CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass the ordinance approving revisions to the City's Investment and Cash Management Policy (requires six positive votes)
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Finance Director
BOARD/COMMISSION REVIEW:
The Financial Advisory Board (FAB) reviewed the Investment and Cash Management Policy and approved the recommended changes on April 29, 2024.
BACKGROUND:
The City's Investment and Cash Management Policy ("the policy") was established to comply with State requirements regarding the investment of public funds and defines permissible investment activities under the City's home rule authority. The primary objectives of investment activities are safety, liquidity, and total return. The policy also describes cash management and operational processes.
All City funds are managed according to the provisions of this policy, except for the police and fire pension funds and other financial assets bound by separate governance documents held by various fiscal agents and trustees which are administered according to the contractual and statutory requirements of the respective funds. Except for cash in certain restricted and special funds, the City consolidates cash balances from all funds to maximize investment returns. Investment income is allocated to the various funds based on their respective participation and according to generally accepted accounting principles.
The policy calls for periodic review by FAB, and any revisions recommended shall be approved by the City Council. The policy was last revised on February 21, 2023.
DISCUSSION:
On November 21, 2023, the City Council awarded RFP 23-159, Fixed Income Money Management Services, to Mesirow Financial Investment Management, Inc., and PFM Asset Management LLC.
During the evaluation process, the selection team, which included members of FAB, noted that Mesirow and PFM offered investment strategies that complemen...
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