Title
Consider a resolution adopting an updated investment policy and strategy for the investment of City funds.
Body
Item Summary:
The Investment Policy of the City of Round Rock, Texas, is adopted in accordance with Chapter 2256, Texas Government Code, the Public Funds Investment Act. This policy establishes guidelines for the investment officers with regard to how City funds will be invested. This policy also establishes guidelines for periodic review and reporting of the investments.
The primary objective of this policy is to preserve capital and maintain the safety of principal in the portfolio.
The Public Funds Investment Act requires governmental entities to submit their investment policy to their governing body for review and approval at least on an annual basis. The City has had an adopted investment policy for several years and has updated it periodically to address changes in laws and policy. Changes this year are recommended by the City's investment advisor and investment officers to provide more clarity to the broker/dealers on the types of investments along with their specific maximum maturity, the addition of FDIC insured interest bearing accounts, the exclusion of prime funds for Money Market Mutual funds due to SEC changes in these types of funds, additional brokers to the authorized broker/dealer listing, and some other minor clarifications.
Recommended Action
Staff recommends approval.