Page 125 - CityofBurlesonFY26Budget

requirements for ongoing operations, thereby avoiding the need to liquidate
investments prior to maturity;
 Invest funds primarily in certificates of deposit, shorter-term securities,
financial institution deposits, or money market mutual funds and local
government investment pools whose investment objectives include
maintaining a stable $1.0000 net share value; and
 Diversify maturities and stagger purchase dates to minimize the impact of
market movements over time.

Liquidity

The investment portfolio shall remain sufficiently liquid to meet all operating requirements
that may be reasonably anticipated. This is accomplished by structuring the portfolio so that
investments mature concurrent with cash needs to meet anticipated demands. Because all
possible cash demands cannot be anticipated, a portion of the portfolio will be invested in
cash-equivalent options that offer same-day liquidity. In addition, any security positions will
consist of securities with active secondary or resale markets.

Public Trust

All participants in the City’s investment process shall seek to act responsibly as custodians of
the public trust. Investment Officer(s) shall avoid any transaction that might impair public
confidence in the City’s ability to govern effectively.

Yield (Optimized Interest Earnings)

The investment portfolio shall be designed with the objective of attaining a market rate of
return throughout budgetary and economic cycles, taking into account the City’s investment
risk constraints and liquidity needs. Return on investment is of secondary importance
compared to the safety and liquidity objectives described above.

V. RESPONSIBILITY AND CONTROL

Delegation of Authority

In accordance with the PFIA, the City Council designates the Deputy City Manager, Finance
Director, Deputy Finance Director, and Chief Accountant as the City’s Investment Officer(s).
An Investment Officer is authorized to execute investment transactions on behalf of the City.
No person may engage in an investment transaction of the management of City funds except
as provided under the terms of this Investment Policy as approved by the City Council. The
investment authority granted to the Investment Officer(s) is effective until rescinded by the
City Council.

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