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Home » Code of Ordinances » CHAPTER 1 GENERAL PROVISIONS » ARTICLE 1.700 FINANCIAL POLICY

Sec. 1.701 Policy Established

(a) The City of Oak Leaf, Texas adopts this financial policy which establishes the basic financial policies of the city.

(b) Twice a year, the mayor will review with the council, the status of where the city’s funds are invested, what rate of return is being achieved; and the timing if any, for renewals. The city council will, upon getting this review advise the mayor of any changes, in how the funds are invested, that should be considered.

Sec. 1.702 Selection of Investments 

The city’s investment policy includes the following objectives: Safety of capital, liquidity, diversification; and standard of care. In selecting investments for city funds, the following procedures shall be implemented.

(1)  Safety of Capital.

(A) Invest in securities which are tacked by the full faith and credit of the United States Government, such as U.S. Treasury Bills, etc;

(B) Invest in securities, which are agencies of the U.S., Government, such as Agency Discount Notes (Federal Farm Credit Bank; Federal Home Loan Bank Board; etc.);

(C) Obtain a Certificate of Collateralization for all funds in excess of $100,000.00 on deposit in a bank, savings and loan or other qualified financial institution; and

(D) Obtain all necessary Certificates of Deposit when investing in bank C.D.’s.
 
(2) Liquidity. Maintain an amount equal to two months operating costs in a qualified money market fund for the use of day-to-day operating costs and select securities with maturity dates which ensure the timely availability of funds as discussed below.

(3) Length of Investment. Copies of the C.D. Implied Forward Rates and U.S. Treasury Bill Implied Forward Rates reports as published by Bloomberg will be obtained which the staff will use as a guide in determining the length of investments. The funds will be invested for such lengths of time which ensure availability of funds to meet debt service requirements and the day-to-day operations of the city.

(Ordinance 2002 adopted 3/8/00)

Sec. 1.703 Disbursement of Funds/Purchasing Policy

(a) Purpose. This policy outlines the persons with authority to acquire goods and services on behalf of the city and the principles upon which such acquisitions should be made. It also provides for the internal guidance of employees of the city.

(b) Policy. This policy applies to the acquisition of all goods and services made on behalf of the city, including all capital expenditures.

(c) Authority. No person shall commit the city to agreements, licenses, contracts, leases, or other legally enforceable obligations unless authorized to do so by the mayor and city council.

(d) Principles. The acquisition of goods for the city will be conducted in accordance with the following principles:

(1) Probity. The highest level of personal and organizational integrity must accompany each transaction.

(2) Performance Measurement. Transactions will be evaluated according to contractual standards agreed upon by the city and the supplier.

(3) Best Value. Each decision should be made in the overall best interest of the city and its end users through the appropriate weighting of all decision making factors.

(4) Open and Fair Access. The supply community should be aware of, and permitted to compete for, supply opportunities in their demonstrated field of expertise.

(e) Procedures. All purchases over $3,000 must be approved by the city council. All purchases under $3,000 but more than $1,000 must be approved by the mayor or city council. Purchases under $1,000 may be authorized by the city secretary if they are necessary for the day-to-day activity of the city. The city secretary’s name shall be used as the purchase representative, and no purchase orders are required.

(d) Authority.

(1) The mayor, city secretary and assistant city secretary are authorized to issue checks for payment of all routine bills for the day-to-day operations of the city.

(2) The city council shall appoint persons necessary for the check signing duties of the city. These shall include but not be limited to the mayor, city secretary, assistant city secretary and other city council members as deemed necessary. Two signatures will be required for each check on each account issued.

(Ordinance 0412 adopted 12/14/04)

Sec. 1.704 Gifts

(a) In instances where the city purchases from suppliers of goods or services it is expected that council members and staff will not solicit or accept a gift, personal favor or other thing of value which might interfere or be thought to interfere with the independent exercise of this judgment in the best interest of the city.

(b) As in the case of other types of conflicts of interest, it is improper to evade these prohibitions by carrying out such activities indirectly through a spouse, child, or other relative, friend or other means.

(c) It is not improper to give or receive advertising novelties or items of modest value legitimately used in the business community. Extended entertainment, expensive gifts or unusual favors raise justifiable suspicions that are given to create an obligation inconsistent with our responsibility to the city. No city official, or employee, may offer to give, directly or indirectly, any money or thing of significant value to a supplier or anyone if it could reasonably be viewed as being done to influence the recipient’s judgment.

(Ordinance 2002 adopted 3/8/00)