2014-003 - Affirming the City of Paris has complied with requirements of the Public Funds Investment Act and amending the City’s Investment Policy

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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 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 as the Texas Municipal League or the Government Finance Officers Association. 6.0 CONFLICTS Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within this Jurisdiction, and they shall further disclose any large personal fmancial/investment positions that could be related to the performance of the City, particularly with regard to the time of purchases and sales. The investment officer must file a disclosure statement with the Texas Ethics Commission and the governing body if the officer has a personal business relationship (as defined in 2256.005 (i) (1 -3) with a business organization offering to engage in an investment transaction with the City. A disclosure statement must also be filed by the investment officer if the investment officer is related within the second degree by affinity or consanguinity as determined under Chapter 573 of the Texas Government Code, to an individual seeking to transact investment business with the entity. 7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Finance Director will maintain a list of financial institutions authorized to provide investment services. No public deposit shall be made except in a qualified public depository as established by state law. All financial institutions and broker /dealers who desire to become qualified bidders for investment transactions must supply the Finance Director with the following: audited financial statement, proof of National Association of Security Dealers certification, trading resolution, proof of state registration, completed broker /dealer questionnaire if requested, and certification of having read entity's investment policy. An annual review of the financial condition and registrations of qualified bidders will be conducted by the Finance Director. A current audited financial statement is required to be on file for each financial institution and broker /dealer in which the City of Paris invests. 8.0 AUTHORIZED /SUITABLE INVESTMENTS The City of Paris is empowered by statue to invest in the Types of securities authorized by Chapter 2256 of the Government Code. Even if allowed by the Public Funds Investment Act, the City of Paris will not invest in securities known as "collateralized debt obligations" which are pools of debt that include sub - prime mortgages. 9.0 COLLATERALIZATION Collateralization will be required on two types of investments: certificates of deposit and repurchase