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North Miami CRA adopts updated investment policy, raises local-pool limit to 75%
Summary
The North Miami CRA approved an updated investment policy that raises the cap on local government investment pools to 75%, aligns the policy with Florida statute updates from 2023 and GFOA/APT best practices, and requires registered advisers for outsourced management.
The North Miami Community Redevelopment Agency on April 22 adopted an updated investment policy that increases the allowable limit for local government investment pools to 75% and incorporates changes required by recent state law.
The policy, prepared by consultant Dani (Danessa) Metz of PFMAM and based on the city of North Miami’s investment policy, was presented to the CRA board and approved by motion 5-0. Metz said the policy uses a three-pronged framework — Florida Statutes, the Association of Public Treasurers of the U.S. and Canada (APT-USNC) model guidance, and Government Finance Officers Association (GFOA) best practices — and reflects edits for the CRA’s short-term, project-driven cash management needs.
Metz told the board the key edit for the CRA was raising the allocation to local government investment pools, citing daily liquidity and competitive yields. She said the local pool under consideration, Florida PALM, was highly rated by S&P and was yielding about 4.41% at the time of the presentation, while noting short-term yields move with Federal Reserve policy. Metz also highlighted written changes required by the 2023 Florida legislative update (HB 3), which mandates that investment decisions consider pecuniary factors only and therefore precludes use of ESG or other nonpecuniary criteria.
Board members asked technical questions about the short-term focus of the investments, the types of instruments envisioned (Metz described pooled local government funds with daily liquidity and net-of-fees yields), and the registration requirement for outside advisers under the Investment Advisers Act of 1940. The CRA opened and closed the public hearing without speakers before voting.
A motion to approve the policy was made by Board Member Burns, seconded by Board Member Estimate Irvin, and carried 5-0. The board record and presentation indicate the approved policy: (1) increases the local government investment pool cap to 75% for the CRA’s short-term funds, (2) incorporates statutory updates under Florida Statutes section 218.415 and HB 3 (2023) limiting consideration to pecuniary factors, and (3) requires any hired investment adviser to be retained under a written agreement, invest according to the CRA policy and risk tolerances, and be registered under the Investment Advisers Act of 1940.
The board did not direct additional follow-up at the meeting beyond adopting the policy; staff and the consultant will implement the changes described in the adopted document.
The vote was recorded as 5-0 in favor.
