Title
Consideration of and action on a resolution authorizing and approving participation authorization in the LocalTrust Texas Investment Pool.
Body
Summary:
The Public Funds Investment Act (PFIA), Chapter 2256, Texas Government Code and the City’s investment policy authorize the use of Local Government Investment Pools as an authorized investment. Local Government Investment Pools are an investment vehicle for Texas local governmental entities designed to provide daily liquidity while generating current income and preserving capital through investments only in permitted securities under the Public Funds Investment Act with the investment objectives, in order of priority: Preservation and safety of principal; Liquidity; and Yield. Pools are designed to provide municipalities with a cash-management investment option that offers a secure, liquid, and cost-effective way to invest idle cash by leveraging economies of scale, professional management, and diversification.
The City has previously adopted resolutions to participate in three separate Local Government Investment Pools: TexPool, TexStar, and Texas Class. To further diversify the City’s investment portfolio, participation in a fourth Pool, LocalTrust Texas, is requested. LocalTrust Texas is a new state-registered Pool administered by BOKF,NA designed for Texas municipal and public sector entities. LocalTrust is AAAm rated by Standard and Poors with a policy to maintain a constant Net Asset Value (NAV) of $1.00 per share. LocalTrust Texas Government Pool is designed to invest in government-only securities as authorized by PFIA.
Participation in an LGIP must be authorized by the governing body of the entity by rule, order, ordinance, or resolution.
Should participation be approved, Marcia Nicole Ganey, Director of Finance, shall be considered the City’s designee with the Pool and the following representatives shall be designated as authorized signers to transmit funds, withdraw funds, and/or take all ot...
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