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BACKGROUND
The City's current Investment Policy was reviewed by City Council on November 14, 2022, in accordance with the Public Funds Investment Act (PIA). The PFIA requires that the Investment Policy be reviewed annually by the City Council and the Board of all component units.
OVERVIEW
The Investment Policy approved by City Council for FY2022-2023 included the following changes:
POLICY CONSIDERATIONS
The recommended policy for adoption is in compliance with the PFIA.
RECOMMENDATION
Accept the City of Sachse Investment Policy for FY 2022-2023, as adopted by the City Council on November 14, 2022.
BACKGROUND
The Finance Department provides a Quarterly Investment Report to provide an overview of investment activity details for Checking, Money Market, Investment Pool, and Certificate of Deposit accounts. The same Quarterly Investment Reports were accepted by City Council.
The annual property tax allocation is directed to pay back advance funding of utility infrastructure projects previously undertaken within the boundaries of the PGBT Reinvestment Zone (TIRZ #1). Therefore, the PGBT Reinvestment Zone (TIRZ #1) Fund retains a minimal amount of cash, of which, only a portion is available for investment.
Beginning with the first quarter of fiscal year 2022-2023, the format of the investment report has been revised to eliminate redundancies and to make the report more understandable.
POLICY CONSIDERATIONS
Texas Government Code 2256.023 of the Public Investment Act (PFIA) requires not less than quarterly, the investment officer prepare and submit a written report of investment transactions for all funds covered by the Investment Policy and that the report shall be presented not less than quarterly to each governing body within a reasonable time after the end of the period. The City's Investment Policy is to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of Sachse and conforming to the PFIA and all other State and local statutes governing the investment of public funds.
RECOMMENDATION
Approve the Quarterly Investment Reports for the fourth quarter of the 2021-2022 fiscal year and the first, second, and third quarters of the 2022-2023 fiscal year.
OVERVIEW
The Tax Increment Reinvestment Zone #1 (TIRZ #1) "PGBT Reinvestment Zone" was created in 2003, and the base year began with property values as a January 1, 2003. The zone was created for a period of 25 years.
The taxable value increment as of October 1, 2022, was $71,731,719 and the 2022-2023 fiscal year tax receipts totaled $467,107. The total accumulated tax collections from all years total $1,468,552.
To date, taxes received less expenditures have been transferred to the Utility Fund and the Sachse Economic Development Corporation (EDC) for reimbursement of infrastructure projects within the zone, as previously approved by the TIF #1 Board and City Council. The cost of construction of the waterline advance funded by the Utility Fund was $1,150,934 and is fully reimbursed as of fiscal year 2022-2023. The amount advanced by the EDC for the sewer project was $1,074,272 with $224,000 remaining to be reimbursed. Full reimbursement of the sewer project is anticipated in fiscal year 2023-2024.
POLICY CONSIDERATIONS
Before the end of each fiscal year, the estimated ending cash balance in the PGBT Reinvestment Zone (TIRZ #1) Fund shall be transferred to the Utility Fund and the EDC until the Utility Fund and the EDC are fully reimbursed.
RECOMMENDATION
Accept the PGBT Reinvestment Zone (TIRZ #1) Incremental Values and Annual Report for Tax Year 2022 (Fiscal Year 2022-2023).