(A) Acceptable investments under this policy shall be limited to the instruments listed below and as further described by the Public Funds Investment Act:
(1) Obligations of the United States Government, its agencies and instrumentalities, and government sponsoring enterprises, not to exceed one year to stated maturity, excluding collateralized mortgage obligations (CMOs);
(2) Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed one year to stated maturity; and
(3) Constant dollar Texas Local Government Investment Pools as defined by the Public Funds Investment Act.
(4) Interest bearing bank deposits insured by the FDIC are authorized investments.
(B) If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment by the city until this policy has been amended and the amended version approved by the City Council.
(C) All securities, including certificates of deposit, will be purchased or sold after three offers/bids are taken to verify that the city is receiving fair market value/price for the investment.
(D) All security transactions entered into by the city shall be conducted on a delivery versus payment (DVP) basis.
(Ord. 1303, passed 9-21-2006; Ord. 19-1236, passed 11-7-2019)