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<br />U~ ofBo~¿ ?-.x~ds, C"T"-'lts, e~. . . The City's F'llicy is to ~ ooad pr~, g:¡-¿.'7.ts, re~'c~ s:ur;~'7.g or oili.:-: ::oü-r;::::.-n.z:g
<br />re~'ou.::s for upital e=-~dirur~ oilly. Suc.h revcu.::s are ae~',:-: to b.e u.5-~d to fi.J..¡d Ci¡¡' o¡::,¿rations.
<br />B~~ta.] :;:-'.-~¿ur~. . . Tilt: Ci¡¡' C:::..ar-.:=-. e:,-cablis.b.es tb.~ ii=1. y= a.3 tht: t\.1,'e!ve-montb. pt::icd c-<:::=-_:-.g =~ C.ç:J~ 1.
<br />fun y= b.e"",'~~ :May and July, the City },ú.o.:.g~, a.nalyzes and then 2.J.4'.:.er œ~ie""', submiëS a budget of <:.:.,;..z:;p::::: ,;:',::-...t:...->s
<br />and e=-.-p<:ndirures to the City CoU!lcil. Subs.eqU-..--::J.t!¡., the City Council ....ill hold work s.e.s.sions to discuss a.::d am~d ~e b~er
<br />to COLncic!e ""i6 theu- direction of ~ City. Various public h~-ings may b.e held to comply \l.ith. 5"'::a~ a.::d lc-c.a.l ~C'.:~s. The
<br />City CoWlcil ""ill adopt a budget prlar to &ptemb.er 15. If the Cou.u.cil fails to adopt a budget then the bqet pr~:.t:d to the
<br />Council by the City Manager !;.;::.omes the adop~ budget.
<br />During the r;::,-al y=, budgetaIY coacrol is !!cintained by the monthly re~it:w of cL.--partment.3l appropr:atio'l bala.::c~s. .-\crtci
<br />op.:-racioD..S ~e compared to the amounts set fur..b. in the budget. ~partment:il appropriations c.'ur have nor ~eo. e~~d lap~
<br />at the e::J.d of the fiSC3..1 y=. Tnereíåre, funds thE.c w.:-:e budget:t:d and not used by the d~ent.:; duriag the fis.ca!. y~ are not
<br />ava.ilable for theu- ~ unless appropriated in the e!!..;uing fis.:aJ. y='s budget.
<br /> Th "IE S TMI NT S
<br />Tne City inveS"i.S it.:; funds in inve5crne::J.ts authorÌz-"¿ by Texas law in accordance with investment F'llicies approved OJ' L1e City
<br />Council of the City. Both state law è.!ld the City's in~'estment policies are subject to cha.nge.
<br />~sl Im'esrments. Under CWT~t Texas law, the City is authorized to invest in (I) obligations of the United S:':':es or iëS
<br />in."ü1.!.,.'11enWities, (2) direct obligatioD..S of the State of Texas or its agencies, (3) collateralized mortgage obligations ¿irect!y
<br />is.:."U::d by a ~¿.:-:al agency or tI1.s::rll.'11e::J.tility of the United States, the u'¡lderlying ~c1.1rity for which is g'.J..aranteed bJ' a.:: ag<:ncy
<br />or in.,,-trumcWity of the Ucited States, (4) other obligations, the principal of and interest on which are uncoG¿ition~ll...
