Page 37 - CityofColleyvilleFY23AdoptedBudget

a variety of securities offering independent returns and nancial 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 suf cient 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 ow 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 Of cers to be the City Manager with overall responsibilities to see that
investment objectives are accomplished and the Chief Financial Of cer and Accounting Manager with the
speci c day-today performance of managing the funds of the City.

Ethics and Con|ict of Interest

All investment Of cers and employees involved in the investment process shall refrain from personal business
activity that could con ict 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 de ned as:

. The investment of cer owns 10 percent or more of the voting stock or shares of the business
organization or owns $5,000 or
more of the fair market value of the business organization:

. Funds received by the investment of cer from the business organization exceed 10 percent of the
investment of cer's gross income for the previous year; or

. The investment of cer has acquired from the business organization during the previous year,
investments with a book value of $2,500 or more for the personal account of the investment of cer.

B. If they are related within the second degree by af nity or consanguinity, as determined by Chapter 573
V.A.T.C.S. to an individual seeking to sell an investment to the City of Colleyville.

Prudence

Investments shall be made with judgement and care – under circumstances then prevailing – which persons of
prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but
for investment, considering the probable safety of their capital as well as the probable income to be derived.

The standard of prudence to be used by investment of cials shall be the "prudent person", which means the
of cer may not be an expert but is obligated to act responsibly and shall be applied in the context of managing
an overall portfolio. Investment of cers acting in accordance with written procedures and exercising due

City of Colleyville | Budget Book 2023 Page 37