Page 557 - Bedford-FY24-25 Budget

CITY OF BEDFORD
INVESTMENT POLICY

August 22, 2023

It is the policy of the City of Bedford, Texas (the “City”), which includes the City of Bedford Street
Improvement Economic Development Corporation (the “Corporation”), that after allowing for anticipated
cash requirements and giving due consideration to safety, liquidity and yield, all available funds will be
invested in conformance with the Investment Policy which has been developed to conform to the State of
Texas Public Funds Investment Act as amended (the “PFIA” or the “Act”). Throughout this Investment
Policy, the City and Corporation shall be referred to as “Bedford.”

In addition, applicable recommended practices published by the Government Finance Officers Association
(GFOA) have been considered to ensure that Bedford’s investment activities are conducted within the
framework of sound fiscal policy.

I. Scope

This Policy applies to all financial assets of Bedford and serves to satisfy the statutory requirements of the
PFIA to define and approve a formal investment policy. These funds are accounted for in Bedford’s Annual
Comprehensive Financial Report and include:

 General Fund
 Enterprise Funds
 Special Revenue Funds
 Debt Service Funds - including Interest & Sinking Funds & Reserve Funds
 Capital Improvement Funds
 City of Bedford Street Improvement Economic Development Corporation Fund
 Other funds established from time to time

Except for cash in certain restricted and special funds, Bedford may consolidate cash and investment
balances to ease cash management operations and maximize investment earnings. Investment income will
be allocated to the various funds based on their respective participation and in accordance with generally
accepted accounting principles.

II. General Objectives.

The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:

1. Safety. Safety of principal is the foremost objective of the investment program. Investments
shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
The objective will be to mitigate credit risk and interest rate risk.