Agenda No. 2.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | February 3, 2026 |
| Department: | Finance |
| Subject: | Resolution 26-R-001 - Adopting the City's Investment Policy (S.Gonzalez/J.Walters) |
BACKGROUND
On January 6, 2026, staff brought forward 2 resolutions both titled 26-R-003. One for a Main Street Grant and one to Adopt the Investment Policy. Upon review, it was recommended to repeal both of those resolutions and approve them under different resolution numbers. This item tonight is identical to the January 6, 2026 version and Staff is requesting council approve Resolution 26-R-001 which will repeal the 26-R-003 Adopting the Investment policy and re-adopt the investment policy for 2026.
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The Investment Policy of the City of Schertz outlines the processes the City uses to determine and set its investment strategy. Much of the policy is outlined by Section 2256 of the Texas Government Code, called the Public Funds Investment Act (PFIA), which ensures public entities make safe choices as to how they invest.
The top priority regarding investable public funds in both the Act and in the City Policy is the safety of the funds invested. This means low risk investments that can be easily withdrawn in the event the City needs funding. The City of Schertz Investment Policy requires an annual reaffirmation by City Council. These renewals will start coming in January each year and be for the rest of that calendar year. The Investment Advisory Committee would meet in December to review the plan and any proposed changes.
Due to the election run-offs delaying the assignments of council to the Investment Advisory Committee, the Committee was unable to hold its meeting in December 2025. However, staff must still meet the States requirement of an annual adoption of the policy.
To satisfy both requirements, staff proposes Council adopt the existing policy at this meeting with no changes to meet the state's requirements. Once the election and council assignments are completed, staff will hold the committee meeting to review the policy for changes. If any changes are recommended, an amended policy will be brought back before council for consideration.
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The Investment Policy of the City of Schertz outlines the processes the City uses to determine and set its investment strategy. Much of the policy is outlined by Section 2256 of the Texas Government Code, called the Public Funds Investment Act (PFIA), which ensures public entities make safe choices as to how they invest.
The top priority regarding investable public funds in both the Act and in the City Policy is the safety of the funds invested. This means low risk investments that can be easily withdrawn in the event the City needs funding. The City of Schertz Investment Policy requires an annual reaffirmation by City Council. These renewals will start coming in January each year and be for the rest of that calendar year. The Investment Advisory Committee would meet in December to review the plan and any proposed changes.
Due to the election run-offs delaying the assignments of council to the Investment Advisory Committee, the Committee was unable to hold its meeting in December 2025. However, staff must still meet the States requirement of an annual adoption of the policy.
To satisfy both requirements, staff proposes Council adopt the existing policy at this meeting with no changes to meet the state's requirements. Once the election and council assignments are completed, staff will hold the committee meeting to review the policy for changes. If any changes are recommended, an amended policy will be brought back before council for consideration.