Res 2012-023 - Laserfiche WebLink

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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. In accordance with the Act, Investment Officers shall attend investment training session no less often 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 by the Investment Committee. 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 of San Marcos may engage in an investment transaction. Investment Committee An Investment Committee consisting of the City Manager, Assistant City Manager, Director of Finance, Assistant Director of Finance /Controller 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, 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). 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 offers on the purchase /sale of every security will be obtained. All investment purchases will be executed in compliance with the Internal Revenue Service's Fair Market Rules. VIII. ETHICS AND CONFLICTS OF INTEREST Investment officers and employees involved in the investment process shall refrain from any personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment officers shall disclose in writing to the City Manager any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any large personal financial /investment positions that could be related to the performance of the City's portfolio Investment officers involved in the investment process with personal business relationships or relatives within the second degree of affinity or consanguinity seeking to sell investments /securities to the City shall disclose the relationship and file a statement with the Texas Ethics Commission and the City Council. Personal business relationships are defined in the Act. IX. AUTHORIZED BROKERIDEALERS AND FINANCIAL INSTITUTIONS The objective of safety requires that the City transact business with financially strong broker /dealers and financial institutions. Therefore, financial broker /dealers and institutions shall be subject to a screening process to eliminate those dealers and institutions that lack economic viability or whose past practices put City of San Marcos Investment Policy Page 3