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City finance director recommends no change to Richardson’s investment policy after annual review
Summary
The city’s director of finance reviewed the annual investment policy required by state law, reaffirmed current guidelines and outlined the role of Hilltop Securities as the city’s investment advisor; staff will bring a resolution to the Oct. 20 agenda to reaffirm the policy and add an assistant controller to TEXPOOL signatories.
Todd Gastroff, Director of Finance, briefed the Richardson City Council on the city’s annual investment‑policy review, a requirement under state law. Gastroff said there have been no changes in state law that would require policy updates and staff is not recommending any changes to the current investment policy.
Gastroff explained the city’s investment objectives — safety, liquidity, then yield — and described allowable investments under the Public Funds Investment Act (PFIA), including U.S. Treasuries, federal agency obligations (excluding direct mortgage‑backed securities for investment), local government investment pools and money market funds that maintain a constant $1.00 per‑share value. He described collateralization practices for bank deposits that exceed FDIC limits and noted the city’s use of a third‑party custodian and delivery‑versus‑payment settlement to reduce settlement risk.
Gastroff also described the city’s contract with Hilltop Securities, which provides access to a wider institutional broker pool and trading desk; he said the city received its 14th Government Treasurers Organization of Texas award for best practices in treasury management. He noted staff will present a resolution on Oct. 20 to formally adopt the reviewed policy and a housekeeping TEXPOOL resolution to add the assistant controller as an authorized trader on the pool platform.
Ending: Council offered no substantive changes during the discussion. Gastroff said staff will present the investment policy and TEXPOOL resolution for formal consideration on the Oct. 20 agenda.
