Board of Directors Regular Meeting Agenda


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Meeting Date: 04/27/2016  

SUBJECT MATTER:
Receive, consider and act upon a recommendation from the Investment Committee regarding a Resolution Adopting Investment Policies and Guidelines for The Woodlands Township;
FISCAL IMPACT:
Not applicable
BACKGROUND:
The Public Funds Investment Act (Government Code, Chapter 2256) requires The Woodlands Township to review its Investment Policies annually and approve a resolution adopting such policies.
 
The attached Resolution Adopting Investment Polices and Guidelines for The Woodlands Township was prepared by legal counsel and reviewed by the Township’s financial consultant and Investment Committee.  The policies and guidelines are the same as those adopted in 2015 except for two revisions, summarized below.
 
  • Phase out surety bonds as an acceptable form of collateral to be pledged against the Township’s uninsured time and demand deposits.  Surety bonds would no longer be considered an acceptable form of collateral effective with the start date of the Township’s new banking and depository services agreement, which will be October 1, 2016.  (Please reference yellow highlighted sections on page 6 of Resolution Adopting Investment Policies and Guidelines and page 3 of Exhibit B – Collateral Security Agreement.)
     
  • Inclusion of language allowing for a separate tri-party agreement to be used relative to custodial provisions in the event that the Federal Home Loan Bank (FHLB) of Des Moines is serving as custodian on any of the Township’s accounts.  This would allow the Township to place funds with Amegy Bank, which is now wholly incorporated into Zions Bank, and is tied to FHLB-Des Moines instead of FHLB-Dallas.  Zions/Amegy would still be required to execute and be bound by the Township’s form of Collateral Security Agreement; however, the provisions therein relative to the custodian will default to FHLB-Des Moines’s form of Securities Custodial Agreement.  (Please reference green highlighted sections on page 6 of attached Resolution Adopting Investment Policies and Guidelines and page 9 of Exhibit B – Collateral Security Agreement.) (Also reference separate attachment for FHLB-Des Moines Form of Securities Custodial Agreement.)
 
At its meeting on April 21, 2016, the Investment Committee recommended that the Board of Directors approve Resolution No. 007-16 Adopting Investment Policies and Guidelines for The Woodlands Township, which includes the revisions outlined above.
 
RECOMMENDATION:
Approve Resolution No. 007-16 Adopting Investment Policies and Guidelines for The Woodlands Township.
 
Attachments
Resolution Adopting Investment Policies and Guidelines
FHLB-Des Moines Form of Securities Custodial Agreement


    

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