Page 311 - City of Colleyville FY22 Adopted Budget

Investment Procedures

The City shall enter the following agreements (if applicable): safekeeping,
repurchase agreements, wire transfer agreements, banking services
contracts, and collateral/depository agreements. These contracts shall include
the explicit delegation of authority to persons responsible for the transactions
involving these agreements. No person except those designated in the
contract may engage in any investment transactions.

In order to create a competitive pricing environment for each investment
transaction, the City shall solicit quotations from multiple investment
providers, authorized broker/dealers or financial institutions, as applicable.
Records will be kept of the quotes offered, transactions accepted, and a brief
explanation of the decision that was made regarding the investment. Money
market mutual fund, money market account and local government investment
pool risk/returns shall also be periodically compared to ensure competitive
performance.

Qualified Broker/Dealers

Annually, the City Council shall review and approve a list of qualified
broker/dealers authorized to engage in investment transactions with the City.
All firms shall answer and submit a Broker/Dealer questionnaire to the City for
evaluation. All personnel in the firms who will be trading or quoting securities
to the City Council must maintain a current Financial Industry Regulatory
Authority (FINRA) license and be registered to deal securities in the State of
Texas. Broker/dealers eligible to transact investment business with the City
shall be presented a written copy of this Investment Policy.

Certification of Business Organizations

The registered principal of any investment pool or discretionary investment
manager seeking to transact investment business with the City shall execute
a written instrument substantially to the effect that the registered principal
has:

• received and reviewed this Investment Policy, and
• acknowledged that the organization has implemented reasonable
procedures and controls in an effort to preclude imprudent investment
activities with the City except to the extent that the authorization is dependent
on an analysis of the makeup of the City’s entire portfolio or requires

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