CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Waive the first reading and pass the ordinance approving revisions to the City's Investment and Cash Management Policy (requires six positive votes)
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
The Financial Advisory Board (FAB) reviewed the Investment and Cash Management Policy and approved the recommended changes on January 30, 2023.
BACKGROUND:
The City's Investment and Cash Management Policy ("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 funds of the City are administered in accordance with 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 in accordance with generally accepted accounting principles.
The Policy calls for periodic review by FAB, and any revisions recommended shall be approved by City Council. The Policy was last revised in 2018.
DISCUSSION:
The Financial Advisory Board completed a thorough review of the City's Investment and Cash Management Policy in late 2022 and early 2023. FAB has recommended several minor revisions to the Policy intended to address internal cash management procedures that have evolved and do not impact any section of the Policy that directs inv...
Click here for full text