Page 40 - CityofGrapevineFY26AdoptedBudget

designed and managed in a manner responsive to the public trust and consistent with this Policy.

Investments shall be made with the primary objectives of:

1. Preservation and safety of capital
2. Maintenance of sufficient liquidity
3. Preservation of public trust through prudent investment activities
4. Maximization of return within acceptable risk constraints, and
5. Diversification of investments

In accordance with the Public Funds Investment Act, the City of Grapevine’s investment strategies shall address the following priorities (in order of
importance):

1. Understanding the suitability of the investment to the financial requirements of the City
2. Preservation of safety and principal
3. Liquidity
4. Marketability of the investment prior to maturity
5. Diversification of the investment portfolio, and
6. Yield

Each major fund type has varying cash flow requirements and liquidity needs. Therefore, specific strategies shall be implemented considering the fund’s
unique requirements. The City’s funds shall be analyzed and invested according to the following major fund types:

Operating Funds
Construction and Capital Improvement Funds
Debt Service Funds

BUDGET CONTINGENCY PLAN
In 2007 the city developed a Budget Contingency Plan to serve a two-fold purpose of:
(1) Enacting structural changes that affect the short-term financial outlook;
(2) Remain in place to monitor financial conditions and serve as an “early warning” mechanism.

The Budget Contingency Plan addresses the following operational areas:

Service Provision / Efficiency
Personnel
Equipment Replacement
Revenue Enhancement
Administrative / Operational Policies
Debt Management
Fiscal Planning

35