Page 130 - CityofBurlesonFY26Budget

All investment-specific restrictions shall be measured at the time of purchase and based on
portfolio book value.

The City maintains the following fund-type portfolios which will utilize the following specific
investment considerations designed to address the unique characteristics of the pooled fund
groups or separately held investment assets represented in the portfolios:

(1) Operating Funds

This pooled investment group includes the total of cash and investments available for
current operations plus all required operating reserves of the following fund types:
general fund, internal service funds, debt service funds, special revenue funds, and
enterprise funds.

Suitability - Any investment eligible in the Investment Policy is suitable for Operating
Funds.

Safety of Principal - All investments shall be of high quality with no perceived default risk.
Market price fluctuations may occur. However, by managing the weighted average days
to maturity for the Operating Fund’s portfolio to less than 365 days and restricting the
maximum allowable maturity to three years, the price volatility of the overall portfolio
will be minimized.

Liquidity - The Short-term Operating Funds require the greatest short-term liquidity of
any of the Fund types. Cash equivalent investments will provide daily liquidity and may
be utilized as a competitive yield alternative to fixed maturity investments.

Marketability - Securities with active and efficient secondary markets are necessary in
the event of an unanticipated cash flow requirement.

Diversification - Investment maturities should be staggered throughout the budget cycle
to provide cash flow based on the anticipated operating needs of the City. Market cycle
risk will be reduced by diversifying the appropriate maturity structure out through three
years.

Yield - Attaining a competitive market yield for comparable investment-types and
portfolio restrictions is the desired objective. The yield of an equally weighted, rolling
three-month Treasury bill portfolio will be the minimum yield objective.

(2) Bond Proceeds and Capital Improvement Funds

Suitability - Any investment eligible in the Investment Policy is suitable for the Bond
Proceeds and Capital Improvement Funds.

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