Page 39 - CityofColleyvilleFY23AdoptedBudget

d. The investment pool's continued compliance with the remaining provisions of the Public Funds
Investment Act.
e. The eligible investments of the pool are as follows: obligations of the United States or its agencies
and instrumentalities, other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by the United States, fully collateralized repurchase agreements with a
de ned termination date secured by obligations of the United States or its agencies and
instrumentalities, other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by the United States, and SEC registered money market funds authorized by
the Public Funds Investment Act and rated in the highest category by at least one nationally
recognized rating agency, reverse repurchase agreements with a term of no longer than 90 days.
f. Include in its investment policy and/or operating procedures the following information: a description
of eligible investment securities and unacceptable investments, a written statement on investment
policy and objectives, a description of interest calculations, distribution, and treatment of gains and
losses, security safeguarding, valuation collateralization and auditing, and a fee schedule.

. Direct repurchase agreements with primary security dealers or nancial institutions doing business in the
State of Texas having a de ned termination date, and secured by U.S. Government or federal agency
securities, provided that the ownership of collateral for the repurchase agreement is transferred to the
City, and deposited with a safekeeping agent for the duration of the contract and a signed master
repurchase agreement has been executed with the counterparty.

. SEC-registered no-load money market mutual funds with a dollar weighted average portfolio of 90 days or
less whose assets consist exclusively of United States Government Securities whose investment objectives
include seeking to maintain a stable net asset value of $1.00 per share. Investment in mutual funds shall
be limited to a maximum of ten percent (10%) of the City's available funds.

. Certi cate of Deposit Account Registry Service (CDARS) deposited with a certi cate of deposit issued by a
depository institution that has its main of ce or branch of ce in this state that is selected by the investing
entity pursuant to the requirements of Section 2256.010 of the Government Code.

The City is not required to liquidate an investment that was authorized at the time of its purchase.

Unacceptable Investment Instrum ents

The following securities, although authorized by the Public Funds Investment Act, are not eligible investments
for the City:

. Collateralized mortgage obligations and/or obligations of the following structure
a. obligations whose payment represents the coupon payments on the outstanding principal balance
of the underlying mortgagebacked security collateral and pays no principal;
b. obligations whose payment represents the principal stream of cash ow from the underlying
mortgage-backed security collateral and bears no interest;
c. collateralized mortgage obligations that have a stated nal maturity date of greater than 10 years;
and
d. collateralized mortgage obligations the interest rate of which is determined by an index that adjusts
opposite to the changes in a market index.

. Commercial paper

. Banker's acceptances

. Reverse repurchase agreements (Local Government Investment Pools which the City participates in may
engage in reverse repurchase agreements if the term is 90 days or less)

City of Colleyville | Budget Book 2023 Page 39