The Board of Aldermen on Aug. 7 approved a first-reading agreement with Central Trust Company to provide investment-management services for a portion of the city’s funds (Bill 25-63). City Treasurer Carrie Bell described the arrangement as an additional option to the city’s existing mix of operating accounts, CDs and the MOSEPS government pool, and said it would add a professionally managed portfolio with an average maturity shorter than five years.

Bell told the board the management fee would be 0.08% (8 basis points) and that net returns were expected to remain competitive after fees. She also said the agreement has no minimum investment requirement and may be canceled with 30 days' notice. The city reviewed at least one other proposal; a competing firm quoted a different fee structure and a minimum annual fee of $12,500.

Aldermen asked whether the proposal followed the city’s investment policy; Treasurer Bell confirmed it did. Several aldermen praised the lack of a required minimum and the option to diversify the city's investments. The board voted to approve the agreement on the first reading and instructed staff to move forward with implementation in keeping with the city’s investment policy.