M&C Review


COUNCIL ACTION:  Approved on 9/11/2018 

DATE: 9/11/2018 REFERENCE NO.: **G-19361 LOG NAME: 13GENERAL PORTFOLIO INVESTMENT POLICY AND STRATEGY 2018
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt a Revised Investment Policy and Strategy for the City's General Portfolio (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council adopt the attached amended and revised City of Fort Worth, Texas Investment Policy and Strategy for the City's General Portfolio.

 
DISCUSSION:

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 (PFIA), Texas Local Government Code 2256.  The PFIA requires that the Investment Policy and Strategy document be reviewed at least annually.  The IPS was last approved on September 26, 2017.

Staff and the Investment Committee have reviewed the IPS and are recommending revisions to have the language of the IPS more closely reflect the language used in the PFIA.  Other changes include correcting grammatical errors and typographical errors.

Recommended changes include:

Section VII, Subsection B, Ethics and Disclosures, paragraph 3

From:   In addition, all Investment Officer(s) shall file disclosure statements in accordance with the requirements of the Act.

To:        In addition, all Investment Officer(s) shall file disclosure statements with the Texas Ethics Commission and the City Council if:
                a.  the officer has a personal business relationship with a business organization offering to engage in an investment transaction with the City (as defined in Section 2256.005 (i)(1-3)); or
                b.  the 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.

Section VII, Subsection B, Training, paragraph 1

From:            In accordance with the Act, all Investment Officer(s) shall attend at least one training session within twelve (12) months after assuming investment duties and shall attend eight hours of training every two years thereafter, with the first such two-year period beginning on the first day of the City's fiscal year after the year in which the Investment Officer takes the initial training.  Training shall be provided by professional organizations authorized in accordance with state law and designated by the Investment Committee.

To:                In accordance with the Act, all Investment Officer(s) shall attend ten hours of training within twelve (12) months after assuming investment duties and shall attend eight hours of training every two years thereafter, with the first such two-year period beginning on the first day of the City's fiscal year after the year in which the Investment Officer takes the initial training.  Training shall be provided by professional organizations authorized in accordance with state law and designated by the Investment Committee.

Add a new Section IX, Existing Investments to mirror state law standard.

Former Section IX, Authorized Investments renumbered as Section X, Authorized Investments and revised.  (Note all sections after this section have been renumbered due to the addition of the " Existing Investments" section)

Section X. Authorized Investment, item 13.

From:          Investment Pools as allowed by law which must also be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one (1) nationally recognized rating service and whose intent is to maintain a net asset value of one dollar.

To:                Investment Pools as allowed by law which must also be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one (1) nationally recognized rating service.  A public funds investment pool that uses amortized cost or fair value accounting must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize at $1.00 net asset value, when rounded and expressed to two decimal places.

A redline of the original policy has been attached to show all of the changes that were made.  The amended General Portfolio Investment Policy and Strategy incorporating the changes identified above was 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 the Investment Policy and Strategy provides the foundation for sound investment management.  The policy provides guidance on appropriate investment practices ensuring both short-term and long-term financial success for the City of Fort Worth.

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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
  GENERAL PORTFOLIO IPS 2018 Final.pdf
  GENERAL PORTFOLIO IPS ADOPTED Redline.pdf