Res 2012-023 - Laserfiche WebLink

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City's cash flow requirements throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio. V. Strategy The structure and management of the pooled City portfolio will address the varying needs, goals and objectives of each fund. Investment strategies for General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, and Trust and Agency Funds are designed to assure that anticipated cash flows are matched with adequate liquidity in each fund. Secondaril the strategy is to create a portfolio structure that will experience minimal volatility during economic cycles Both may be accomplished by purchasing high quality, short-to- medium term securities that will complement each other in a laddered structure and assure the marketability of those investments should liquidity needs arise. 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 360 days, dependent on market conditions. Investment strategies will address the unique needs for Debt Service Funds to primarily assure investment liquidity adequate to cover the debt service obligation for each consecutive debt service payment. Investments shall progressively fund each succeeding debt service. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability to the City for investment use. The City shall maintain a comprehensive cash management program that includes collection of accounts receivable, prudent investment of its available cash, disbursement of payments in accordance with invoice terms and the management of banking services. VI. DELEGATION OF AUTHORITY Investment Officers Management responsibility for the investment program is hereby delegated to the Director of Finance, the Assistant Director of Finance /Controller, and the Accounting Manager, 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 Managers acting under contract to the City are not relieved of personal responsibility. Investment managers under contract to the City may also be designated as Investment Officers by the City Council. A contracted Investment 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 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. 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 City of San Marcos Investment Policy Page 2