Government Portfolio Advisors outlines investment strategy for Oregon cities and counties

During the McMinnville City Council Regular Meeting on August 26, 2025, significant discussions centered around the city’s investment strategy and the potential partnership with Government Portfolio Advisors (GPA). The meeting highlighted the need for an updated investment policy to better manage the city’s assets, which currently total approximately $60 million.

GPA, a woman-owned firm established in 2014, presented its services to the council, emphasizing its fiduciary responsibility to local governments. The firm manages around $28 billion in assets across various Oregon municipalities and aims to align investment strategies with the specific cash flow needs of its clients. The presentation underscored the importance of a balanced portfolio that optimizes returns while ensuring safety and liquidity.

A key point raised was the outdated nature of McMinnville's current investment policy, which dates back to 1989. GPA representatives expressed enthusiasm about the opportunity to modernize this policy, aligning it with national standards and state guidelines. They proposed a strategy that would allow the city to diversify its investments beyond the current limitations, which primarily restrict funds to short-term securities.

Council members raised questions regarding the financial implications of partnering with GPA, particularly whether the investment strategy would yield increased revenues or reduced losses. GPA assured the council that their approach is designed to enhance earnings through a more balanced portfolio, which could effectively pay for the advisory services provided.

Concerns were also voiced about the exclusivity of the proposed partnership with GPA, with some councilors questioning whether other firms had been considered. The city plans to leverage existing contracts from other municipalities to streamline the procurement process, which is a common practice in local government.

The council discussed the anticipated value of the investment, estimating around $40 million, with initial fees set at $15,000 for the first year, transitioning to a basis point fee structure thereafter. This financial model aims to ensure that the costs of the advisory services are offset by improved investment performance.

In conclusion, the meeting underscored the city council's commitment to enhancing its financial management practices through strategic partnerships and updated policies. As McMinnville prepares to address its growing infrastructure needs, the proposed collaboration with GPA could play a crucial role in optimizing the city’s investment portfolio and ensuring fiscal responsibility. The council will continue to evaluate this partnership and its implications for the city's financial future.