Page 564 - Bedford-FY24-25 Budget

VII. Reporting.

1. Methods. The Director of Finance shall prepare an investment report, at least quarterly, including
a management summary that provides an analysis of the status of the current investment portfolio and
transactions made over the last quarter. This management summary will be prepared in a manner,
which will allow Bedford to ascertain whether investment activities during the reporting period have
conformed to the Investment Policy. The report shall be provided to the City Council. The report will
comply with the requirements of the PFIA.

In conjunction with the annual audit, the quarterly reports shall be formally reviewed by an
independent auditor, and the result of the review shall be reported to the City Council by that auditor.

2. Performance Standards. The investment portfolio will be managed in accordance with the
parameters specified within this Policy. The portfolio should obtain a market average rate of return
during a market/economic environment of stable interest rates. A series of appropriate benchmarks
shall be established against which portfolio performance shall be compared on a regular basis.
“Weighted average yield to maturity” shall be the portfolio performance measurement standard.

3. Market Valuation. The market value of the portfolio shall be calculated at least quarterly and a
statement of the market value of the portfolio shall be issued at least quarterly. The source of pricing
used to calculate market value will be sources independent from the transaction.

4. Credit Rating. Not less than quarterly, the Investment Officers will monitor the credit rating for
each held investment that has a PFIA required minimum rating. Any Authorized Investment that
requires a minimum rating does not qualify during the period the investment does not have the
minimum rating. Prudent measures will be taken to liquidate an investment that is downgraded to less
than the required minimum rating.

VIII. Policy Considerations.

1. Exemption. Any investment currently held that does not meet the guidelines of this Policy shall
be exempted from the requirements of this Policy. At maturity or liquidation, such monies shall be
reinvested only as provided by this Policy.

2. Annual Review and Amendments. The City Council shall annually review this Policy and shall
adopt a written instrument stating its review and recording any changes. Any changes must be
approved by the Investment Committee prior to consideration by the City Council.

IX. Selection of Primary Depositories - Request for Application Process.

Primary Depositories shall be selected through Bedford’s banking services procurement process,
which shall include a formal Request for Application (RFA) issued in compliance with applicable
State law (Chapter 105, State of Texas Local Government Code). This contract can be extended as
per the RFA specifications. In selecting primary depositories, the credit worthiness of institutions
shall be considered, and the Director of Finance shall conduct a comprehensive review of prospective
primary depositories’ credit characteristics and financial history.

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