Sterling City ISD Investment Policy

APPROVED 08-30-10

· All investments shall comply with the Public Funds Investment Act, and all federal, state, and local statues, rules, or regulations.

· Investments shall be made in accordance with this policy as approved by the Sterling City ISD Board of Trustees. The investment policy must primarily emphasize:

1. Safety

2. Liquidity

3. Yield

· This Investment policy will be reviewed annually.

· The Sterling City ISD Board of Trustees has designated the Superintendent as the investment officer for the District.

· The Superintendent will receive the required training relating to the investment responsibilities under the Public Funds Investment Act.

· The written investment policy is as follows:

“The Board of Trustees has selected The First National Bank of Sterling City as the Depository. Accounts and transactions will be based on the bid form submitted by The First National Bank of Sterling City and the Depository contract between the District and the Bank.

Historically, the Board has decided that District funds be invested in a very conservative method. In past years, some of the surplus funds were invested in Certificates of Deposit. Later, because of the low interest rates, the Board decided that revenue funds were to be invested into a Money Market Deposit Account.

The Board has not directed the Superintendent to invest District funds in investment types, other than those previously listed.”

· For 2010 - 2011:

1. Continue with the investment of the 2010 M&O Ad Valorem taxes with TexSTAR.

2. Continue with the investment of the 2010 I&S Ad Valorem taxes with FNB of Sterling City.

3. Continue with the investment of the bond money for Capital Projects with FNB of Sterling City. (CD #1706)

4. All other District funds will continue to be deposited/invested with the FNB of Sterling City.