Page 61 - City of Bedford FY21 Budget

CITY OF BEDFORD
INVESTMENT POLICY

September 22, 2020

It is the policy of the City of Bedford, Texas (the “City”), which includes the City of Bedford Street
Improvement Economic Development Corporation (the “Corporation”), that after allowing for
anticipated cash requirements and giving due consideration to safety, liquidity and yield, all
available funds will be invested in conformance with the Investment Policy which has been
developed to conform to the State of Texas Public Funds Investment Act as amended (the “PFIA” or
the “Act”). Throughout this Investment Policy, the City and Corporation shall be referred to as
“BEDFORD.”

In addition, applicable recommended practices published by the Government Finance Officers’
Association (GFOA) have been considered to ensure that BEDFORD’s investment activities are
conducted within the framework of sound fiscal policy.

I. Scope

This Policy applies to all financial assets of BEDFORD and serves to satisfy the statutory
requirements of the PFIA to define and approve a formal investment policy. These funds are
accounted for in BEDFORD’s Comprehensive Annual Financial Report and include:

• General Fund
• Enterprise Funds
• Special Revenue Funds
• Debt Service Funds - including Interest & Sinking Funds & Reserve Funds
• Capital Improvement Funds
• City of Bedford Street Improvement Economic Development Corporation Fund
• Other funds established from time to time

Except for cash in certain restricted and special funds, BEDFORD may consolidate cash and
investment balances to ease cash management operations and maximize investment earnings.
Investment income will be allocated to the various funds based on their respective participation and
in accordance with generally accepted accounting principles.

II. General Objectives.

The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:

1. Safety. Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in

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