Page 375 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 11 Municipal Policies
Municipal Investment Policy

The maximum weighted average maturity of the portfolio will be no more than 180
days and the maximum stated maturity of any security will not exceed two years. The
funds are combined for investment purposes but the unique needs of all the funds in
the portfolio are recognized and represented.

Effective cash management is recognized as essential to good fiscal management.
Cash management is defined as the process of managing monies in order to ensure
maximum cash availability. The Town shall maintain a cash management program
which includes timely collection of accounts receivable, prudent investment,
disbursement of payments within invoice terms and the management of banking
services.

IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY
Specific investment parameters for the investment of public funds in Texas are
stipulated in the Public Funds Investment Act, Chapter 2256, Texas Government Code,
the "Act"). The Act is attached as Exhibit A.

The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies
collateral requirements for all public funds deposits. The Collateral Act is attached as
Exhibit B.

The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes
local governments in Texas to participate in a Texas investment pool established
thereunder.

V. DELEGATION OF INVESTMENT AUTHORITY
The Finance Director, acting on behalf of the Council, is designated as the Investment
Officer of the Town and is responsible for all investment management decisions and
activities. The Council is responsible for considering the quality and capability of staff,
investment advisors, and consultants involved in investment management and
procedures. All participants in the investment process shall seek to act responsibly as
custodians of the public trust.

The Investment Officer shall develop and maintain written administrative procedures
for the operation of the investment program which are consistent with this Investment
Policy. Procedures will include safekeeping, wire transfers, banking services contracts,
and other investment related activities.

The Investment Officer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials and
staff.

The Investment Officer shall designate a staff person as a liaison/ deputy in the event
circumstances require timely action and the Investment Officer is not available.

No officer or designee may engage in an investment transaction except as provided
under the terms of this Policy and the procedures established by the Investment
Officer and approved by the Town Manager.

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