Title
Consider a resolution adopting an updated Investment Policy & Strategy for the City.
Body
Investing and reporting of the City’s cash and investments are governed by the City’s investment policy and the General Government Code, Chapter 2256 - referred to as the Public Funds Investment Act (PFIA). The PFIA requires governmental entities to submit their investment policies to the governing body for review and updates, if needed, at least annually.
The objectives of the City’s investment portfolio remain, in order of importance and in accordance with the PFIA: (1) safety of principal; (2) liquidity and (3) yield.
The attached policy document has been substantially reorganized for ease of use. All changes to the policy, other than formatting and reorganization, have been highlighted in red. The complete prior policy is also included for reference.
The major changes include:
1. Scope. Added language to clarify that the Round Rock Transportation and Economic Development Corporation is covered by this policy.
2. Investment Objectives and Strategy. Duplicative language has been eliminated Strategy statements by fund-type has been added for clarification.
3. Diversification by Investment Type. The security type limitations have been adjusted to meet industry standards and provide better management in the current investment market. Diversification by maturity dates and by fund types is as important as these designations.
In addition, various minor clarifications have been made. This policy has also been reviewed by the City’s investment advisor, with their edits included as well.
Staff will provide a brief overview of the policy changes and a year-end report on the investments at the Council meeting.
Recommended Action
Staff recommends approval