Res 2025-180 adopting a revised Investment Policy for Operating and Reserve Funds

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City designated Investment Officers 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. A contracted non-discretionary Investment Advisor may perform the investment responsibilities under the direction of the Investment Officer(s). 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 Policy and 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 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 Public Fund Investment Act ( "PFIA" ), Investment Officers shall attend investment training session no less than once every two years receiving not less than 8 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 by the City Council and able 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 authorized to issue PFIA training certification. Investment Committee An Investment Committee designated by the City Council consisting of the Finance and Audit committee members, and Accounting Manager is established to review quarterly 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(s) (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 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 when to contract with an Investment Advisor firm depending on market conditions and review/analysis of contract cost versus investment portfolio return. All investment purchases will be executed using the competitive bidding process and settled on a delivery versus payment (DVP) basis. A minimum of three competitive bids/offers shall be obtained to assure competitive value for the City. The City will practice competitive bidding when purchasing all investments to guarantee the highest rate of return for the desired maturity date. City of San Marcos Investment Policy 3 Rev 05.2025