From
Diana G. Ortiz
Title
Resolution approving the revised City of Grand Prairie Investment Policy 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 to operational procedures, staffing changes and/or new state/federal regulations. Government Treasurers' Organization of Texas (GTOT) also reviews investment policies and has awarded the Certificate of Distinction to the City for maintaining a comprehensive, written investment policy that adheres to State Law.
Staff recommends the following changes to the policy:
1. Update job titles from Cash and Debt Manager to Treasurer and Cash and Debt Analyst to Treasury Analyst throughout the policy. The revised titles are consistent with the City's payplans and job descriptions;
2. Section IV. Authorized Investments, 2.; specifically, Repurchase agreements*. Delete "...with remaining maturity of three years or less." This is redundant language and not required by State Law; and,
*Repurchase agreements are authorized investment vehicles and based on the underlying collateral consists of obligations of the United States or its agencies and instrumentalities. Thus, the City's portfolio retains safety, marketability, liquidity and yield. The primary difference with this security type is that we dictate the term of its ownership and at the end of its term/maturity, the counterparty repurchases it. These arrangements carry a higher yield than the overnight investment pools and money markets funds. In addition, management capitalizes on higher yields by identifying an appropriate repurchase agreement program with defined parameters allowed for this City.
The Finance and Government Committee reviewed the proposed revisions at the December 13 meeting and supports its approval.
Financial Consideration
There is no financial impact resulting from this a...
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