From
Tannie Camarata
Title
Resolution approving the City of Grand Prairie Investment Policy with proposed revisions to become effective upon passage and approval
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
The City's Investment Policy is reviewed each year for necessary revisions for operational procedures, staffing changes and/or new state/federal regulations. In addition, the Government Treasurers' Organization of Texas (GTOT) reviewed this policy and has awarded the Certificate of Distinction to the City for maintaining a comprehensive, written investment policy.
In addition, GTOT recommended some changes to the Investment Policy for additional clarification as detailed by Public Funds Investment Act. They all pertain to the safekeeping and collateralization requirements for our purchased and/or pledged securities.
1. Section VIII. Safekeeping, page 5, paragraph one that adds securities and collateral will be held "...in the City's name."
2. Section IX. Collateral Securities for Certificates of Deposit and Demand Accounts, page 5, first sentence added to state "Collateralization is required for all uninsured collected balances, plus accrued interest if any."; and,
3. Section IX., page 6, paragraph 3: add* to the sentence "The collateral securities must be held in safekeeping *by a third-party custodian designated by the entity and in the City's name..." ; and, delete ..."the Federal reserve Bank or the Federal Home Loan Bank of Dallas..".
The Finance and Government Committee reviewed the policy at the October 14, 2014 meeting and recommends adoption of the policy with revisions.
Financial Consideration
There is no financial impact resulting from this action.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, APPROVING THE CITY OF GRAND PRAIRIE'S INVESTMENT POLICY WITH CHANGES TO BECOME EFFECTIVE UPON PASSAGE AND APPROVAL
WHEREAS, it is the goal of the City to maintain a long-term, stable and positive financial condition; and
WHEREAS, well planned and prudent public funds investment management is essential to the achievement of the City's goal;
WHEREAS, the City is required to review, revise if necessary and adopt the City's Investment Policy on an annual basis; and,
WHEREAS, the Finance and Government Committee reviewed and supported the revisions to the Financial Management Policy.
NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS THAT:
SECTION 1. That the City Council hereby adopts the City's Investment Policy with changes to sections VIII. Safekeeping, page 5 and IX. Collateral Securities for Certificates of Deposit and Demand Accounts
pages 5 and 6 as shown below:
VIII. Safekeeping, page 5, paragraph one that adds securities and collateral will be held "...in the City's name."
IX. Collateral Securities for Certificates of Deposit and Demand Accounts, page 5, first sentence added to state "Collateralization is required for all uninsured collected balances, plus accrued interest if any."; and,
IX. page 6, paragraph 3: add* to the sentence "The collateral securities must be held in safekeeping *by a third-party custodian designated by the entity and in the City's name..." ; and, delete ..."the Federal reserve Bank or the Federal Home Loan Bank of Dallas..".
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 14TH DAY OF OCTOBER, 2014.