Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
West Linn updates investment policy as city’s reserves near LGIP cap
Summary
Council adopted an updated investment policy and hired Government Portfolio Advisors to help invest city funds outside the Oregon Local Government Investment Pool as reserves approach the statutory cap; staff plans initial investments in U.S. Treasury and agency securities.
West Linn City Council on March 17 adopted an updated investment policy and confirmed the city’s engagement with Government Portfolio Advisors (GPA) to begin investing some funds outside the Oregon Local Government Investment Pool (LGIP).
Lauren Bridal, finance staff, said the city had not updated its policy since about 2008 and that reserves have grown—partly because of higher expenditures and cash held for prior bond issuances—bringing the city close to the LGIP cap. "We have finally, for the first time ever, as a city, come close to meeting that cap," Bridal said. She said the revised policy tracks the Oregon Short Term Fund Board policy and GPA gave the draft a favorable review.
Deana Woodring and Whitney Mayer of GPA spoke to council about investment options and risk controls. Staff said the first step after policy adoption will be to invest roughly $10 million in U.S. Treasury and agency securities to secure higher yields while remaining conservative; the policy will be reviewed annually.
Council voted to adopt the updated investment policy unanimously. Staff said GPA will provide periodic reporting to council on performance and that the arrangement is intended to preserve principal while improving returns relative to leaving large balances solely in the LGIP.
