§ 70-463. Investment strategy

(a) Generally. The county maintains portfolios which utilize four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios.

(b) General operating funds. The county's investment strategy for general operating funds shall be made to ensure that anticipated cash flows are matched with adequate investment liquidity.

(c) Bond operating funds. The county shall utilize an investment policy for bond operating funds to generate a dependable revenue stream for the appropriate debt service funds consistent with the county investment policy and state law.

(d) Debt service funds. The county shall utilize as the primary objective for the investment of debt service funds adequate liquidity to cover the debt service obligation of the county on required payment dates. Investments shall not have a stated final maturity date which exceeds the appropriate debt service payment date.

(e) Special and trust funds. The county shall invest special and trust funds in accordance with state law and the county investment policy to the maximum ability that such investments may benefit the county directly, or utilize said funds in a method that such funds may benefit the county indirectly.

(f) General strategy.

(1) The county's investment portfolio shall consist of a variety of securities which may include any or all of the authorized investments listed in section 70-267.

(2) It shall be the general practice of the county to utilize an investment strategy based on section 70-262, which also defines yield objectives, as well as V.T.C.A., Government Code § 2256.006, and shall participate in a daily auction of funds for investment through contracted financial brokers and/or banks to the highest and best bidder or invest funds directly with the depository bank and expect that all related collateral confirmations thereto be confirmed and received within the required time frames. The county shall in general be conservative in its investment programs consistent with section 70-268 as administered by a qualified, capable investment staff in the county treasurer's office. All investments shall be collateralized at a minimum of 103 percent of par value.

(3) It is the county's intent to hold purchased securities to the stated maturity date and to have invested in such a manner to insure both the safety and liquidity of such transaction. In the event, however, the need arises to sell securities before the stated maturity date, said securities shall be analyzed to determine the appropriate time to liquidate said securities and minimize any potential real or book value loss to the county.

(4) The county investment portfolio shall not exceed a weighted average maturity life of two years for the entire investment portfolio.

(Ord. No. 99-2004, § III, 10-26-1999; Ord. No. 2000-2287, § III, 11-14-2000)