M&C Review


COUNCIL ACTION:  Approved on 9/11/2018 

DATE: 9/11/2018 REFERENCE NO.: **G-19362 LOG NAME: 13OPEB TRUST INVESTMENT POLICY & STRATEGY 2018
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt Investment Policy and Strategy for the Other Post-Employment Benefit Trust (ALL COUNCIL DISTRICTS)        

RECOMMENDATION:

It is recommended that the City Council adopt the Investment Policy and Strategy for the City's Other Post-Employment Benefit (OPEB) Trust for funding of eligible retiree healthcare benefits.

 
DISCUSSION:

The purpose of this Mayor and Council Communication (M&C) is to adopt an Investment Policy and Strategy for the OPEB Trust in accordance with the requirements of the Public Funds Investment Act (PFIA), Local Government Code Section 2256.  Pursuant to the State of Texas PFIA, the City Council is required to take formal action annually stating that the City's investment policy and investment strategy have been reviewed and approved and that any changes to those documents have been recorded.

The OPEB Trust consists of money that the City Council has set aside to be used for future retirement health care costs.  The OPEB Trust was established in 2009 through City Council Resolution No. 3779-08-2009.  For many years the Trust had been managed by an Investment Guideline signed by the City and the Trustee at the time of creation.  On October 10, 2017 the City Council adopted a formal OPEB Trust Investment Policy and Strategy Statement through approval of M&C G-19127.

The policy and strategy have been reviewed by the Investment Committee, and there are no proposed changes to the previously adopted document.  Further, policy and strategy was reviewed and recommended for approval by the Audit Committee on June 12, 2018.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that that the OPEB Trust Investment Policy and Strategy provides the foundation for solid fiscal management of the Trust portfolio.  The policy provides guidance on appropriate investment practices ensuring long-term financial success for the OPEB Trust.

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FROM
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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:
John Samford (2318)

 
 
ATTACHMENTS
  OPEB INVESTMENT POLICY AND STRATEGY 2018.pdf