Page 61 - City of Bedford FY20 Approved Budget

c. Liquidity needs of the portfolio require that the investment be sold or redeemed.

III. Standards of Care.

1. Prudence. The standard to be used by Investment Officers shall be the “prudent person”
rule, which states, “investments shall be made with judgment 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.” Investment
Officers acting in accordance with written policies and procedures, and exercising due
diligence, shall be relieved of personal responsibility for an individual investment's credit
risk or market price changes, provided deviations from expectations are reported in a timely
fashion.

2. Ethics and Conflicts of Interest. Investment Officers shall refrain from personal business
activity that could conflict with the proper execution and management of the investment
program, or that could impair their ability to make impartial decisions. Investment Officers
shall disclose any material interests in financial institutions with which they conduct
business. They shall further disclose any personal financial/investment positions that could
be related to the performance of the investment portfolio. Investment Officers shall refrain
from undertaking personal investment transactions with the same individual with whom
business is conducted on behalf of BEDFORD.

An Investment Officer who has a personal business relationship with a depository bank or
with any entity seeking to sell an investment to BEDFORD shall file a statement disclosing
that personal business interest. An Investment Officer who is related within the second
degree of affinity or consanguinity to an individual seeking to sell an investment to
BEDFORD shall file a statement disclosing that relationship. A statement required under
this subsection must be filed with the Texas Ethics Commission and the City Council.

3. Delegation of Authority. Authority to manage and operate the investment program is
granted to the Director of Finance. The Director of Finance shall establish written
procedures and internal controls for the operation of the investment program consistent with
this Investment Policy. Procedures should include, but not be limited to: account
management procedures, cash flow estimation procedures, investment transaction
procedures, authorized broker/dealer selection process, and investment portfolio reporting
requirements. No person may engage in an investment transaction except as provided under
the terms of this Policy and the procedures established by the Director of Finance. The
Director of Finance shall be responsible for all transactions undertaken and shall establish a
system of controls to regulate the activities of the Authorized Investment Officers and
subordinate officials.

4. Authorized Investment Officers.

City Manager
Assistant City Manager

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