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Regular City Council Meeting
Resolution - Finance:
Consider a resolution approving and adopting the 2020 City of Lubbock Investment Policy and Investment Strategy, as reviewed and recommended by the Audit and Investment Committee.
The Public Funds Investment Act (PFIA) requires the City Council to perform an annual review of the City of Lubbock Investment Policy and Investment Strategy (the "Policy"). The Policy is updated to reflect changes recommended at the Audit and Investment Committee's November 10, 2020 meeting, which are as follows:
Page 3: Increases the maximum maturity days allowed to be invested in commercial paper from 270 days to 365 days. The increase will make the City more competitive when bidding on offerings, and it is authorized by the PFIA under the Texas Government Code § 2256.009(3).
The Debt and Investment Committee also conducts an annual review of the City’s Strategic Asset Allocation and Investment Structure. The changes for FY 2020-21 are as follows:
Page 2: The “Target" U.S. Treasury Obligations decreased from 3% to 1%
Page 2: The “Preferred Range" of investments in the City’s portfolio changed in the following manner:
Agency Bonds decreased 10-15% to 0-15%
The “Target" decreased from 10% to 2%
Municipal Bonds increased from 10-25% to 10-30%
The “Target" increased from 17.5% to 25%
Investment Pools decreased 65-75% to 50-75%
The “Target" decreased 67.5% to 60%
Commercial Paper increased 0-5% to 0-10%
The “Target" increased 1% to 5%
All changes listed above have been made in accordance with the PFIA under the Texas Government Code § 2256.009(3). Our goal is to prioritize safety, liquidity, and yield, as we formulate these adjustments annually, while assessing current market conditions.
D. Blu Kostelich, Chief Financial Officer
Resolution - Audit and Investment Policy and Strategy
2021 Investment Policy
2020-21 Strategic Asset Allocation and Investment Structure
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