Res 141-87 8/18/1987RESOLUTION NO. __1g1- (
RESOLUTION MODIFYING RESOLUTION 97-86 TO BRING IT INTO COMPLIANCE
WITH PUBLIC FUNDS INVESTMENT ACT OF 1987.
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 One, Investment Objectives be replaced with the
provisions of the new State Law and it shall read as follows:
SECTION ONE, INVESTMENT OBJECTIVES
Investments shall be made with judgment and care, under
circumstances then prevailing , that 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 income to be derived . Each
investment transaction shall seek to first insure that capital losses
are minimized .
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 successor ; 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, or by Chapter 726,
Acts of the 67th Legislature, Regular Session, 1981 (Article 2529b-1 ,
Vernon ' s Texas Civil Statutes) , and that have a market value of not
less than the principal amount of the certificates; and
6) fully collateralized direct 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 , as defined by the Federal
Reserve, or a bank domiciled in this state.
b ) 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.
c ) In this section:
1 ) "Bond proceeds ' includes but is not limited to proceeds
from the sale of bonds and reserves and funds maintained for debt
service purposes.
2) "Repurchase agreement" means a simultaneous agreement
to buy, hold for a specified time, and then sell back at a future
date, obligations described by Subsection (a) ( 1 ) of this section, the
principal and interest of which are guaranteed by the United States or
any of its agencies, in market value of not less tha the principal
amount of the funds disbursed .
PASSED AND APPROVED this the 1 : a - y of Aug s , 19: .
P
M A 0 R
ATTEST:
ydc
City Clerk