1992-01-13 Regular Meeting - Laserfiche WebLink

Browse Search

• On September 1, 1989, local government investment pools became author- ized investments for the majority of public entities in Texas. The Interlocal Cooperation Act (Tex. Rev. Civ. Stat. Ann. art. 4413 et sue.) was amended by the 71st Texas Legislature to facilitate the creation of local government investment pools in Texas. This act permits the creation of investment pools to which any political subdivision ("local government") in Texas may delegate, by contract, the authority to make investments purchased with local invest- mentfunds and to hold legal title as custodian of the investment securities. In 1986, the 69th Texas Legislature authorized the State Treasurer to incorporate aspecial-purpose trust company called the Texas Treasury Safekeeping Trust Company (the "Trust Co."). The Trust Co. has direct access to the services of the Federal Reserve Bank and performs other trust company activities. It is specifically authorized to manage, disburse, transfer, safekeep, and invest public funds and securities more efficiently and eco- nomically" (Sec.404.102 et sec .., Texas Government Code). The Trust Co. has created the Texas Local Government Investment Pool ("TexPool") as a public funds investment pool. Eligible participants include, but may not be limited to, state agencies, cities, counties, villages, utility districts, school districts, junior college districts, community college districts, other special districts, arrd any legally constituted political subdivision in the State of Texas. GOAL AND OBJECTIVE The goal of TexPool is to offer the attractive yields of various authorized short-term investments, such as repurchase agreements, to local govern- ments. Local governments have been reticent to enter these sophisticated investment markets for lack of staff expertise and the costs associated with -1-