The council heard an annual investment-policy review and a proposed update to the city’s financial policy at the Oct. 20 work session.

Government Portfolio Advisors (GPA) reported that Albany’s portfolio complied with the city’s diversification and maturity constraints as of the June 30 fiscal-year close. GPA said the portfolio’s market value rose from about $164 million to about $181 million over the year and that book yields were improving as intermediate-term yields increased relative to short-term liquidity instruments.

Staff presented a revised financial policy in a new city template and said changes were largely plain-language and technical, including language responding to an FTA audit about handling advanced grant receipts, and updated capitalization guidance following new Governmental Accounting Standards Board (GASB) guidance. Staff proposed a target fund-balance goal modeled on Government Finance Officers Association (GFOA) recommendations, with an initial target of 25% of operating expenditures and an intention to move toward a GFOA-recommended range in subsequent years.

Staff said the investment policy will be readopted on the council consent agenda at the regular Wednesday meeting and that the revised financial policy will be brought back as a resolution for council action.