Page 40 - CityofColleyvilleFY23AdoptedBudget

. No-load mutual funds other than 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.

. Guaranteed investment contracts

. Share certi cates of qualifying credit unions

Effect of Loss of Required Rating

An investment that requires a minimum rating does not qualify as an authorized investment during the period
the investment does not have a minimum rating. The Investment Of cer shall take all prudent measures that
are consistent with the City’s investment policy to liquidate the investment(s) that does not have the minimum
rating (2256.021). In accordance with Section (2256.005(b)), the Investment Of cer shall monitor rating changes
in current investments by keeping a monthly record of ratings issued by three nationally recognized rating
agencies.

Investment Strategy

The investment strategy by type of fund is as follows:

. Operating Funds

The investment strategy for operating fund(s) is to assure that anticipated cash ows are matched with
adequate investment liquidity. A secondary objective is to create a portfolio, which will experience minimum
volatility during economic cycles. These funds shall not have an investment with a stated maturity greater than
two years and the weighted average maturity shall not exceed eighteen months.

. Debt Service Funds

The investment strategy for debt service fund(s) is the assurance of investment liquidity to cover the debt
service obligations on the required payment date. Investments purchased shall not have a stated nal maturity
date which exceeds the corresponding debt service payment date. The weighted average maturity shall not
exceed one year.
. Reserve Funds

The investment strategy for reserve fund(s) is the assurance of investment liquidity adequate to cover the debt
service obligations not funded by debt service funds on the required payment date. Investment of reserve
funds are controlled by their ordinance, resolution or indenture, and Federal and State law. Bond documents
must be examined for each issue, for potential differences with this policy concerning investment instruments,
maximum maturity or average life restrictions, call dates or sinking fund redemptions, and applicable arbitrage
yields and rebate liability. Provisions contained in the bond documents will supersede provisions of this policy.
Weighted average maturity shall be incompliance with bond requirements, as stated.

Reserve funds will be invested using a more conservative approach than the current standard investment
strategy when arbitrage rebate rules require refunding excess earnings. All excess earnings received will be
segregated to allow a proper determination of interest income to be used in the arbitrage calculation.

. Special Project or Special Purpose Funds

City of Colleyville | Budget Book 2023 Page 40