Page 133 - CityofBurlesonFY26Budget

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

 Limiting investments to avoid overconcentration in investments from a specific
issuer or business sector, when appropriate,
 Limiting investment in higher credit risk issuers,
 Investing in investments with varying maturities, and
 Continuously investing a portion of the portfolio in readily available funds such as
financial institution deposits, local government investment pools, money market
funds, or overnight repurchase agreements to ensure that appropriate liquidity is
maintained in order to meet ongoing obligations.

Competitive Environment

The City requires a competitive environment for all individual security purchases and sales,
financial institution time deposit and transaction accounts, and money market mutual fund
and local government investment pool selections. The Finance Director shall develop and
maintain procedures for ensuring a competitive environment in the investment of the City’s
funds.

Delivery versus Payment

All security transactions shall be settled on a delivery versus payment basis.

VIII. PRIMARY DEPOSITORY AND BROKER/DEALERS

Primary Depository

At least every five years a Primary Depository shall be selected through the City’s banking
services procurement process, which shall include a formal request for application (RFA). The
selection of a primary depository will be determined by evaluation of the “most advantageous”
criteria during the RFA process, and may include the following selection criteria:

 The ability to qualify as a depository for public funds in accordance with state law,
 The ability to provide requested information or financial statements for the

periods specified,
 The ability to meet the minimum required items in the banking RFA,
 Complete response to all required items on the RFA form, and
 Competitive net banking service cost, consistent with the ability to provide an
appropriate level of service.

Authorized Broker/Dealers

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