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<br />I S> C,.- <br /> <br /> <br /> <br />allow the City to take advantage - of potential "positive arbitrage" <br />during the "temporary period" . . a period during which such <br />"profits" are legally exempted from the regulatory limits on such <br />financial profits. As a result, both the total cash availability and <br />investment-earning potential of the City can be significantly <br />enhanced. <br /> <br />B. "Operation shortfalls" and "cash flow needs" can be financed through the <br />use of Tax Anticipation Notes (TANs), Grant Anticipation Notes (GANs) , <br />Revenue Anticipation Notes (RANs) , by borrowing through local banks in a <br />fashion consistent with traditional "fiscal agency" financing, and by <br />I borrowing from the Texas Public Facilities Authority (TPFA). These <br />borrowing techniques will produce funds availability and interest- <br />earning potential similar to that described I Section "A" above. <br /> <br /> <br />C. "Interim" financing instruments, such as Bond Anticipation Notes (BANs), <br />often offer the City not only the opportunity to earn significant legal <br />arbitrage profits, but the flexibility to react in a more timely manner <br />to the ever-changing, long-term debt environment. <br /> <br />The Finance Department will, from time to time, recommend to the City Manager, <br />Mayor, and the City Council various financing opportunities which should be of <br />ultimate financial and operational benefit to the City and its taxpayers. The <br />Department will constantly monitor the City's existing and potential financing <br />alternatives to ensure that full advantage is being taken of the special <br />municipal financing authority available to the City. <br /> <br />VI. LEGAL LIMITATIONS AND AUTHORITIES . <br /> <br />A. The City is governed by Chapter 2256, Public Funds Investment Act of <br />1995. A complete copy ~s attached in Appendix A. A synopsis of.. other <br />state and local statues governing city depositories and banking services <br />is included in Appendix B. <br /> <br />B. The following positions are authorized signatures on all banking <br />transactions. All transactions require two signatures. <br /> <br />1. City Manager <br />! 2. Director of Finance <br />3. Asst Director o£ Finance <br />¡ 4. Budget Officer <br />'- <br /> <br />C. The City Manager has been delegated the authority to invest and deposit <br />City funds under Article IV, Section 4. 01c of the San Marcos City <br />Charter. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />6 <br /> <br /> <br /> <br /> <br /> <br />i <br />