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B. Public Funds Collateral Act

Collateral requirements for all public funds deposits are found in the Public Funds
Collateral Act, Chapter 2257, Texas Local Government Code.

C. Depositories for Municipal Funds

Requirements concerning depositories for municipal funds are found in Chapter 105,
Texas Local Government Code.

IV. INVESTMENT OBJECTIVES & STRATEGIES

The City shall manage and invest the assets of all of its funds with the following
objectives. The safety of the principal invested shall always remain the primary
objective. All investments shall be designed and managed in a manner responsive to
the public trust and consistent with State and Local law.

A. Suitability of Investments. The City maintains portfolios, which utilize four specific
investment strategy considerations, designed to address the unique characteristics of
each fund group represented in the portfolios:

1. Operating Funds

Investment strategies for operating funds and commingled pools containing
operating funds have as their primary objective the assurance that anticipated
cash flows are matched with adequate investment liquidity. The secondary
objective is to create a portfolio structure, which will experience minimal volatility
during economic cycles. This may be accomplished by purchasing high quality,
short-to-medium-term securities which will complement each other in a laddered
or barbell maturity structure. For pooled fund groups, the maximum dollar
weighted average maturity of 365 days or less will be calculated using the stated
final maturity date of each security.

2. Debt Service Funds

Investment strategies for debt service funds shall have as the primary objective
the assurance of investment liquidity adequate to cover the debt service
obligation on the required payment date. Securities purchased shall not have a
stated final maturity date which exceeds the debt service payment date.

3. Debt Service Reserve Funds

Investment strategies for debt service reserve funds shall have as the primary
objective the ability to generate a dependable revenue stream to the appropriate
debt service fund from securities with a low degree of volatility. Securities should
City of Haslet Financial Policy

Haslet Adopted Budget FY 2024-2025 322