Page 226 - Colleyville FY19 Budget

The primary objectives, in priority order, of the City’s investment activities
shall be:

Safety: Consistent with the requirement of the Act, safety of principal
is the foremost objective of the City in managing its portfolio. Investments of
the City shall be undertaken in a manner that seeks to ensure the preservation
of capital in the overall portfolio. To attain this objective the City will diversify
its investments by investing funds among a variety of securities offering
independent returns and financial institutions. The City will also take into
account the marketability of the investment if the need arises to liquidate the
investment before maturity.

Liquidity: The City will also maintain sufficient liquidity to provide adequate
and timely working funds.

Diversification: The portfolio shall be diversified by market sector,
institution, and maturity in order to manage market risk.

Return on Investments: The investment portfolio shall be designed with
the objective of obtaining a rate of return throughout budgetary and economic
cycles, commensurate with the investment risk constraints and cash flow
needs. The City investment strategy is passive and the portfolio shall be
designed with the objective of regularly exceeding the weighted average
return on thirteen-week Treasury bills. This is considered a benchmark for
riskless investment transactions, and therefore, is a minimum standard for
the portfolio's rate of return. For bond funds that fall under the arbitrage
provisions of the Tax Reform Act of 1986, the City will attempt to earn
allowable bond yield with market conditions permitting.

Delegation of Authority

The City designates the Investment Officers to be the City Manager, Chief
Financial Officer, and Accounting Manager working jointly to ensure that
investment objectives and day-to-day management activities are accomplished

Ethics and Conflict of Interest

In accordance with section 2256.005 of the Act, all investment Officers and
employees involved in the investment process shall refrain from personal
business activity that could conflict with proper execution of the investment
program, or that could impair their ability to make impartial investment

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