Page 227 - Colleyville FY19 Budget

decisions. Employees shall disclose to the City of Colleyville and Texas Ethics
Commission a statement under the following conditions:

A. If they have a personal business relationship with a business
organization offering to engage in an investment transaction with the
entity. Under the Act, a personal business relationship is defined as:

1. The investment officer owns 10 percent or more of the voting
stock or shares of the business organization or owns $5,000 or
more of the fair market value of the business organization:

2. Funds received by the investment officer from the business
organization exceed 10 percent of the investment officer's gross
income for the previous year; or

3. The investment officer has acquired from the business
organization during the previous year, investments with a book
value of $2,500 or more for the personal account of the
investment officer.

B. If they are related within the second degree by affinity or consanguinity,
as determined by Government code Chapter 573, degrees of
relationship; nepotism prohibition, to an individual seeking to sell an
investment to the City of Colleyville.

Prudence

Investments shall be made with judgement and care – under circumstances
then prevailing – which persons of prudence, discretion, and intelligence
exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the
probable income to be derived.

The standard of prudence to be used by investment officials shall be the
"prudent person", which means the officer may not be an expert but is
obligated to act responsibly and shall be applied in the context of managing
an overall portfolio. Investment officers acting in accordance with written
procedures and exercising due diligence shall be relieved of personal
responsibility 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.

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