Page 129 - CityofBurlesonFY26Budget

approved by the City. Repurchase agreements must be purchased through a
primary government securities dealer, as defined by the Federal Reserve, or a
financial institution doing business in Texas. A Repurchase Agreement must be
signed by the counter-party prior to investment in a repurchase agreement. All
repurchase agreement transactions must have a market value of purchased
securities greater than or equal to 102 percent of the total balance of the
agreement.

g. Money Market Mutual funds that: (1) are registered and regulated by the
Securities and Exchange Commission, (2) seek to maintain a net asset value of
$1.0000 per share, and (3) are rated AAA by at least one nationally recognized
rating service.

h. Local government investment pools, which (1) meet the requirements of the
PFIA, (2) are rated no lower than AAA or an equivalent rating by at least one
nationally recognized rating service, and (3) are authorized by resolution or
ordinance by the City Council.

All prudent measures will be taken to liquidate an investment that is downgraded to less
than the required minimum rating. (PFIA 2256.021)

II. Not Authorized

 Collateralized mortgage obligations
 Commercial paper
 Banker's acceptances
 Reverse repurchase agreements
 No-load mutual funds other than no-load money market mutual funds
 Guaranteed investment contracts not structured as flexible repurchase agreements
 Securities lending programs

VII. INVESTMENT PARAMETERS

Maximum Maturities and Investment Strategies

The City may utilize fund-type investment groups. These groups will reflect similar needs as
to maturity limits, diversity, and liquidity.

City funds shall seek to achieve a competitive yield appropriate for each strategy. A
comparably structured U.S. Treasury security portfolio shall represent the minimum yield
objective. Weighted average yield to maturity shall be the portfolio’s performance
measurement standard. Yield objectives shall at all times be subordinate to the objectives of
safety and liquidity. Tax-exempt debt proceeds shall be invested to optimize the interest
earnings retained by the City, while at the same time fully complying with all applicable State
laws and federal regulations, including the arbitrage rebate regulations.

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