TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, consider and act regarding Resolution 25-07 approving the Investment Policy (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The Town Council is required to review and approve a written investment policy, not less than once a year, according to the Public Funds Investment Act (PFIA) ?2256 of the Texas Government Code. The Investment Policy is a written compilation of the Town's investment policies, procedures, and strategies. It is a comprehensive document which must be updated periodically in response to changing laws, as well as internal changes to policies and procedures.
The Town of Westlake, as a fiduciary of public funds, has determined that investing funds is in the best interest of the citizenry in order to minimize risk to principal, ensure liquidity of funds, and obtain a reasonable return. As a municipality, the Town is restricted to specific investment activities by the PFIA. Additionally, the PFIA provides guidance on the administration, including policies, reporting, and training.
DISCUSSION:
The only update to the Policy at this time is the addition of a list of approved broker/dealers (exhibit A). Broker/dealers are an important part of the Town's investment strategy. They allow for the direct purchase of PFIA-compliant instruments and support portfolio diversification, safety of principal, and reasonable yield. The list of approved broker/dealers will be given the occasional opportunity to bid for direct placement investments. Investments will be chosen based on yield, type of instrument, and maturation for cash flow purposes. These activities will be reported as part of the required quarterly investment report and the approved broker/dealers will be evaluated on an annual basis.
FISCAL IMPACT:
There is no cost to the Town or Academy. Approval of the policy allows for continued investment activities to generate interest revenue.
STAFF RECOMMENDATI...
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