Page 66 - City of Bedford FY20 Approved Budget

VII. Reporting.

1. Methods. The Director of Finance shall prepare an investment report, at least quarterly,
including a management summary that provides an analysis of the status of the current
investment portfolio and transactions made over the last quarter. This management summary
will be prepared in a manner, which will allow BEDFORD to ascertain whether investment
activities during the reporting period have conformed to the Investment Policy. The report shall
be provided to the City Council. The report will comply with the requirements of the PFIA.

In conjunction with the annual audit, the quarterly reports shall be formally reviewed by an
independent auditor, and the result of the review shall be reported to the City Council by that
auditor.

2. Performance Standards. The investment portfolio will be managed in accordance with the
parameters specified within this Policy. The portfolio should obtain a market average rate of
return during a market/economic environment of stable interest rates. A series of appropriate
benchmarks shall be established against which portfolio performance shall be compared on a
regular basis. “Weighted average yield to maturity” shall be the portfolio performance
measurement standard.

3. Market Valuation. The market value of the portfolio shall be calculated at least quarterly
and a statement of the market value of the portfolio shall be issued at least quarterly. The source
of pricing used to calculate market value will be sources independent from the transaction.

4. Credit Rating. Not less than quarterly, the Investment Officers will monitor the credit rating
for each held investment that has a PFIA required minimum rating. Any Authorized Investment
that requires a minimum rating does not qualify during the period the investment does not have
the minimum rating. Prudent measures will be taken to liquidate an investment that is
downgraded to less than the required minimum rating.

VIII. Policy Considerations

1. Exemption. Any investment currently held that does not meet the guidelines of this Policy
shall be exempted from the requirements of this Policy. At maturity or liquidation, such monies
shall be reinvested only as provided by this Policy.

2. Annual Review and Amendments. The City Council shall annually review this Policy and
shall adopt a written instrument stating its review and recording any changes. Any changes
must be approved by the Investment Committee prior to consideration by the City Council.

IX. Selection of Depositories

1. Request for Application Process. Primary Depositories shall be selected through
BEDFORD’s banking services procurement process, which shall include a formal Request for
Application (RFA) issued in compliance with applicable State law (Chapter 105, State of Texas
Local Government Code). This contract can be extended as per the RFA specifications. In

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