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HomeMy WebLinkAboutR-2003-36 participation in Texstart Investment Pool ". . . . RESOLUTION" - !JI)63- 3., RESOLUTION AUTHORIZING PARTICIPATION IN THE TExSTAR INVESTMENT POOL The undersigned local government (Applicant) applies and agrees to become a Participant in the Texas Short Term Asset Reserve Program (TEXSTAR). 1. Authorization. The governing body of Applicant has duly authorized this application by adopting the following resolution at a meeting of such governing body duly called, noticed, and held in accordance with .!hf Texas Open Meeting Law, chapter 551, Texas Government Code, on "2-)( , 2~ WHEREAS, it is in the best interests of this governmental unit (City of La Porte) to invest its funds jointly with other Texas local governments in the Texas Short Term Asset Reserve Program (TEXST AR) in order better preserve and safeguard the principal and liquidity of such funds and to earn an acceptable yield; and WHEREAS, Applicant is authorized to invest its public funds and funds under its control in TEXST AR and to enter into the participation agreement authorized herein; NOW, THEREFORE, BE IT RESOLVED THAT: SECTION 1. The form of application for participation in TEXST AR attached to this resolution is approved. The officers of Applicant specified in the application are authorized to execute and submit the application, to open accounts, to deposit and withdraw funds, to designate other authorized representatives, and to take all other action required or permitted by Applicant under the Agreement created by the application, all in the name and on behalf of Applicant. SECTION 2. The TEXSTAR Investment Policy is adopted as Applicant's investment policy, the TExSTAR investment officers are designated as Applicant's investment officers, and the TEXSTAR Board is designated as custodian and depository, in each case for Applicant's public funds and funds under its control that are deposited with TEXST AR. Unless Applicant provides a contrary investment policy to TEXST AR, it shall be Applicant's investment policy that any or all of its public funds and funds under its control may be invested and through TEXST AR. SECTION 3. This resolution will continue in full force and effect until amended or revoked by Applicant and written notice of the amendment or revocation is delivered to the TEXSTAR Board. SECTION 4. Terms used in this resolution have the meanings given to them by the application. 2. Agreement. Applicant agrees with other TExST AR Participants and the TExST ARBoard to the Terms and Conditions of Participation in TEXST AR, effective on this date, which are incorporated herein by reference. Applicant makes the representations, designations, delegations, and representations described in the Terms and Conditions of Participation. 3. Authorized Representatives. Each of the following Participant officials is designated as Participants Authorized Representative authorized to give notices and instructions to the Board in accordance with the Agreement, the Bylaws, the Investment Policy, and the Operating Procedures: . . Name Sie:nature Title Direct Phone Cynthia Alexander Assistant City Manager 281-471-5020 :::~~t.fi.;.~~~:~I~~::::::::::":::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::':..:::::::.::.:::.~~fl.J.1~~~~~~~~;l~}~~~~~.:.:.:':'::::::::::::::~:H~:H~~~~~:::::::::::: The following Participant official listed above is designated as the Primary Contact and will receive all TEXSTAR correspondence including transaction confirmations and monthly statements [required]: Name ..................J?h~.U.~y...:w:Ql!!y............................ E-mail Address ........~.QJ~y~@~t:J.~~p.Qr.!~.:.~.:~~......... The following Participant official not listed above is designated as a Participant Inquiry Only Representative authorized to obtain account information [optional]: Name Sie:nature Title Applicant may designate other authorized representatives by written instrument signed by an existing Applicant Authorized Representative or Applicant's chief executive officer. 4. Taxpayer Identification Number. Applicant's taxpayer identification number t~..............?4..7.(?.Q.QJ.,?..~.7................ 5. Bank Information Sheet(s). The attached [insert quantityL....Qn~...c.l) Bank Information Sheet(s) is or are approved and incorporated herein by reference to establish account(s) in the name of Applicant. PASSED AND APPROVED this th~ day of (){COlI!fl a()!J3 ATTEST: ~ OF LA PORTE, TEXAS ~JH~? annan Malone, M~ ~~ Knox Askins, City Attorney ., . REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 8. 2003 Appropriation Requested By: CynthiSll AllI'YlIndl'r Source of Funds: Nt A Department: Fiaaace Account Number: NtA Report: Resolution: X Ordinance: Amount Budgeted: NI A Exhibits: Application for Participation in TEXST AR Exhibits: Bank Information Sheet Amount RequeMed: ~/& Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION The State of Texas has authorized municipality participation in local government investment pools. A local government investment pool is an efficient method for public entities to combine their idle cash to maximize interest income, and there are several different pools operating in the State. Currently the City participates in two Investment Pools - LOGIC and TEXPOOL, with balances of $3,812,220.90 & $21,315,002.84 respectively. The Texas Short Term Asset Reserve Program (TexST AR) Investment Pool was started in 2002 and has historically out-performed each of our current pools. We would like to open an account with TexSTAR with an initial investment of $1,500,000, which will be transferred from the TEXPOOL Investment Account. Further participation will be dependent on both market conditions and overall pool performance. There are currently over 200 public entities that are members of TexST AR, which had an average daily invested balance of over $1.8 billion dollars in 2003. As with most pools, they are consistently higher than the T-Bill yield. Action Required by Council: Approval of Participation in the TEXSTAR Investment Pool !J-3-()3 Date