The Town’s Statement of Investment Policies (“Investment Policies”) has been prepared to comply with Chapter 2256 of the Texas Government Code (“Public Funds Investment Act”), and Chapter 2257 of the Texas Government Code (“Public Funds Collateral Act”), as well as to reflect the Town’s investment strategies.
The primary investment strategy and objectives of the Town are (in priority order):
- Safety and preservation of principal;
- Maintenance of sufficient liquidity to meet operational needs; and
- Optimization of a market rate of return (yield).
The Public Funds Investment Act and the Investment Policies requires at least an annual review of established policies by the Town Council.
The proposed changes to the Investment Policies are relatively minor as summarized below:
- Updated policy section 2.2.4 to more closely align with the Public Funds Investment Act;
- Added reference to the National Credit Union Share Insurance Fund ("NCUSIF"), where appropriate, throughout the policy; and
- Various other non-substantive administrative type updates.
The NCUSIF is a federal fund backed by the full faith and credit of the U.S. government that provides deposit insurance for accounts up to $250,000 applicable to deposits with credit unions. While permissible, the Town currently does not hold any deposits with any credit union.
The current policy was awarded the Certification of Investment Policy by the Government Treasurers' Organization of Texas ("GTOT") for the two-year period ending May 31, 2025. Upon approval, this policy will be submitted to the GTOT for consideration of the policy award. It is anticipated this policy will once again receive the policy award.