Title
Resolution to Adopt Revised Investment Policy
Memorandum
The City's investment policy was last revised in 2021. The proposed revisions are recommended to better align the policy with the City's current cash management and capital project needs.
The recommended revisions are intended to allow the City to better manage bond proceeds for various capital projects and to respond to the increasing variability of cash flows throughout the year by leveraging the Michigan CLASS investment pool, as well as similar investment pools, where appropriate and permitted.
The proposed revisions also update and standardize references to credit rating requirements throughout the policy by utilizing the term Nationally Recognized Statistical Rating Organization (NRSRO). This change modernizes the policy, aligns it with current industry practice, and provides flexibility to recognize ratings issued by any qualifying NRSRO rather than relying on references to specific rating agencies.
The proposed updates preserve the City's primary investment objectives of safety, liquidity, and yield, while providing additional operational flexibility for funds with changing project expenditure timelines. The revised policy continues to comply with Michigan law and the established public treasury standards of safety, liquidity, yield, and legality.
Approval of the revised policy is recommended.
Staff
Prepared by: Michael J. Pettigrew, City Treasurer
Reviewed by: Marti Praschan, Financial Services Area Administrator and CFO
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City reasurer has reviewed the current investment policy with the City's Investment Advisor;
Whereas, The City Treasurer has identified recommended changes to the policy in accordance with public investment statutory requirements and the City's operational cash management needs;
Whereas, The recommended revisions will allow the City to better manage bond proceeds for various capital projects an...
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