<br />guaranteed or L'lSured by the State of Texas or the United Stat~ or its ÍIl.strument.:1!ities, (5) obligations of stJ.tes, ~encie;,
<br />cot1Ilties, citi~, and other political subdivisions of a:1Y state that are rated A or higher by a aationaLIy recognized iavestrn::-...t
<br />rating agency, (6) c........-tificates of L:;-osit that are g1.!.3.ran~d or ÍIl.s1.!!'ed by the Federal Deposit In.s1.!!'3:'.c.e Corpora~c:1. or are
<br />secured a.3 to ?riacipal by obligatioD..S described in the precediag clauses or in any other manner and a.:nount pro~ide¿ by law
<br />íòr City d::;-osits, (7) fully collat~ed repurchas.t: agr~~ts that æ...e a defined termination d.:1t<:, are fully =::red by
<br />obligations ~-ribed in clause (I), è.!ld are plac..."¿ through primary gov=ent =1.1rities de4!er or a 0a.'L1.: domicU.;:¿ in the
<br />Sca~ of Texas, (3) a bankers' w:-"?tances v..-ith th.:: r::maining t~ of 270 days or less, if the short-t= obliga~()r:s of th..::
<br />=---pting ~ or its parent are rated at least A-lor pol or the equivalent by at l~t one n~tion:ll1y recog:tÏzed c-.e;::'¡t rating
<br />agency, (9) cc:amercia! pa~ th.1t is rat::d at leas! A-lor pol or the equi~'alent by eith.er (a) "",,0 nationally w:oga2ed credit
<br />rating agencies or (ò) one n.ation.ally recognized credit rating agency if th.:: pap<:!" is fully secured by an me:vocabIe Ie"er of
<br />credit is.:.-ued by a U.S. or 5"'::.ate ba:1k, (to) nl>-lo.aci money rn.::,¡'ket mutual funds registered with the Securities and Ex:h.:J..'ge
<br />Com¡russion 6at have a dollar wdghted average porüõlio rroturity of 90 days or less and include: in their investment objectives
<br />the mainten.a.:..:.e of a stable 'let as.s.et value of S 1 ¡òr =h share, (11) oonds issued, assumed, or guara.:lteed by the St.J.~ of
<br />Is.-a.:::l, and (12) any other invest::::lents authorized by the: Public Funds Inve:stment Act a.3 a.":1en¿ed., Ciu;¡ter 2256, Te:<.a.s
<br />Gov=e::J.t Coce, Tne City may ia~'est in such obligatioD..S directly or through go,'emment i..-west.'11e-:1t pc-ols tiut iaves: solely
<br />in such obligations. It is further, pro~'Íé.ed, howevC', r.£:at any in~'1: e:!rnÏ.-¡gs on Bond pTCC=is which are required to \:.:: .e"-l~ to
<br />the United S~ of Ameno in cr'~ :.:J ¡:-revent the: Bonds from 1xÜ':g a.-bitrage oonès sh.::ill t.; so ["'..~ and net consid::r=:! i!.5 :.,ce-.e:s-.
<br />~_tng.s.
<br />Innstlnent Policies. Unck....... Texas I.=.w, the City is required to invest it.:; funds under v.TÍtte-:1 L-west.rnent policies trot ?-'~":1.:J.."'¡ly
<br />=påasize sa:"'ety of principal arId liquidity and tiut adc!ress investment diversifiotion., yield, maru.rit'j, a.,d the q~i:y a.,d
<br />capability of inv~stme::J.t manag=cr, and all City funds mus! b.e invt:std in invc:st.:n;:nt.:; th~t protect p~~'ci;¡a1, ar~ ~=.siste-:1t
<br />....'Íth the o¡:<:",,-::ng requir=cts of the City, and ¡'Íeld the hig.'lest possible rat<: of return. Undc:r Te:<.a.s law, Cit'j L'w:::s~"ae-:1ts
<br />mu,,""! be m~e ""'Íth judgment a.,d c.::e, under prevailing circu..--:.stances, t.'lat a p<:rson of prudenc.::, discretion, a.,d ~:e[igence
<br />would exc:rcise ia the ::nan.Jg=c:nt of the p.::rsoo.'s ow~ affairs, aot tõr Sp<:(;ulation., but tõr investment, co:¡.sidering t.'le ;:robabk
<br />safety ofc.:.pital a.,d the probable income to be L...-ived." No person may invest City funds \I.'Ít.'lout e:\-;Jress \l.TÍc-::c at:t.'1ority
<br />.5:om t.'le CiC'j Council or chief ex<:cucive officer of tIle City.
<br />The City's ;¡.-'.:;¡ary"':invC:S!ment ooj<:ctive is to pr~ser;~ principal. Tht: City utilized cash flow nc:ed.s to ¿ivcrsu:; ?O,,-,õ¡io
<br />rnai:Ur'Íties <!.:ld ¡;¡aÏ.'1t3.Ì.:l sur1ïcie::J.t liquidity. Risk: or loss is ffi.3.naged by restricti.¡¡g maC'..:rÏty Ic:ngth to tv..o or t.'l:'e-:: ye.:lf3
<br />de-;.-ending u¡:-cn the C)~ of funds iaves:ed. Tne Dir<:ctor of Fin2..,cc: has be-::::n deleg:¡ted re:sponsibilit'j rer the =a.g=ent of
<br />the City's fu."l.:.s.
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