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The authorized investment purchased will be of the highest credit quality and marketability
supporting the objectives of safety and liquidity. Securities, when not matched to a specific
liability, will be short term to provide adequate liquidity. The portfolio shall be diversified to
protect against market and credit risk in any one sector.
The maximum weighted average maturity of the portfolio will be no more than 180 days and
the maximum stated maturity of any security will not exceed two years. The funds are
combined for investment purposes but the unique needs of all the funds in the portfolio are
recognized and represented.

Effective cash management is recognized as essential to good fiscal management. Cash
management is defined as the process of managing monies in order to ensure maximum cash
availability. The Town shall maintain a cash management program which includes timely
collection of accounts receivable, prudent investment, disbursement of payments within
invoice terms and the management of banking services.

IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY
Specific investment parameters for the investment of public funds in Texas are stipulated in
the Public Funds Investment Act, Chapter 2256, Texas Government Code, (the "Act"). The
Act is attached as Exhibit A.

The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies collateral
requirements for all public funds deposits. The Collateral Act is attached as Exhibit B.

The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes local
governments in Texas to participate in a Texas investment pool established thereunder.

V. DELEGATION OF INVESTMENT AUTHORITY
The Town Manager or their designee, acting on behalf of the Council, is designated as the
Investment Officer of the Town and is responsible for all investment management decisions
and activities. The Council is responsible for considering the quality and capability of staff,
investment advisors, and consultants involved in investment management and procedures.
All participants in the investment process shall seek to act responsibly as custodians of the
public trust.

The Investment Officer shall develop and maintain written administrative procedures for the
operation of the investment program which are consistent with this Investment Policy.
Procedures will include safekeeping, wire transfers, banking services contracts, and other
investment related activities.

The Investment Officer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials and staff.

The Investment Officer shall designate a staff person as a liaison/deputy in the event
circumstances require timely action and the Investment Officer is not available.

No officer or designee may engage in an investment transaction except as provided under
the terms of this Policy and the procedures established by the Investment Officer and
approved by the Town Manager.

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