CC MEETING: November 19, 2024
DATE: November 12, 2024
TO: Erin Rinehart, City Manager
FROM: Diana K. Vaughn, Chief Financial Officer
Chrystal K. Davis, Assistant City Manager
Title
Consider A Resolution Adopting The Investment Policy As A Fulfillment Of The Public Funds Investment Act Chapters 2256.005 and 2256.025.
Body
BACKGROUND:
The City’s investment policy was last amended by Resolution on November 7, 2023. According to Texas Government Code, Chapter No. 2256 Public Funds Investment Act (PFIA), the governing body of an investing entity subject to this chapter or the designated investment committee of the entity shall review its investment policy and investment strategies, and its list of qualified brokers authorized to engage in investment transactions with the entity at least annually. All changes were discussed with and approved by the City Council Audit, Finance Governance Committee on November 12, 2024, and are as follows:
• Update from Financial Specialist- Treasury to Treasury Analyst to reflect updated position title.
• Updated Appendix A-Broker/Dealers and Financial Institutions Authorized To Do Business with City of Carrollton
o Added FHN Financial Capital Markets. This broker submitted the required documentation to the City in accordance with PFIA and the City of Carrollton Investment Policy.
o Deleted Oppenheimer & Co. Inc. This dealer was not competitive during 2024.
FINANCIAL IMPLICATIONS:
Investment income is part of the city’s revenue budget and is directly impacted by financial market changes and investment strategies included in the investment policy. The primary objective of this policy is the preservation and safety of the overall portfolio’s principal.
IMPACT ON COMMUNITY SUSTAINABILITY:
The Investment Policy helps support the City’s financial position and sustainability.
STAFF RECOMMENDATION/ACTION DESIRED:
Consider a resolution adopting the Investment Policy as fulfillment of the Public Investment Act Chapters 2256.005 and 2256.02.