Res 2015-134/adopting revised Investment Policies for Operating Funds and Reserve Funds

Home Browse Search

investments. Investments are to be chosen in a manner that promotes diversity by market sector, credit and maturity. The maximum dollar weighted average maturity of the portfolio to accomplish these goals will not exceed eighteen (18) months and will fluctuate dependent on market conditions. VI. DELEGATION OF AUTHORITY Investment Officers Management responsibility for the investment program is hereby delegated to the Director of Finance, the Accounting Manager, and the Cash Management Accountant and they are therefore designated as the Investment Officers under the Act and by resolution of the City Council. The Investment Officer(s) shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Investment Officers who are employees of the City acting in accordance with this standard, written procedures and the Policy and exercising due diligence shall be relieved of personal liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Investment Advisors / Managers acting under contract to the City are not relieved of personal responsibility. Investment advisors / managers under contract to the City may also be designated as Investment Officers by the City Council. A contracted Investment Advisor / Manager will perform the investment responsibilities of the Investment Officer. The investment management firm selected to transact investment business on behalf of the City will be provided a copy of this Policy to assure that they are familiar with the goals and objectives of the investment program. All key investment professionals of the investment management firm will be required to return a signed copy of the Certification by Business Organization substantially in the form provided as Appendix B. The investment management firm, which will act in a fiduciary capacity, must be registered with the Securities and Exchange Commission under the Investment Advisor's Act of 1940. The Investment Advisor / Manager will be required to manage the City's funds in accordance with the laws of the State of Texas, and Investment Policies and procedures established by the City. In accordance with the Act, Investment Officers shall attend an investment training session no less than once every two years receiving not less than 10 hours of instruction relating to investment responsibilities. A newly appointed Investment Officer must attend a training session of at least 10 hours of instruction within twelve months of the date the officer took office or assumed investment officer duties. The investment training sessions shall be provided by an independent source approved and authorized to issue PFIA training certification. For purposes of this Policy, an "independent source" from which investment training shall be obtained shall include a professional organization, an institution of higher education or any other sponsor other than a business organization with whom the City may engage in an investment transaction. Investment Committee An Investment Committee consisting of the City Manager, Assistant City Manager /CFO, Director of Finance, and Accounting Manager is established to review monthly reports and Policy changes as well as advise the City Council on investment matters. The Investment Committee shall, at least annually or as required by market conditions, review, revise, and adopt a list of authorized broker /dealers that may engage in investment transactions with the City based on the annual review of the financial condition and registrations of dealers and institutions conducted by the Investment Officer (in accordance with this Policy). VII. INVESTMENT PROCEDURES The Investment Officer(s) shall establish reasonable commercial written procedures for the operation of the investment program consistent with this Policy. The procedures should include to safekeeping, repurchase agreements, wire transfer agreements, banking service contracts and collateral /depository agreements. No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Investment Officer(s). Investment Committee will make the recommendation City of San Marcos Investment Policy Page 2