Page 405 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Investment Policy

• Obligations of the United States Government, its agencies and instrumentalities,
not to exceed two (2) years to stated maturity and excluding mortgage backed
securities;

• Fully insured or collateralized certificates of deposit from a bank doing business in
the State of Texas and under the terms of a written depository agreement with that
bank, not to exceed one year to stated maturity;

• No-load, SEC registered money market mutual funds. No more than 80% of the
entity's monthly average balance may be invested in money market funds

• Public Funds interest bearing accounts; and

• Constant dollar, AAA-rated Texas Local Government Investment Pools as defined by
the Public Funds Investment Act.

If additional types of securities are approved for investment by public funds by state
statute, they will not be eligible for investment until this Policy has been amended and the
amended version adopted by the Council.

Delivery versus Payment - All investment security transactions shall be conducted on a
delivery versus payment (DVP) basis to assure that the Town has control of its assets
and/or funds at all times.

IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
Securities broker/dealers may be primary or regional broker/dealers and will meet other
criteria as determined by the Investment Officer including state registration and
completion of a Town Broker/Dealer questionnaire (attached as Exhibit D). The following
criteria must be met by authorized firms.
• annual provision of an audited financial statement,
• proof of certification by the National Association of Securities Dealers (NASD)
• proof of current registration with the Texas State Securities Commission, and
• completion of the Town's broker/dealer questionnaire.

Every bank and broker/dealer with whom the Town transacts business will be provided a
copy of this Investment Policy to assure that they are familiar with the goals and objectives
of the investment program. The firm will be required to return a signed copy of the
Certification Form (attached as Exhibit C) certifying that the Policy has been received and
reviewed and only those securities approved by the Policy will be sold to the Town.

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