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<br />E. <br /> <br />The design of investment policies which will allow the City to <br />maximize its interest earnings, while at the same time <br />establishing those policies and procedures which will ensure <br />the total safety of all funds entrusted to the care and <br />control of the Finance Department. <br /> <br />F. <br /> <br />The design and implementation of banking relationships which <br />are both favorable to the City and responsive to the <br />day-to-day requirements of the City's complex financial <br />operations. <br /> <br />G. <br /> <br />The design and implementation of appropriate policies and <br />procedures with regard to the proper and effective use of the <br />City's municipal credit authority. <br /> <br />IV. <br /> <br />CASH INVESTMENT POLICIES AND PROCEDURES <br /> <br />Section 5 of Vernons Texas Civil Annoted Statutes states: "Investments <br />. . shall be made with the exercise of that judgment and care, under <br />circumstances then prevailing, which men of prudence, discretion, and <br />intelligence exercise in the management of their own affairs, not for <br />speculation, but for investment, considering the probable safety' of <br />their capital, as well as the probable income to be derived. If This <br />forces a variety of responsibilities upon the City Manager. These <br />responsibilities include, but are not limited to: the need for prudence <br />and care in the selection of appropriate investment securities; the need <br />for rational criteria for the selection of financial institutions and <br />securities dealers with whom the City conducts business; and a distinct <br />concentration upon the maximization of investment yield within the <br />parameters of the other listed responsibilities. To meet these <br />responsibilities, the Ci.ty Council has established the following <br />policies and procedures for cash investments. <br /> <br />A. <br /> <br />Investment Instruments: <br /> <br />The City Manager, or his designee, shall invest the <br />temporarily idle funds of the City in those investment <br />instruments which are listed below: <br /> <br />1. <br /> <br />Obligations of the United States or its agencies <br />instrumentalities. <br /> <br />and <br /> <br />2. <br />3. <br /> <br />Direct obligations of the State of Texas or its agencies; <br /> <br />Other obligations, the principal of and interest on which <br />are unconditionally guaranteed or insured by the State of <br />Texas or the United States. <br /> <br />4. <br /> <br />Obligations of states, agencies, counties, cities, and <br />other political subdivisions of any. state having been <br />rated as to investment quality by a nationally recognized <br />investment rating firm and having received a rating of <br />not less than A or its equivalent; <br /> <br />3 <br />