HomeMy WebLinkAboutR-2003-36 participation in Texstart Investment Pool
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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
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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:
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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~
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Knox Askins, City Attorney
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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