Texas Government Code - Section 2256.005 (e) requires annual re-adoption of the City's Investment Policy. The City Council previously re-adopted the Investment Policy at the June 14, 2016, City Council meeting.

Current investment officers for the city are the Chief Financial Officer; the Assistant Chief Financial Officer; and the Controller. The investment officers are required to attend state mandated training once every two years. Training will be required in FY2019.

The City is required to annually review the investment policy and make revisions as needed. The investment policy is now being presented to City Council for re-adoption to reflect the following changes:

Section III:

• Updated language to state that the CFO may delegate day-to-day investment activities to responsible individuals who have received the appropriate training required by the state.
• Updated training requirements to 10 hours for new officers and 8 hours every two years thereafter (PFIA 2256.008).
• Added language regarding substitutions and releases of collateral and required market value of collateral in relation to the investment (PFCA 2257.022 and 2257.024).
• Added language regarding investment officer's responsibilities as they relate to maintaining the public trust.

Section IV:

• Updated language to include fully insured Certificates of Deposit as authorized investments if purchased through a broker or depository institution with a main or branch office in Texas, arranged for deposit in one or more depository institutions, regardless of location, with the appointment of a clearing broker as custodian (PFIA 2256.010).
• Updated language to include specific procedures to follow should an authorized investment in the City's portfolio be rated in a way that would cause it to become an unauthorized investment (PFIA 2256.021).
• Updated investment bids to be required rather than recommended.

Section VI:

• Replaced the term registered principal with qualified representative (PFIA 2256.001).
• Updated the Authorized Broker/Dealers/Financial Institutions/Banks/Investment Pools list as follows:
  • Change: contact person and contact information for Comerica Bank
  • Add: Financial Northeastern/// Add: FTN Financial
  • Add: Pershing, LLC
  • Remove: Coastal Securities

Staff recommends that the City Council adopt a resolution amending the City's Investment Policy governing the investment of municipal funds.

I make a motion to adopt Resolution No. ____________ amending the city's Investment Policy governing the investment of municipal funds.