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Ross council authorizes Time Value Investments as town broker for selected funds
Summary
Council authorized the town manager to transact investments through Time Value Investments on a brokerage basis, adopting a non-discretionary structure and requiring staff approval for purchases. Contracting will prioritize safety and liquidity while seeking higher yields than LAIF for longer-dated funds.
The Ross Town Council voted unanimously to authorize the town manager to transact selected town funds with Time Value Investments (TVI) in a brokerage relationship intended to diversify returns beyond the local agency investment fund (LAIF) while preserving safety and liquidity.
Krista Johnson, the town manager, introduced the recommendation from the finance subcommittee to retain Aaron Bunk of Time Value Investments. Bunk (present via Zoom) told council that TVI works primarily with public entities in the Western U.S. and focuses on fixed-income instruments such as U.S. government bonds and FDIC-insured certificates of deposit. He described two compensation models: a transactional brokerage model (commission built into the purchase yield) and an advisory contract (example fee discussed around 10 basis points). Bunk said brokerage compensation on government bonds is typically 5'10 basis points and that commissions on CDs are driven by the banks offering them; "the yield that we would show to the town would already include our compensation," he said.
Council members pressed staff on constraints and safeguards. Krista Johnson clarified the relationship will be nondiscretionary: "We would not make any decision or invest or reinvest any maturing funds without express consent from Krista, or any other staff that are authorized." Staff also noted statutory limits, including a 30% cap on CDs for public agencies. Johnson and finance subcommittee members discussed using core, longer-term cash balances (for example, a town emergency fund described as historically untouched) while keeping shorter-term or deposits tied to developers readily available.
A motion to authorize the town manager to retain TVI as an investment broker passed on a 5-0 roll call. Council directed staff to work with TVI and present periodic updates to the finance subcommittee and quarterly investment reports to the full council.
