Page 424 - FY 2026-2027 Adopted Budget Book

VII. Reporting.

1. Methods. The Director of Finance shall prepare an investment report, at least quarterly,
including a management summary that provides an analysis of the status of the current
investment portfolio and transactions made over the last quarter. This management
summary will be prepared in a manner, which will allow Bedford to ascertain whether
investment activities during the reporting period have conformed to the Investment
Policy. The report shall be provided to the City Council. The report will comply with the
requirements of the PFIA.

In conjunction with the annual audit, the quarterly reports shall be formally reviewed by
an independent auditor, and the result of the review shall be reported to the City Council
by that auditor.

2. Performance Standards . The investment portfolio will be managed in accordance with
the parameters specified within this Policy. The portfolio should obtain a market average
rate of return during a market/economic environment of stable interest rates. A series of
appropriate benchmarks shall be established against which portfolio performance shall be
compared on a regular basis. “Weighted average yield to maturity” shall be the portfolio
performance measurement standard.

3. Market Valuation . The market value of the portfolio shall be calculated at least
quarterly and a statement of the market value of the portfolio shall be issued at least
quarterly. The source of pricing used to calculate market value will be sources
independent from the transaction.

4. Credit Rating. Not less than quarterly, the Investment Officers will monitor the credit
rating for each held investment that has a PFIA required minimum rating. Any Authorized
Investment that requires a minimum rating does not qualify during the period the
investment does not have the minimum rating. Prudent measures will be taken to liquidate
an investment that is downgraded to less than the required minimum rating.

VIII. Policy Considerations.

1. Exemption. Any investment currently held that does not meet the guidelines of this
Policy shall be exempted from the requirements of this Policy. At maturity or liquidation,
such monies shall be reinvested only as provided by this Policy.

2. Annual Review and Amendments. The City Council shall annually review this Policy
and shall adopt a written instrument stating its review and recording any changes. Any
changes must be approved by the Investment Committee prior to consideration by the
City Council.

IX. Selection of Primary Depositories - Request for Application Process.

Primary Depositories shall be selected through Bedford’s banking services procurement
process, which shall include a formal Request for Application (RFA) issued in compliance
with applicable State law (Chapter 105, State of Texas Local Government Code). This
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