SUBJECT
title
Approve Resolution 2025-33 to Amend Resolution 2023-08 for the PRWC Investment Policy (Action)
body
DESCRIPTION
The original PRWC Investment Policy was approved in April 2023 to allow for Truist Bank to secure authorized investments as collateral for the PRWC interim financing bank loan. The original Investment Policy was modeled after a large water supply authority with a long operating history and a broader need for investment portfolio control. Currently, there is not a need for such an extensive policy given PRWC’s level of surplus funds, capital expenditures, and small staff.
The revisions made to the PRWC Investment Policy are to simplify the policy, in addition to placing primary emphasis on preservation of principal and liquidity, by: modifying the diversity need for public funds investment; allowing for use of demand deposit accounts; including an intergovernmental pool option; and making changes in the allocation percentages by security type. This policy remains in accordance with State Statutes, prudent business practices, and primary goals of the original policy.
As PRWC operations grow, the need for a more extensive policy may be necessary and the PRWC Investment Policy may be revised accordingly.
This proposed policy will apply to all surplus funds of the PRWC or otherwise under management control of the PRWC to the extent that application of this policy does not conflict with the requirements of any Cooperative bond resolution. In the event of a conflict, the bond resolution shall govern.
RECOMMENDATION
Approve Resolution 2025-33 to amend Resolution 2023-08 and approve a revised PRWC Investment Policy.
FISCAL IMPACT
No fiscal impact.
CONTACT INFORMATION
Laura Guy-Rice
Julie Santamaria