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Mineral Wells council narrows investment policy, ends staff investment committee and approves four broker-dealers
Summary
The council readopted the city's investment policy to comply with the Texas Public Funds Investment Act, removed a position-based investment committee, narrowed allowable instruments, and approved four qualified brokers/dealers for investment transactions.
The Mineral Wells City Council voted 7-0 on July 1 to readopt the city's investment policy, remove the previous position-based investment committee from delegated authority, narrow permitted investment instruments and approve a short list of qualified broker-dealers.
City staff told the council the action satisfies requirements under the Texas Public Funds Investment Act (Texas Government Code Chapter 2256) to maintain a written investment policy, conduct an annual review, present quarterly investment reports and maintain an approved broker-dealer list. Staff said the city last completed this review in January 2024 and worked with Valley View Consulting on recommended changes.
Key changes recommended in the policy update include adding mission/vision/goals language, clarifying investment authority, revising formatting for consistency with other policies, eliminating the prior investment committee (previously the city manager, director of finance and city clerk) and assigning investment selection authority to the city manager and finance staff with council oversight for items requiring council action. Staff also said they will continue quarterly reporting and intend to move to monthly reporting as the reporting program is formalized.
Staff reported the city's portfolio sits just under $26,000,000 and recommended narrowing permitted investments to exclude bankers' acceptances, securities lending, commercial paper and guaranteed investment contracts while retaining more traditional instruments allowed under the Public Funds Investment Act. A councilmember asked whether those narrower choices follow best practices; staff replied they do and said the narrower list reduces complexity and potential conflict-of-interest disclosure burdens.
On a related resolution, the council approved, 7-0, four broker-dealers qualified to engage in investment transactions with the city: FHN Financial (a division of First Horizon Bank), Hilltop Securities, Samco Capital Markets and Wells Fargo Securities. Staff said those firms were selected through an RFP conducted with the city's consultant and will be certified under SEC Rule 15c3-1; they would be used when specific investments require broker-dealer services.
A councilmember moved to adopt the investment-policy resolution; that motion carried 7-0. The council subsequently approved the broker-dealer list by separate motion, which also passed 7-0. Staff said the city will file the adopted investment policy with the Texas State Treasury (government treasurer) for certification.
