Page 38 - CityofColleyvilleFY23AdoptedBudget

diligence shall be relieved of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion and appropriate action is
taken to control adverse developments.

Investment of cers shall notify the City Council in writing of any con icts of interest, as de ned by the Public
Funds Investment Act, no later than the next regularly scheduled Council meeting.

It is the policy of the City that the Investment Of cers perform their duties in accordance with the policies and
procedures set forth in this policy. The Investment Of cers of the City (City Manager, Chief Financial Of cer and
Accounting Manager) shall be personally indemni ed in the event of investment loss provided the Investment
Policy is followed.

Internal Controls

The Chief Financial Of cer and Accounting Manager shall establish a system of written internal controls which
shall be reviewed annually by the independent auditor. The controls shall be designed to prevent the loss of
public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions.

Permissible Instruments

The following is a list of permissible instruments as authorized by the 70th Texas Legislature in the Public
Funds Investment Act (TEX. REV. CIV. STAT. ANN. ACT 842A-2) and amended by the 71st Legislature:

. Obligations of the United States or its agencies or instrumentalities;

. Direct obligations of the State of Texas or its agencies;

. Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the
State of Texas or the United States or its agencies or instrumentalities;

. Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been
rated as to investment quality by nationally recognized investment rating rm and having received a
rating of not less than "A" or its equivalent;

. Certi cates of deposit issued by state and national depository institutions that have its main of ce or
branch of ce in this state that are:
a. Guaranteed or insured by the Federal Deposit Insurance
Corporation, FSLIC or its successors; or
b. Secured by obligations that are described by subdivisions (1) through (4) of this subsection, which are
intended to include all direct federal agency or instrumentality issued mortgage backed securities,
and which have a market value of not less than the principal amount of the certi cates or in any
other manner and amount provided by law for deposits of the investing entities;

. Invest in a local government investment pool as authorized by the Interlocal Cooperation Act (TEX. REV.
CIV. STAT. ANN. ACT. 4413 (32c), as amended, and the Public Funds Investment Act (TEX. REV. CIV. STAT.
ACT. 842a-2), as amended. The investment pool must comply with the requirements of the Public Funds
Investment Act, as amended, as follows:
a. The investment pool maintains a stable asset value of one dollar as de ned in the Public Funds
Investment Act;
b. The investment pool maintains a AAA, or AAAm rating by one of the nationally recognized rating
agencies;
c. The investment pool's maximum average dollar weighted maturity does not exceed 90 days; and

City of Colleyville | Budget Book 2023 Page 38