Loading...
2004-001-RES AFFIRMING COMPLIANCE WITH REQUIREMENTS OF THE PUBLIC FUNDS INVESTMENT ACT RESOLUTION NO. 2004-001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AFFIRMING THAT THE CITY OF PARIS HAS COMPLIED WITH THE REQillREMENTS OF THE PUBLIC FUNDS INVESTMENT ACT; AMENDING THE CITY'S INVESTMENT POLICY; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 2256 of the Texas Government Code, commonly known as the "Public Funds Investment Act," requires the chief financial offer of the City to attend investment training; and, WHEREAS, the City of Paris approves of the investment training course sponsored by the Texas Municipal League or an) other independent source; and, WHEREAS, the chief financial, officer of the City of Paris has attended an investment training course sponsored by the Texas Municipal League or other independent source, as required by the Public Funds Investment Act; and, WHEREAS, the Public Funds Investment Act requires the City to adopt an investment policy by rule, order, ordinance, or resolution; and, WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of February, 1990, in Resolution No. 90-009, adopt an investment policy, which was amended on the 13th day of November, 1995, by Resolution No. 95-122; the 9th day of March, 1998, by Resolution No. 98-036; the 11th day of January, 1999, by Resolution No. 99-003; the 12th day of February 2001, by Resolution No. 2001-010; the 14th day of January, 2002, by Resolution No. 2002-021, and the 13th day of January, 2003, by Resolution No. 2003-005; and it is deemed appropriate that such policy be further amended; and, WHEREAS, the investment policy and incorporated revisions comply with the Public Funds Investment Act and authorize the investment of City funds in safe and prudent investments; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City of Paris has complied with the requirements of the Public Funds Investment Act. Section 3. That the Investment Policy be, and the same is hereby, amended to the form shown in Exhibit A, attached hereto. Section 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 12th day of January, 2004. ATTEST: APPROVED AS TO FORM: INVESTMENT POLICY Revised January 2004 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 a resonable investment return with the maximum security while meeting the daily cash flow demands ofthe entity and conforming to all state and local statutes governing the investment of public funds. 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 365 days 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 2.1.12 WW/SS Revenue Bond 2000 Construction Fund 2.1.20 Special Revenue 2.1.21 Child Safety Fund 2.1.22 Health Department 2.1.26 CJD Grant Fund 2.1.40 CO 1993 Construction Fund 2.1.41 Tax & Revenue CO 2000 Construction 2.1.42 CO Series 2002 Construction Fund 2.1.50 Consolidated Payroll EX.KI8/f 'IT- 2.1.58 2003 GO Refunding Bonds 1& S 2.1.72 Library Memorial Fund 2.1.73 J. A. Love Trust Fund 2.1.74 J. P. Poteet Trust Fund 2.1.75 Wilbor-Deshong Trust Fund 2.1.76 Gibbs Memorial 2.1.77 Vaughan Memorial 2.1.78 Malone Love Memorial 2.2 Non-Consolidated Cash Funds 2.1.02 Economic Development Fund 2.1.30 Community Development Grant Fund 2.1.50 Revenue Bonds Sinking Fund 2.1.54 CO 1993 1 & S Fund 2.1.55 Tax & Revenue CO 2000 I & S Fund 2.1.56 Tax & Revenue CO 2002 1& S Fund 2.1.00 All Other Funds 3.PRUDENCE Investments shall be made with judgement and care--under circumstances then prevailing--which persons of prudence, discretion and intelligence exercise in the management oftheir 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 with 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 OBJECTIVE The primary objectives, in priority order, ofthe City's investment activities shall be: 4.1 SAFETY: 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 LIQUIDITY: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 4.3 RETURN ON INVESTMENTS: The City's investment portfolio will be designed with 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. Wall Street Journal and/or through Bloomberg Information Services, and/or through a securities dealer's trading desk. 17.0 INVESTMENT POLICY ADOPTION The City of Paris investment policy shall be adopted by resolution ofthe City Council. The policy shall be reviewed and re-adopted annually by the City Council and any modifications made thereto must be approved by the City Council.