1998-036-RES WHEREAS, CHAPTER 2256 OF TEXAS GOVERNMENT CODE

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2.1.13 1. A. Love Trust Fund 2.1.14 1. P. Poteet Trust Fund 2.1.15 Wilbor.Deshong Trust Fund 2.1.16 Economic Development Fund 2.1.17 Community Development Grant Fund 2.1.18 Revenue Bonds Sinking Fun~ 2.1.19 CO 1993 1 & S Fund 2.1.20 Contractual Obligation I & S Fund 2.1.21 All Other Funds 3.PRUDENCE Investments shall be made "~th judgement and care..under circumstances then prevailing..which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 3.1 The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance mth written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4.0 OBJECTNE The primary objectives, in priority order, of the City's investment activities shall be: 4.1 SAFEIT': Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 LIQUIDIIT': The City's investment portfolio mll remain sufficiently liquid to enable the City of meet all operating requirements which might be reasonably anticipated. 4.3 RE1lJRN ON INVESTMENTS: The City's investment portfolio mll be designed mth the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio. 5.0 DELEGATION OF AUTHORITY AND T'R.AINrnG Authority to manage the City's investment program is derived from the City's charter and reconfirmed by adoption of this policy by the City Council. Management responsibility for the investment program is hereby delegated to the Director of Finance who shall be responsible for all transactions undertaken. The Finance Director may utilize appropriate staff personnel to assist in this area when necessary. Procedures and I controls to regulate the details of the investment program may be developed by the Finance Director as needed. The investment officer shall attend at least one training session relating to the officer's responsibility under the Act within 12 months of assuming duties and complete at least 10 hours of training every two years thereafter. Such training shall be provided by any independent source outside the City such -~..- .. "