RES 1292 09/28/2004 RESOLUTION is U
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CIBOLO OUTLINING ITS POLICY
FOR THE INVESTMETN OF PUBLIC FUNDS,AND REVOKING ALL PRIOR AND CONFLICTING
RESOLUTIONS AND/OR POLICIES.
WHEREAS,a municipal governing body must adopt a written policy for the investment of public funds in
accordance with Chapter 2256 of the Texas Government Code,as amended,and
WHEREAS,the policy for public funds investment must include a written investment strategy.
THEN BE IT RESOLVED BY THE CITY COUNCIL OF CIBOLO TEXAS:
1. It is the policy of the City of Cibolo,Texas,to maintain a fund balance equal to six months expenditures
in the General Fund. All available public funds shall be invested in securities that provide for the
protection of the principal,provide liquidity as needed,and provide reasonable yield to the City.
2. All investments will be in compliance with applicable State and Federal law. Investment funds in
excess of Federal Deposit Insurance Corporation coverage and/or invested in other than Certificates of
Indebtedness of the federal government will be protected by bonding and/or pledged securities in
accordance with applicable State statues.
3. The City Manager and City Treasurer are designated as the officers responsible for the investments of
the City funds(Investments Officers),and are authorized to give written and oral instructions to the
depository bank and to place orders for the purchase of securities. No other person may deposit,withdraw,
invest,transfer,or otherwise manage City funds eligible for investment without the express written
authority of the Mayor or the City Manager.
4. Investments should be made with judgement and care,under the prevailing circumstances,which
persons of prudence,discretion,and intelligence exercise in the management of their own affairs,not for
speculation,but for investment,considering the probable safety of their capital as well as the probable
interest to be derived. The standard of prudence to be used by Investment Officers shall be the"prudent
person"standard and shall be applied in the context of managing an overall portfolio. Investment Officers
acting in accordance with written procedures of the investment policy and exercising due diligence shall be
relieved of personal responsibility for an individual security's credit risk or market price changes,provided
deviations from expectations are reported in a timely fashion and appropriate action is taken to control
adverse developments.
5. The Investment Officer is authorized to invest eligible funds in Certificates of Deposit of federally
insured agencies,certificates and strips from the Federal Reserve,United States Treasury Bonds,Notes,
and bills,and in authorized Investment Pools(as defined in section 2256.016 and 2256.019,Texas
Government Code)as long as funds may be withdrawn within 72 hours without penalty. No more than
ninety percent(90%)of invested funds shall be in pool investments. At least five percent(5%)of the Total
General Fund expenditures in the adopted annual budget shall be kept on deposit in a financial institution in
a ready asset(checking,saving,other demand deposit)account at all times to prevent cash shortages.
6. The investment strategy for City operating funds is to invest in a manner which will first emphasize
preservation of principal and liquidity,then diversification,and finally generation of income,and assure
that investment maturities match anticipated cash flows. Investments with operating funds shall have
maturities that do not exceed two year.
7. The investment strategy for city debt service reserve funds is to invest in a manner in compliance with
bond orders which will generate revenue income for the debt service fund. Investments with debt service
reserve funds will not have a maturity date that exceeds five years and will not exceed the final debt service
payment date.
8. The City shall retain and consult with a bond advisor before taking any action that could
to issue debt. require the City
9. The City may not set a property tax rate for debt service above$1.50 per$100 valuation. The City shall
not set the debt service portion of the property tax at a rate higher than required for debt service.
10. When the current return rate on secured investments is less than the rate being paid as an interest
expense item for debt service,the City Manager shall determine if the debt is callable,and instruct the call
of the bonds if sufficient funds are available to repay the debt.
11. The City Treasurer will prepare and submit to the City Council quarterly report on the investments of
City funds.
The Investment Officers shall receive formal fin
Government Code. investment training as deed in Section 2256.008 Texas
13. A report of all city investments will be included in the annual financial report/audit prepared by the
auditor as of 30 September of each year.
Passed and adopted this the 28TH day of September 2004.
YWY4/r
Charles Ruppert
Mayor
ATTEST:
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