City investment policy earns certification

The City of San Angelo investment policy crafted by the Finance Department has earned a certification from the Government Treasurers’ Organization of Texas for reflecting standards that are legally compliant and financially prudent.

To earn the two-year certification, which extends through July 31, 2016, a governmental entity must adopt a policy that meets the requirements of the Texas Public Funds Investment Act and the GTOT’s standards for prudent public investing.

The City of San Angelo’s investment portfolio is worth more than $112 million in cash and investments. Of that, 58 percent is invested in bonds and securities and 36 percent in investment pools that preserve principal, liquidity and yield while minimizing risk.

“Our top priority when investing City funds is safety because of our fiduciary responsibility to the taxpayers,” Finance Director Tina Bunnell said. “Second, we look at liquidity to ensure that funds are available when needed to make expenditures. And finally, we consider yield or rate of return.” 

The City’s investments are guided by an Investment Oversight Committee that meets quarterly with an investment adviser. Its membership, which is appointed by the City Council, includes the Finance director, two City Council members (currently Charlotte Farmer and Rodney Fleming), two citizens with experience as investment advisers or analysts, and the City’s independent auditor, who is a non-voting member.

The certification represents the third honor garnered by the Finance Department since May. Previously, the department earned the:

• Gold Leadership Circle Award for financial transparency from the state comptroller.
• Distinguished Budget Presentation Award for the City’s 2013-14 budget from the Government Finance Officers Association of the United States and Canada.

The Government Treasurers’ Organization of Texas promotes the educational and professional development of people who perform the treasury function in governmental organizations.