Page 279 - Colleyville FY21 Budget

a variety of securities offering independent returns and financial institutions.
The City will also take into account the marketability of the investment if the
need arises to liquidate the investment before maturity.

Liquidity: The City will also maintain sufficient liquidity to provide adequate
and timely working funds.

Return on Investments: The investment portfolio shall be designed with the
objective of obtaining a rate of return throughout budgetary and economic
cycles, commensurate with the investment risk constraints and cash flow
needs. The City investment strategy is passive and the portfolio shall be
designed with the objective of regularly exceeding the weighted average
return on thirteen-week Treasury bills. This is considered a benchmark for
riskless investment transactions, and therefore, is a minimum standard for
the portfolio's rate of return. For bond funds that fall under the arbitrage
provisions of the Tax Reform Act of 1986, the City will attempt to earn
allowable bond yield with market conditions permitting.

Delegation of Authority

The City designates the Investment Officers to be the City Manager with
overall responsibilities to see that investment objectives are accomplished and
the Chief Financial Officer and Accounting Manager with the specific day-to-
day performance of managing the funds of the City.

Ethics and Conflict of Interest

All investment Officers and employees involved in the investment process shall
refrain from personal business activity that could conflict with proper
execution of the investment program, or that could impair their ability to make
impartial investment decisions. Employees shall disclose to the City of
Colleyville and Texas Ethics Commission a statement under the following
conditions:

A. If they have a personal business relationship with a business
organization offering to engage in an investment transaction with the
entity. Under the Public Funds Investment Act, a personal business
relationship is defined as:

1. The investment officer owns 10 percent or more of the voting
stock or shares of the business organization or owns $5,000 or

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