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HSS finance committee backs keeping trust assets in City treasury pool; board approves draft policy subject to legal review
Summary
After a yearlong review and a presentation from Makita Investment Group, the finance committee recommended and the Health Service System board approved continuing to place trust fund assets in the City treasury pool with quarterly performance updates, annual Treasurer briefings and review every three years; approval was unanimous and the policy remains subject to legal review.
The Health Service System finance committee on Tuesday recommended that the board adopt a draft investment policy statement and continue to utilize the City treasury pool for trust fund assets. The recommendation is based on a Makita Investment Group analysis that weighed statutory constraints, liquidity needs and potential returns.
Commissioner Sass summarized the committee findings and read the consultants’ recommendation: continue to use the treasury pool, receive quarterly performance updates, request an annual update from the Treasurer and Tax Collector staff, and review portfolio appropriateness at least every three years. Larry Witt of Makita told the board that the projected additional return from alternative options was modest — roughly "$5,000 per year" on average on the sample portfolio he presented — and that the treasury pool’s liquidity and statutory compliance favor keeping the funds pooled for now.
Committee members noted the trust fund’s stabilization and contingency reserves and the requirement to preserve liquidity for plan obligations. The committee also recommended legal review of the final investment policy language before formal adoption.
The board accepted the finance committee’s recommendation and approved the draft investment policy statement as presented, with the understanding that it will be returned for final language after counsel’s review. The vote was recorded as unanimous.
