Treasury seeks two investment managers as councilors press for consolidation and higher returns

Council members pressed the city’s treasury staff about investment management, the number of bank accounts and a projected fall in investment income.

Why it matters: the city’s interest and investment income affects general‑fund resources and the ability to fund services. Councilors questioned whether the city is getting best‑market returns and whether deposits could be used to support community reinvestment goals.

Treasury Treasurer Natalie Banks and Finance Director Paul Barrett told the committee that investments have been handled in recent years by experienced retirees working part‑time and that the department is proposing two full‑time investment managers to build an in‑house investment team with backup and succession planning. Barrett said he views the current part‑time arrangement as a risk and backed the investment‑manager hires.

Councilman Mike Polensik noted a projection the department circulated showing interest and investment income down by roughly $6 million for the coming year and asked for an accounting of where city cash is held and how funds are invested. Barrett said the city maintains accounts primarily with three large banks (KeyBank, PNC and Huntington) but that the administration is reviewing bank‑account consolidation opportunities; he also said many of the city’s funds are invested in very short‑term, money‑market equivalents and that there is scope to pursue higher returns through a managed portfolio.

On community reinvestment: council members urged finance to consider whether deposit policies and contracting could be used to advance neighborhood lending and access (Community Reinvestment Act concerns) and suggested the city needs clear policy and partnership strategy with local banks. Staff said outreach to banks and a review of deposit policies is underway but that leadership changes and staff turnover have delayed a full programmatic push.

Ending: the administration said it will pursue bank outreach, consider an RFP for investment advisory services if appropriate, and proceed with an internal investment team build‑out; staff will also provide council with a more detailed breakdown of bank accounts and a schedule of actions to consolidate accounts and evaluate investment strategy.