08 - City Investment Policy - Laserfiche WebLink

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INVESTMENT POLICY January 2019 1.0 POLICY AND INVESTMENT STRATEGY It is the policy of the City of Paris to invest public funds in a manner which will provide first: safety of principal, second: liquidity, and third: return on investment consistent with the need for safety and liquidity, fourth: meet the daily cash flow demands of the entity, and fifth: conform to all state and local statues governing the investment of public funds, including but not limited to, the Public Funds Investment Act, Chapter 2256, Local Government Code. Investment strategies for operating funds have as their primary objective to assure that anticipated flows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure which will experience minimal volatility during economic cycles. This may be accomplished by purchasing high quality, short to medium securities which will complement each other in a laddered maturity structure. The dollar weighted average maturity target will be two years or less. Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity which exceeds the debt service payment date. Investment strategies for debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund from securities with a low degree of volatility. Securities should be of high quality and consistent with bond ordinance requirements. Short to medium maturities generally meet these requirements. Investment strategies for special projects or special purpose funds will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The stated final maturity dates of securities held should not exceed the estimated project or purpose completion date. 2.0 SCOPE This investment policy applies to the funds listed below. These funds are accounted for in the City's Comprehensive Annual Financial Report. 2.1 Consolidated Cash Funds 2.1.01 General Fund 2.1.10 Water and Sewer Fund 2.1.11 Capital Projects Fund 2.1.13 Equipment Replacement Fund 2.1.14 CO 2010 Construction Fund 2.1.16 TWDB Loan Fund 2.1.21 Child Safety Fund 2.1.23 PEG Channel Fund 2.1.24 Lake Crook Park Restoration Fund 2.1.25 Grant Fund 2.1.27 Water Contract Fund 2.1.28 Parks Donations 2.1.30 Community Development Fund 2.1.33 Municipal Court Technology Fund 2.1.34 Municipal Court Security Fund 2.1.35 Municipal Court Child Safety Fund 2.1.36 Municipal Court Time Payment Fund 2.1.37 Police Confiscated Funds -Gambling 2.1.38 Police Judicial Forfeitures Fund