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Commission approves first reading to revise ordinance on investment and disposition of idle funds
Summary
The commission approved the first reading of ordinance G-25-O5 to add language letting city administration, in accordance with annual budgets, credit earnings from investments pro rata and allow up to a 7.5% administrative fee to the general fund; staff said roughly $31 million is in local bank accounts and $24 million in other investments.
The Coffeyville City Commission on Tuesday approved the first reading of an ordinance amending the city's rules for investing and allocating earnings on idle funds.
Martin Cummings, director of finance, described the amendment as an addition to existing language that would allow city administration to credit earnings from investments "pro rata to the funds of the city from which the investments were made, or to the general fund as deemed necessary," and permit up to a 7.5% administrative fee to the general fund where appropriate.
Cummings said staff consulted the city attorney and auditor, and the change is permissive under state statute. "It's entirely at the discretion of the city how we choose to disposition those funds, provided that we're simply just transparent about it," he said.
In questions from commissioners, Cummings said roughly $31,000,000 is held in the city's local bank accounts and about $24,000,000 is held in investment accounts at varying durations. He said locally held bank funds are available immediately and some investment holdings are less liquid but may be reallocated to improve returns.
City manager Marty and finance staff emphasized these dollars are budgeted and assigned for specific purposes, not an unencumbered "war chest." "These funds are assigned funds. Some of them are enterprise accounts that can only be used for that," Marty said, noting legal and bond-covenant constraints and reserve policies.
Vice Mayor Banister moved to approve the first reading; Mayor Maples seconded. The motion passed with all present voting aye.
Staff said they will bring more detailed investment summaries and an allocation strategy to the commission in future briefings.
