Title
Consider/Discuss/Act on an Application for Participation in the Local Government Invest Cooperative (LOGIC)
Summary
ITEM SUMMARY:
• In order for a governmental entity to enroll in the Local Government Investment Cooperative (LOGIC), the following procedures should be performed.
• Submit the Resolution in the form entitles Application for Participation in LOGIC to the entity’s governing body for approval
• Complete and sign the Application for Participation in LOGIC.
• Complete a Bank Instruction Form for each account to be opened
• LOGIC is a AAA rated investment program tailored to the investment needs of Texas local governments.
• Local officials can improve the return on their invested balances by pooling their money with other entities to achieve economies of scale in a conservative fund in full compliance with the Texas Public Funds Investment Act.
• LOGIC maintains 3 primary goals for investing public funds:
Safety:
o Investments are subject to the strict requirements of the Public Funds Investment Act.
o LOGIC is a "Constant Dollar" net asset value pool.
o Portfolio securities are marked-to-market daily.
o Repurchase agreements are fully collateralized with U.S. Government securities.
o Transaction confirmations and monthly statements are provided to all participants.
o Monthly participant newsletters provide all information required under the Public Funds Investment Act.
Liquidity:
o Customers have same day access to invested funds with the latest deadlines available.
o Wire, ACH and internal account transfers are free of charge.
o Transactions have no minimum or maximum amounts.
o Account balances have no minimum balances.
o Number of participant accounts are unlimited.
o Payments can be made directly to vendors.
o Deposits earn interest the day of deposit.
Yield:
o Rates change on a daily basis.
o Rates are quoted and published net of fee.
• In investing funds under its control, the Corporation shall primarily emphasize the safety, liquidity, and yield of its investments, and shall also consider the suitability, preservation of principal, marketability, and maturity of each investment as well as diversification of its investment portfolio
• The Corporation, in investing funds under funds under its control, shall invest with judgement and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, consideration the probable