the debt service payment schedule
the market risk of the overall portfolio will be minimized. Tire stated filial
maturity date oil investments purchased shall not exceed the debt service
payment date unless excess Rinds are available. In that case, maximum
maturities shall not exceed two (2) years from the date of purchase.
Liquidity — Debt Service braids have predictable payment schedules.
Therefore, investment maturities should not exceed the anticipated cash flow
requirements. Financial institution deposits, investments pools, and money
market mutual Rinds may provide a competitive yield alternative for short-
terin fixed maturity investments. A singular repurchase agreement may be
utilized if disbursements are allowed in the amount necessary to satisfy any
debt service payment. This investment structure is commonly referred to as a
flexible repurchase agreement.
Marlcetability Investments with active and efficient secondary markets are
not necessary as the event of an unanticipated cash flow requirement is not
probable.
Diversification Market conditions influence the attractiveness of frilly
extending maturity to the next "unfunded" payment date. Generally, if
investment rates are anticipated to decrease over time, the City is best served
by locking in most investments. If the interest rates are potentially rising, then
investing in shorter and larger amounts may provide all advantage. At no time
shall the debt service schedule be exceeded in all attempt to bolster yield.
Yield —Attaining a competitive market yield for comparable investnientwtypes
and portfolio restrictions is the desired objective. The yield of an equally
weighted, rolling three-month Treasury Bill portfolio sliall be the minitnutn
yield objective.
C. Debt Serwiee Reserve Funds
Suitability — Any itrvesttnent eligible in the Investment Policy is suitable for
Debt Service Reserve Funds. Bond resolution and loan documentation
constraints and insurance company restrictions may create specific
considerations in addition to the Investment Policy.
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Safety of Principal All investments shall be of High quality with aro
perceived default risk. Market price fluctuations will occur, However, by
managing Debt Service Reserve Fund maturities to generally not exceed the
call provisions of the borrowing will reduce (lie investment's market risk if the
City's debt is redeemed and (lie Reserve Fund liquidated. No stated filial
investment maturity shall exceed the shorter of the final maturity of the
borrowing or five years. Annual mark -to -market requirements or specific
maturity and average life limitations within the borrowing's documentation
will influence the attractiveness of market risk and influence maturity
extension.
Li Midi -- Debt Service Reserve Funds have no anticipated expenditures.
The Funds are deposited to provide annual debt service payment protection to
the City's debt holder.-,. The funds are "returned" to the City at the final debt
service payment. Market conditions and arbitrage regulation compliance
determine the advantage of investment diversification and liquidity.
Generally, if investment rates exceed the cost of borrowing, the City is best
served by locking in investment maturities and reducing liquidity. If the
borrowing cost carinot be exceeded, then concurrent market conditions will
determine the attractiveness of locking in maturities or investing shorter and
anticipating fixture increased yields.
Marketability — Investments with less active and efficient secondary markets
are acceptable for Debt Service Reserve Funds.
Diversification — Market conditions and the arbitrage regulations influence
the attractiveness of staggering the maturity of fixed rate investments for Debt
Service Reserve Funds. At no time sliall the filial debt service payment date
of the bond issue be exceeded in all attempt to bolster yield.
Yield -- Achieving a positive spread to the applicable borrowing cost is the
desired objective. Debt Service Reserve Fluid portfolio management shall
operate within the limits of the Investment Policy's risk constraints.
D. Natural Gus Account
Suitabili — Any investment eligible in the Investment Policy is suitable for
the Natural Gas Account.
Safety of Principal — All investments shall be of high quality with no
perceived default risk. Market price fluctuations will occur, However,
managing the weighted average days to maturity to less than 365 days and
restricting the maximum allowable maturity to three years using the filial slated
maturity dates of each investment will minimize the price volatility of the
portfolio,
Li midi — Natural Gas Account fiends require moderate short -terra liquidity.
Short -terns financial institution deposits, investment fools and money market
mutual fiends will provide daily liquidity and may be utilized as a competitive
yield alternative to fixed maturity investments,
Marketability — Investments with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requitement, Historical
market "spreads" between the bid and offer prices of a particular security -type
of less than a quarter of a percentage point will define an efficient secondary
market.
)diversification — Investment maturities should be staggered throughout the
anticipated expenditure schedule. Diversifying the appropriate maturity
structure up to the three-year maximum will reduce interest rate risk.
Yield -- Attaining a competitive market yield for comparable investment -types
and portfolio restrictions is the desired objective. The yield of an equally
weighted, rolling three-month Treasury Bill portfolio will be the minimum
yield objective.
XV. 111ternal Control
The City, in conjunction with its annual financial audit, shall perform a compliance audit
of management controls on investments and adherence to the City's Investment Policy.
XVL Performance Standards
The City intends to pursue an active versus a passive portfolio management philosophy.
That is, investments may be sold or redeemed before they mature if market conditions
present an opportunity for the City to benefit from the trade.
Tire investment portfolio shall be designed with the objective of obtaining a rate ofreturn
throughout budgetary and economic cycles that is consistent with risk limitations and
cash flow creeds of the City. "Weighted avefage yield to maturity" shall be the portfolio
performance measurement standard.
XVIL Reporting
Investment Officers shall submit a monthly report to City Council summarizing the
results of the City's investment activity. This report shall include the status of the current
portfolio position, performance, trading activity, interest earnings, and collateral.
A quarterly report shall be submitted to the City Manager, as Chief Execrative Officer,
and the City Council detailing investment transactions and performance for the reporting
period in accordance with State law. The report shall he jointly prepared and signed by
all Investment Officers. It shall include a summary statement prepared for each hand
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type and a detailed listing that states the beginnijig market value, ending Market value
and fully accrued interest for the period, In addition, Investment Officers shall report Oil
adherence to the City's investment strategies as expressed in this Policy.
In conjunction with the annual audit, the quarterly reports sliall be formally reviewed by
the City's independent auditor on an amival basis and the results of the review shall be
reported to City Council.
X'VI11. Investment Policy Adoption
The City's Investment Policy is hereby adopted by resolution of the City Council, The
City Council shall review and approve the Policy on an annual basis. This Policy
selves to satisfy the statutory requirement to define and adopt a formal investment
policy.
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EXHIBIT
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Exhibit A
CITY OF BEAUMONT
Approved List
Broker/Dealers
BR-olm-Mcalci•s:
FUN Financial Capital Markets
Oppenheimer & Co,
RBC Capital Markets
Wells Fargo Securities
PNC Investments LLC
Hilltop Securities
Crews & Associates
is