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Council adopts investment policy; OKs $15M advisory agreement with Meter Public Funds (4–1)
Summary
Council adopted a new investment policy (5–0) requiring quarterly reporting and then approved an agreement with Meter Public Funds to manage a $15 million portfolio (4–1), opening a U.S. Bank custodial account and approving signers; some council members asked staff to explore local custodial options.
The Highland City Council on Sept. 2 adopted a formal investment policy and authorized a $15 million advisory agreement with Meter Public Funds to manage a portion of the city’s portfolio.
Finance Director David Mortensen presented the drafted investment policy, which follows the Utah Money Management Act and the “prudent person” standard; it prioritizes safety first, liquidity second and yield third. Council adopted the policy 5–0 and added a stipulation that the council receive periodic reporting on investment performance; staff said it would incorporate the change of two internal titles (replacing the term “investment officer” with “city treasurer”) and deliver quarterly reports to the council.
Separately, council considered a proposed agreement with Meter Public Funds to manage a $15 million portfolio consistent with that policy. The agreement designates U.S. Bank as the custodial/safekeeping bank (a preference of Meter) and names three authorized signers for the custody account: City Treasurer Candace Linford, Finance Director David Mortensen and City Administrator Aaron Wells. Mortensen described the total annual fee as 0.10% of portfolio balance: Meter would take 0.0925% (about $13,875 on $15 million) and U.S. Bank would receive 0.0075% (about $11.25 on $15 million) as custodian fees.
Council approved the Meter agreement 4–1. Supporters said Meter’s proposal offered diversification and professional management; dissenting councilmembers expressed concern about selecting U.S. Bank as the custodian when other financial institutions with a local presence operate in Highland and asked staff to explore local banking custody options for future arrangements. Council members also discussed timing relative to expected Federal Reserve actions and the desire to lock in yields if possible.
The Meter agreement will proceed subject to execution of the custody account and the administrative steps required; staff said they would review local custodial alternatives over the coming months and report back if a viable, cost‑competitive local option existed.
