The purpose of this Mayor and Council Communication is to adopt an amended and revised investment policy and strategy (IPS) for the City's General Portfolio in accordance with the requirements of the Public Funds Investment Act, Texas Government Code 2256 (PFIA). The PFIA requires that the Investment Policy and Strategy document be reviewed at least annually. The IPS was last approved on January 26, 2017. Staff reviewed the IPS and is recommending one minor revision to reflect a change in state law from the recent legislative session, which saw a total of five bills being passed and signed into law amending the PFIA. Two of the bills did not pertain to municipalities, and the other three were generally clarifications of existing law. The City's policy only needs to be updated due to a change in HB 1701, which clarifies the requirements for documentation for broker/dealers. Specifically, Section VIII. Authorized Financial Institutions, Depositories, and Broker/Dealers sub section Security Broker/Dealers has been updated. Language has been added which requires the City's investment advisory firm ensure that the broker/dealers comply with the provisions of this policy. The first paragraph of this section was changed from: Security Broker/Dealers
In accordance with the authority delegated by the City Council, the Investment Committee will annually review and adopt a list of broker/ dealers who are authorized to engage in investment transactions with the City. to: Security Broker/Dealers
In accordance with the authority delegated by the City Council, the Investment Committee will annually review and adopt a list of broker/ dealers who are authorized to engage in investment transactions with the City. If the City engages a firm to act as an investment advisor or as an investment manager, the firm will have the responsibility to ensure all broker/dealers comply with the provisions of this policy. The IPS and proposed change were reviewed by the Investment Committee, which recommends adoption of the IPS as revised. This M&C does not request approval of a contract with a business entity. |
