Title
Consider approving Resolution No. 2026-075 adopting the City of Farmers Branch Investment Policy; and take appropriate action.
Body
REQUESTOR:
Finance Department
BACKGROUND:
The City’s investment policy provides a clear framework for managing, protecting, and investing public funds responsibly. It helps ensure transparency, accountability, and compliance while maximizing the value of taxpayer dollars. A strong investment policy reflects prudent financial management and reinforces the City’s commitment to protecting and responsibly managing public funds on behalf of the community.
The Texas Public Funds Investment Act, established in Chapter 2256 of the Texas Government Code, requires that the City adopt an investment policy to ensure it operates in accordance with these statutory requirements. Each Texas municipality is also required to review its Investment Policy and Strategies annually.
Key requirements for the written policy include:
• Emphasize the safety of principal and liquidity (suitability, marketability, diversification, and yield);
• Address investment diversification yield, maturity, and the quality and capability of investment management; and
• Include authorized investments, maximum maturity, market price monitoring, and settlement.
This policy has been reviewed by the City’s Investment Advisor, Hilltop Securities Asset Management, LLC, and was approved unanimously by the City’s Investment Committee on April 28, 2026. This was also reviewed by the independent auditor, Forvis.
DISCUSSION:
Approval of Resolution No. 2026-075 will adopt the City’s Investment Policy as well as associated strategies for investing public funds.
City staff will be available to answer any questions the Council may have.
FISCAL IMPACT:
Maximize investment return within Investment Policy requirements.
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2026-075 as presented.
2. I move to approve Resolution No. 2026-075 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Resolution No. 2026-075
2. Exhibit A - Investment Policy June 2026