R2021-259 2021-11-22 DocuSign Envelope ID'44CA410D-EOBF-41 E9-A41 F-099DA239B46C
RESOLUTION NO. R2021-259
A Resolution of The City Council of the City of Pearland, Texas, adopting an
Amended Investment Policy, Investment Strategy and approved Brokers in
accordance with Chapter 2256 of the Government Code ("Public Funds
Investment Act").
WHEREAS, the Public Funds Investment Act codified in Government Code Chapter 2256
governs local government investment; and
WHEREAS,the Public Fund Investment Act(Section 2256 005a),as amended,requires the
City to adopt an Investment Policy and Investment Strategy by rule, order, ordinance or resolution
governing the investment of funds under its control, and
WHEREAS, the Public Fund Investment Act (Section 2256 005e), requires the governing
body to review and adopt that Investment Policy and Investment Strategy by rule, order, ordinance
or resolution not less than annually, recording any changes made thereto, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS
Section 1 That the City of Pearland has complied with the requirements of the Public
Funds Investment Act and the Investment Policy The modified Investment Policy, Investment
Strategy and approved Brokers, attached hereto as Exhibit"A," is hereby adopted and approved
PASSED, APPROVED, AND ADOPTED this 22nd day of November, A.D , 2021
e —DocuSigned by:
9z
J I� `f9L.E
MAYOR
ATTEST
DocuSigned by:
„,,,,,,,,,,,,,,,,,,,,
CRYSTAL DlROAN, TRM.C, CMCo CITY SECRETARY '�, _`" _
APPROVED AS TO FORM ,• •
IIIII11I
fDooccu\Signed by:
,,,,,,
DA 'PMBRTTOKER
CITY ATTORNEY
Memo
To: Clay Pearson, City Manager
From: Shamaira Jagrup, Treasury Manager
CC: Amy Johnson, Chief Financial Officer
Kristen Woolley, Deputy Director of Finance
Date: October 28, 2021
Re: Investment Policy and Strategy Update
Amended Bank and Investment Authorization
Investment Policy and Strategy Update
The Public Funds Investment Act (PFIA) requires the government body to review its investment
policy, investment strategies, and approved broker/dealers not less than annually. The governing
body must adopt a written instrument by ordinance or resolution stating that it has reviewed the
investment policy, investment strategies, approved broker/dealers, and that the written instrument
so adopted shall record any changes made to the policy, strategy, and broker/dealers. City
Council last approved the policy, strategy, and broker/dealers at the regular council meeting held
November 9, 2020.
Every two years the Texas Legislature meets and may make changes to the PFIA. The Texas
Legislature last met in 2021 but did not approve any amendments to the PFIA. The investment
policy was reviewed by the City’s Deputy Director of Finance and Treasury Manager. There are
no substantive changes recommended to the investment policy in 2021. All changes noted are
considered housekeeping in nature.
The PFIA also requires a separate written investment strategy for each fund or pooled group of
funds. The strategy must address suitability, safety of principal, liquidity, marketability,
diversification, and yield. As such a separate written investment strategy is also included for City
Council approval. There are no substantive changes recommended to the investment strategy in
2021. All changes noted are considered housekeeping in nature.
Amended Bank and Investment Authorization
The Bank and Investment Authorization Form authorizes the City Manager and/or the Investment
Officers of the City to negotiate and execute any and all contracts and other documents incident
to establishing bank and investment account(s) for the purpose of investing in authorized
investments and financial institution deposits.
The Resolution gives the authority to the City Manager and the City's Investment Officers to sign
off on the establishment of bank and investment accounts with approved financial institutions and
investment brokers as per the City’s adopted Investment Policy. This Resolution will allow the
City Manager and/or Investment Officers to take advantage of investment transactions in a timely
manner, that are sometimes sensitive to market conditions and require immediate action.
Otherwise, each individual placement with various financial institutions would have to be brought
before Council, and we would risk the lost opportunity to capture favorable investment returns.
City Council last approved the bank and investment authorization at the regular council meeting
held on November 25, 2019.
The Resolution is being updated to reflect the new titles of the Investment Officers. We are
revising the Director of Finance position name to Chief Financial Officer and the Assistant Director
of Finance name to Deputy Director of Finance. The positions were renamed with the departure
of the Director and Assistant Director. Additionally, the Treasury Analyst position was upgraded
to Treasury Manager in February 2020.
The City’s investment committee met on November 1, 2021 and concur on the recommendations.
The Investment Policy, Investment Strategy, and Approved Broker/Dealers, as well as the
Amended Bank and Investment Authorization will be submitted for approval at the next council
meeting.
Attachments: Draft 2021 Investment Policy & Strategy - Redlined
Draft 2021 Investment Policy & Strategy - Clean
Bank and Investment Authorization - Redlined
Bank and Investment Authorization - Clean