Page 310 - City of Colleyville FY22 Adopted Budget

stated.

Maturity limitations for single issue reserve funds shall not exceed the sooner
of five (5) years, the call provisions of the bond ordinance, or the final maturity
of the bond issue.

Reserve funds may be subject to arbitrage rebate rules requiring refunding of
excess earnings. All excess earnings received will be segregated to allow a
proper determination of interest income to be used in the arbitrage
calculation.

(4) Special Project or Special Purpose Funds

The investment strategy for special projects or special purpose fund
portfolio(s) will have as their primary objective to assure that anticipated cash
flows are matched with adequate investment liquidity. The City’s final
maturity dates of securities held shall not exceed the estimated project
completion date. Funds in excess of defined construction payment schedules
shall be limited to a maximum final maturity date of three years.

Diversification

The City will attempt to limit the risk of loss through diversification of its
portfolio and to achieve the aforementioned investment strategies by
diversification of instruments across various maturities.

Diversification of Portfolio by Instrument Maximum Percent

U.S. Treasury Obligations (Bills, Notes and Bonds – direct purchase), 100%

U.S. Government Agency Securities,
and Instrumentalities of Government
Sponsored Corporations (direct purchase) 75%

Certificates of Deposit (CD's – direct purchase) 75%

Local Government Investment Pools 75%

Repurchase Agreements (direct purchase) 15%

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