Res 052-90 3/6/1990RESOLUTION NO. ro - IO
RESOLUTION MODIFYING RESOLUTION 97-86 TO BRING IT INTO COMPLIANCE
WITH PUBLIC FUNDS INVESTMENT ACT OF 1987, AND THE RECENT CHANGES
FROM THE 71ST TEXAS LEGISLATURE IN SENATE BILL 1342, AND
AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACTS IN
COMPLIANCE WITH THE AUTHORIZED INVESTMENTS HEREIN.
WHEREAS, Resolution 97-86 established the investment procedures
for the investment of local funds and ;
WHEREAS, such policies and rules have been prepared and submitted
to the City Council for approval ;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF WICHITA
FALLS, TEXAS, THAT:
That Section Two , Authorized Investments, be replaced with the
provisions of the new State Law and it shall read as follows:
SECTION TWO, AUTHORIZED INVESTMENTS
a) The city may, in accordance with this Act , purchase, sell ,
and invest its funds and funds under its control in the following :
1 ) obligations of the United States or its agencies and
instrumentalities;
2) direct obligations of the State of Texas or its agencies;
3) other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the State of Texas or the
United States;
4) obligations of states, agencies, counties, cities, and other
political subdivisions of any state having been rated as to investment
quality by the nationally recognized investment rating firm and having
received a rating of not less than A or its equivalent ;
5) certificates of deposit issued by state and national banks
domiciled in this state that are:
A) guaranteed or insured by the Federal Deposit Insurance
Corporation, or its successors; or
B) secured by obligations that are described by
Subdivisions ( 1 )-(4) of this subsection, which are intended to include
all direct agency or instrumentality issued mortgage backed securities
rated AAA by a nationally recognized rating agency, and that have a
market value of not less than the principal amount of the certificates
or in any other manner and amount provided by law for deposits of the
investing entities;
6) prime domestic bankers ' acceptances with a stated maturity of
270 days or less, that will be liquidated in full at maturity, are
eligible for collateral for borrowing from a Federal Reserve Bank , and
are accepted by a bank (or a bank holding company for which the bank
is the largest subsidiary) the short-term obligations of which are
rated at least A-1 , P-1 or the equivalent .
7) commercial paper with a stated maturity of 270 days or less
that is either rated not less than A-1 or P-1 by two nationally
recognized rating agencies or is rated at least A-1 or P-i by one
nationally recognized rating agency and is fully secured by a letter
of credit issued by a bank .
8) fully collateralized direct repurchase agreements and reverse
security repurchase agreements having a defined termination date,
secured by obligations described by Subdivision ( 1 ) of this
subsection, pledged with a third party selected or approved by the
political entity, and placed through a primary government securities
dealer .
9) In addition to investment in obligations, certificates, or
agreements described in Subsection (a) of this section, bond proceeds
of the city may be invested in common trust funds or comparable
investment devices owned or administered by banks domiciled in this
state and whose assets consist exclusively of all of a combination of
the obligations described by Subdivisions ( 1 )-)4) and (6) of
Subsection (a) of this section. Common trust funds of banks domiciled
in this state may be used if they:
1 ) are available;
2) comply with the provisions of the Tax Reform Act of
1986 and applicable federal regulations governing the investment of
bond proceeds; and
3) meet the cash flow requirements and the investment
needs of the city.
10) invest up to 20% of its monthly average fund balance
excluding bond proceeds) in Security Exchange Commission registered
no-load money market mutual fund with a dollar weighted average
portfolio of 120 days or less whose assets consist exclusively of
obligations described above and whose investment objectives include
seeking to maintain a stable net asset value of $1 per share. No
entity may invest funds in any one money market mutual fund in an
amount that exceeds 10% of the total assets of the money market mutual
fund .
11 ) Public Funds Investment Pool . This 71st Legislative session
also saw the enactment of S.B. 1340. This law amended the interlocal
Cooperation Act , TEX . REV. CIV. STAT. ANN. art . 4413 and the Public
Funds Investment Act to authorize " local governments" (which is
defined to include all cities, counties, school districts and any
other legally constituted political subdivision of the State of Texas)
to designate an investment officer and to delegate, by contract , the
authority to act as custodian of investments purchased with local
investment funds. A public funds investment pool may purchase, sell
or invest its funds in the following :
1 ) obligations of the U.S. or its agencies and
instrumentalities,
2) direct obligations of the State of Texas or its
agencies,
3) other obligations, the principal of and interest on
which are unconditionally guaranteed or insured by Texas or the U.S. ,
4) obligations of states, agencies, counties, cities and
other political subdivisions that have received a rating of not less
than A,
5) certificates of deposit issued by state and national
banks and savings and loan associations, domiciled in Texas that are:
a) guaranteed or insured by FDIC or FSLIC, or
b ) secured by obligations described in 1-4 above,
which are intended to include all direct agency or instrumentality
mortgage backed securities rated AAA and have a market value of not
less than the principal amount of the certificates.
6) fully collateralized direct repurchase agreements
having a defined termination date, secured by obligations described in
1-4 above, pledged with a third party and placed through a primary
government securities dealer or a bank domiciled in Texas.
In order to utilize the authorized investments noted in Section
Two , the City Manager is hereby authorized to sign contract (s) with
such institutions that conform to the guidelines noted herein.
PASSED AND APPROVED this the 6th day of March , 1990.
M A Y O R.*
C")/( -
ATTEST:
I i
City Clerk