Agenda - View Meetings (All)

AI# 11178 Image of Lubbock City Logo 2021

Regular City Council Meeting

5.4.

12/13/2022:

Information

Agenda Item

Resolution - Finance: Consider a resolution approving and adopting the 2023 City of Lubbock Investment Policy and Investment Strategy, as reviewed and recommended by the Audit and Investment Committee.

Item Summary

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 annually to reflect changes recommended to the Audit and Investment Committee. For the FY 2023 Investment Policy, the City and the Audit and Investment Committee are not recommending any changes to the existing policy.

The Debt and Investment Committee also conducts an annual review of the City's Strategic Asset Allocation and Investment Structure. The changes for FY 2021-22 are as follows:

1. Page 2: The "Target" U.S. Treasury Obligations decreased from 5% to 2.5%
2. Page 2: The "Target" Agency Bonds increased from 10% to 20%.
3. Page 2: The "Target" Investment Pools decreased from 50% to 40%.
4. Page 2: The "Target" Commercial Paper increased from 5% to 7.5%.
5. Page 2: The "Preferred Range" of investments in the City's portfolio changed in the following manner:

• Agency Bonds increased 0-15% to 0-25%.
• Investment Pools decreased 50-75% to 40-75%.

All changes listed above have been made in accordance with the PFIA under the Texas Government Code § 2256.009(3). The goal is to prioritize safety, liquidity, and yield, as the formulation of these adjustments is made annually, while assessing current market conditions.

Fiscal Impact

None

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer
Audit and Investment Committee

Attachments

Resolution

Investment Policy and Investment Strategy

Strategic Asset Allocation and Investment Structure