Page 41 - CityofColleyvilleFY23AdoptedBudget

The investment strategy for special projects or special purpose fund portfolio(s) will have as their primary
objective to assure that anticipated cash ows are matched with adequate investment liquidity. The city’s nal
maturity dates of securities held shall not exceed the estimated project completion date. Funds in excess of
de ned construction payment schedules shall be limited to a maximum nal maturity date of three years.

Maturity limitations for single issue reserve funds shall not exceed the sooner of ve (5) years, the call provisions
of the bond ordinance, or the nal maturity of the bond issue.

Annually, the City Council shall formally review the Investment Policy and investment strategy contained with
the Policy and record in writing that it has reviewed the Policy and record any changes to either the policy or
strategy.

A. Diversi cation

The City will attempt to limit the risk of loss through diversi cation of its portfolio and to achieve the
aforementioned investment strategies by diversi cation of instruments.
Diversi cation by Instrument of Portfolio Maximum Percent

U.S. Treasury Obligations (Bills, Notes and Bonds), 100%

U.S. Government Agency Securities, and Instrumentalities
of Government
Sponsored Corporations 75%

Certi cates of Deposit (CD's)
Commercial Bank's 75%

Local Government Investment Pool 75%

Certi cate of Deposit Account Registry Service (CDARS) 75%

Tri-Party Repurchase Agreement 75%

SEC registered, no-load mutual fund 10%

Investment Procedures

The City shall enter the following agreements (if applicable): safekeeping, PSA repurchase agreements, wire
transfer agreements, banking services contracts, and collateral/depository agreements. These contracts shall
include the explicit delegation of authority to persons responsible for the transactions involving these
agreements. No person except those designated in the contract may engage in any investment transactions.

On all funds invested in instruments as listed in "Permissible Investments" numbers one through ve, oral bids
shall be requested from at least two broker/dealers or national banks. The City will accept the bid that provides
the highest rate of return within the maturity required and within the parameters of this policy. Records will be
kept of the bids offered, bids accepted, and a brief explanation of the decision that was made regarding the
investment.

Quali ed Institutions

Annually, the City Council shall approve four nancial institutions for investment purposes as recommended by
the Chief Financial Of cer. All rms shall answer the Broker/Dealer questionnaire (Appendix A) and submit their
most recent audited nancial statements to the City Council for evaluation of credit worthiness. All personnel in

City of Colleyville | Budget Book 2023 Page 41