Res 2020-070/adopting revised Investment Policies for Operating Funds and Reserve Funds

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budgetary and economic cycles, commensurate with the investment risk constraints and cash flow needs of the City. A benchmark for performance of the portfolio will be included in the quarterly reports based on the portfolio's maximum weighted average maturity of 360 days. The periodic total return of the six-month U.S. Treasury Bill will be used as the City's operating benchmark. XVI. REPORTING The Investment Officer(s) shall provide the Investment Committee and City Council quarterly investment reports as required by the Act. The reports will reflect both detail and summary information enabling the reader to determine the value and risk associated with the portfolio. Market values for the report will be derived from an independent source. A management report will be included with the quarterly investment report. The management report should include comments on the fixed income markets and economic conditions, discussions regarding diversification, allocation restrictions on investments, possible changes in the portfolio structure going forward and thoughts on investment strategies. XVII. CASH MANAGEMENT PROGRAMS AND ACTIVITIES The Department of Finance is committed to the overall success of the City's cash management programs. These programs address a variety of cash management issues, including: 1. The design and implementation of reliable and effective cash flow forecasting methodologies to assist Finance Department personnel and Investment Officer(s) in the determination of the amounts of cash available for investment, the time period for which the funds may be invested with a reasonable level of confidence, and a measure of the volatility of specific cash forecasts, which will allow viable determination of the required liquidity. 2. The design and implementation of appropriate "revenue -acceleration programs", aimed at enhancing the speed at which monies are collected and deposited by the City and the elimination of bad debt expense/write-offs. 3. The design and implementation of suitable "controlled disbursement" programs, which will ensure that the City's expenses are met in timely manner, but not in such a way as to jeopardize the earning capacity of the City's portfolio. 4. The utilization of modern and efficient techniques and technology for the physical movement of money, taking advantage of technological and operational procedures. 5. The design and implementation of banking relationships which are both favorable to the City and responsive to the day-to-day requirements of the City's complex financial operations. 6. The design of investment policies and procedures to ensure the total safety of all funds while allowing the City to maximize its interest earnings. 7. The design and implementation of appropriate policies and procedures with regard to the proper and effective use of the City's municipal credit authority. XVIII. INVESTMENT POLICY ADOPTION The City's Investment Policy shall be annually reviewed and adopted by resolution of the City Council. Any modifications made thereto must be noted in the approving Resolution. City of San Marcos Investment Policy