Title
Consider a memorandum/resolution approving participation in a Public Funds Investment Pool known as Texas Connect.
Body
DATE: September 17, 2024
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Approval to participate in Texas Connect investment pool
BACKGROUND AND FINDINGS:
Texas Connect is a pooled investment option administered and managed exclusively for Texas government entities. The Trust aims to create one or more investment pools for Participants under Section 2256.016 of the Public Funds Investment Act. This allows Participants to combine their funds or funds under their control with those of other Participants to preserve principal, maintain liquidity, and maximize yield. All activities will be conducted in compliance with the Public Funds Investment Act, the Texas Government Code, and other relevant Texas laws governing the investment of Participants' funds.
The investment objectives of Texas Connect are the following:
* The preservation and safety of invested principal
* Maintenance of suitable liquidity for its participants
* Maximizing provision of current income.
Texas Connect has been reviewed by the staff and has met all required criteria of the City's Investment Policy for approval as an authorized investment. The Texas Connect yield as of August 16, 2024 was 5.42. For comparison purposes, TexStar (our current investment pool) average daily yield on August 16, 2024 was 5.2913. Texas Connect is rated at AAAm by Standard & Poors. The City currently has temporary resources invested in our depository institution, as well as TexStar public funds investment pool. Investing a portion of the City's resources in Texas Connect would benefit the City by providing greater diversification and flexibility while providing a competitive return on the City's assets. Participation in Texas Connect will not undermine the existing depository contract.
THE ALTERNATIVES CONSIDERED:
N/A
Which alterna...
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