Page 128 - CityofBurlesonFY26Budget

The City utilizes a “buy and hold” portfolio strategy. Maturity dates are matched with cash
flow requirements and investments are purchased with the intent to be held until maturity.
However, investments may be liquidated or redeemed prior to maturity for the following
reasons:

 An investment with declining credit may be liquidated early to minimize loss of
principal, or
 Cash flow needs of the City require that the investment be liquidated.

Investments

City funds governed by this Investment Policy may be invested in the instruments described
below, all of which are authorized by the PFIA. Investment of City funds in any instrument or
security not authorized for investment under the PFIA is prohibited. The City will not be
required to liquidate an investment that becomes unauthorized subsequent to its purchase.

I. Authorized

a. Obligations, including letters of credit, of the United States or its agencies and
instrumentalities, including the Federal Home Loan Banks.

b. Direct obligations of the State of Texas or its agencies and instrumentalities.

c. Other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of
Texas or the United States or their respective agencies and instrumentalities,
including obligations that are fully guaranteed or insured by the Federal Deposit
Insurance Corporation (FDIC) or by the explicit full faith and credit of the United
States.

d. Obligations of states, agencies, counties, cities, and other political subdivisions of
the State of Texas rated as to investment quality by a nationally recognized
investment rating firm not less than A or its equivalent.

e. Financial institution deposits that, are issued by a state or national bank or credit
union that a) has its main office or a branch office in Texas and is guaranteed or
insured by the FDIC, NCUSIF, or their successors, b) is secured by obligations in a
manner and amount provided by law and this Investment Policy for deposits of
the City, or c) is placed in a manner that meets the requirements of the PFIA.

f. Fully collateralized direct repurchase agreements with a defined termination date
secured by obligations of the United State or its agencies and instrumentalities.
These shall be pledged to the City, held in the City’s account, and deposited at the
time the investment is made with the City or with a third party selected and

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