Moraga audit committee reviews $16.3 million cash balance, eyes active investment strategy

The Town of Moraga Audit & Finance Committee met Dec. 2 and heard an informational report from Administrative Services Director Katie Bruner that the town held $16,300,000 in combined checking, money-market and state pooled funds as of Sept. 30, 2025, and that the town—s Section 115 pension trust had a $2,500,000 balance.

Bruner said the pooled account is the state Local Agency Investment Fund (referred to in the transcript as "LAFE") and that the town is not required to use that fund. "We are not required to use LAFE," she said, adding that staff plan to examine more active investment options to improve returns and will bring recommendations back to the committee.

Committee members questioned current yields and account management. One member observed money-market rates in the low-to-mid single digits and asked whether the checking and money-market funds could be optimized. Bruner replied that the town manages its cash flow between accounts to meet payroll and large construction payments, and that staff intend to put out an RFP for a financial advisor and update the town—s investment policy to allow for different strategies while maintaining appropriate safeguards.

A committee member recalled earlier steps to strengthen employee retirement options, noting that the town had engaged the Schuster firm and established the Section 115 trust to improve returns and employee plan options. That member said those steps have reduced fees and broadened options for employees.

Next steps: staff will return with specific recommendations, including the results of a planned search for financial-advisory services and proposed changes to the investment policy.

(Procedural note: the committee approved prior meeting minutes at this session; the minutes motion passed by voice vote 3-0. The transcript contains inconsistent dates for the minutes referenced — the agenda referenced 05/02/2025 while the motion-maker said May 7.)