TITLE
Consider a memorandum/resolution to approve the City of Killeen’s Investment Policy that is incorporated within the City of Killeen’s Financial Governance Policies.
SUMMARY
DATE: August 21, 2017
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: City of Killeen Investment Policy
BACKGROUND AND FINDINGS:
The investment policy applies to the investment activities of the City of Killeen which is required to be reviewed and approved by the City Council annually.
On August 21, 2018, the Investment Committee met and reviewed investment policy changes recommended by the City's Investment Advisor, Valley View Consulting. The revisions primarily align the City's Investment Policy with statutory requirements.
Section XXII(I)1 Insurance or Collateral (page 86) was amended:
1. To cite the Public Funds Collateral Act (Chapter 2257 of the Texas Government code) for collateral guidelines.
2. To differentiate the amount of collateral required depending upon the instrument pledged (102% of principal and accrued interest for securities and 100% of principal and interest for Federal Home Loan Bank [FHLB] letters of credit).
3. To require that a letter of credit expire at least two business days beyond the maturity date of the CD.
THE ALTERNATIVES CONSIDERED:
1. Accept revisions to the City of Killeen Investment Policy
2. Reject revisions to the City of Killeen Investment Policy
Which alternative is recommended? Why?
Option number 1 to accept the revisions to the City of Killeen Investment Policy as recommended by the City’s Investment Advisor, Valley View Consulting, is the recommended alternative. As part of their contracted service, Valley View Consulting reviews and recommends revisions to the Investment Policy each year to ensure compliance with the Public Funds Investment Act and the Public Funds Collateral Act.
CONFORMITY TO CITY POLICY:
Texas Government Code sec. 2256.005(e) states that the governing body...
Click here for full text