Page 325 - CityofHasletFY25AnnualBudget

be of high quality and, except as may be required by the bond ordinance specific
to an individual issue, of short to intermediate-term maturities. Volatility shall be
further controlled through maturity and quality range, without paying premium, if
at all possible. Such securities will tend to hold their value during economic
cycles.

Special Project or Special Purpose Funds

Investment strategies for special projects or special purpose fund portfolios will have as
their primary objective to assure that anticipated cash flows are matched with adequate
investment liquidity. These portfolios should include at least 10% in highly liquid
securities to allow for flexibility and unanticipated project outlays. The stated final
maturity dates of securities held should not exceed the estimated project completion
date.

B. Safety

The primary objective of the City's investment activity in all funds is the preservation and
safety of capital in the overall portfolio. Each investment transaction shall be conducted
in a manner to avoid capital losses, whether they be from securities default or erosion of
market value.

C. Liquidity

The City’s investment portfolio for all funds shall be structured such that the City is able
to meet all obligations in a timely manner. This shall be achieved by matching
investment maturities with forecasted cash flow requirements and by investing in
securities with active secondary markets.

D. Yield

The City's cash management portfolio of all funds shall be designed with the objective of
regularly exceeding the average rate of return on three-month U.S. Treasury Bills. The
investment program shall seek to augment returns above this threshold consistent with
risk limitations identified herein and prudent investment policies.

E. Risk and Diversification

The City recognizes that investment risks can result from issuer defaults, market price
changes or various technical complications leading to temporary liquidity. Risk is
controlled through portfolio diversification, which shall be achieved by the following
general guidelines:

Risk of issuer default is controlled by limiting investments to those instruments
allowed by the Act, which are described herein.
City of Haslet Financial Policy

Haslet Adopted Budget FY 2024-2025 323