City treasurer’s quarterly investment report: Romulus portfolio at about $85.8M, 1‑year return ~5.87%

At the council’s Oct. 27 meeting the treasurer introduced a quarterly investment presentation from the city’s external manager (PFM). Representative Grama Lepley presented highlights for the quarter ending June 30, 2025, and answered questions from council.

Lepley said the city’s combined bank deposits and investment securities totaled about $85.8 million as of June 30, 2025, with much of the portfolio concentrated in short-duration holdings. She noted market context (inflation near 3%, unemployment around 4.3%, and recent Federal Reserve rate moves) and said the municipal portfolio outperformed the 0–5 year treasury benchmark by roughly 12 basis points in the quarter, producing a quarter return of about 1.4% and a one-year return near 5.87% (total-dollar returns of roughly $500,000 for the quarter and about $2 million over the past year were shown on the presentation slides).

Lepley also explained why the city does not invest in riskier instruments such as equities or cryptocurrencies: Michigan law (Public Act 20) and the city’s investment policy limit permissible investments to highly rated, liquid instruments (treasuries, certain federal agency securities, local government investment pools and highly rated commercial paper). Council members asked clarifying questions about the investment policy, and Lepley reiterated the portfolio’s safety-first approach (safety, liquidity, return).

The presentation closed with staff confirming that more detailed study-session presentations can be scheduled if council desires.