ORD 2000-05 - Amend Investment Policy 02-08-2000ORDINANCE NO. 2000 -05
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, AMENDING ITS POLICIES FOR INVESTMENTS,
SECTION XIX. REPORTING; AND MAKING OTHER PROVISIONS
RELATED THERETO.
WHEREAS the Public Funds Investment Act, now Texas Government Code chapter 2256,
requires the City to adopt written investment policies addressing liquidity,
diversification, safety of principal, yield, maturity, and quality and capability of
investment management, with primary emphasis on safety and liquidity; and
WHEREAS the Public Funds Collateral Act, now Texas Government Code chapter 2257,
requires the City to adopt written policies addressing investment securities eligible
to secure deposits of public funds;
WHEREAS Texas Local Government Code Chapter 105 generally authorizes depositories for
municipal funds; and
WHEREAS City Council desires to amend the investment policies it adopted on March 6,
1990, and last amended by City Council on February 10, 1998.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, that:
SECTION 1: The attached City of Huntsville Investment Policy shall be adopted as the policy
of the City regarding investments, investment securities, and depositories.
SECTION 2: This ordinance shall take effect February 8, 2000.
PASSED AND APPROVED on the 8th day of February, 2000.
TH CITY OF HUNTS LE
William B. Green, Mayor
ATL�l
Dann elter City Secretary
APPROVED AS TO FORM:
Paul C. Isham, City Attorney
E. "Yield" shall be calculated in accordance with regulations governing the registration
of open -end management investment companies under the Investment Company Act
of 1940, as promulgated from time to time by the Federal Securities and Exchange
Commission.
XIX. REPORTING
Not less than quarterly, the Finance Director shall prepare and submit to the City Council
a written report of investment transactions for the preceding reporting period. The report
shall describe in detail the investment position of the City on the date of the report, and
state compliance of the investment portfolio, as it relates to the investment strategy and
investment policies. The report shall contain a summary statement prepared in compliance
with generally accepted accounting principles of each pools fund group that states the
beginning market value for the reporting period, additions and changes to the market value
during the period, the ending market value for the period, a comparison to the benchmark
bond equivalent yield or United States Treasury obligation of comparable maturity and
fully accrued interest for the reporting period. The report shall state the book value, market
value, and maturity date of each separately invested asset as of the beginning and end of the
reporting period by the type of security and fund type invested. The fund for which each
individual investment was acquired shall be reported. The report shall be presented to the
Council and shall be jointly signed by the Finance Director and City Manager within 21
days after the end of the period. On a monthly basis, the Finance Director shall provide to
the City Council, in summary form, a report showing by fund, total cash, monies in
investment pools and securities by type and maturity date, and a summary of interest
earnings.
XX. POLICY ADOPTION
The City of Huntsville investment policy shall be adopted by ordinance of the City Council.
The policy shall be reviewed annually by the Finance Committee, and any modifications
made thereto must be approved by the City Council. Annually, City Council shall adopt
a resolution stating that it has reviewed the investment policy and investment strategies.
The resolution shall record any changes made to the investment policy or investment
strategies.
PART II - BANKING SERVICES
The City Council shall approve a financial institution/institutions to act as a depository bank for a
two year period.
I. ESTABLISHMENT OF BANKING DEPOSITORY
A. The City Council shall select a bank, credit union or savings association as its
primary depository for normal banking transactions. In addition, the City may
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