Lubbock council backs investment-policy revisions, staff moves to lower commercial-paper exposure

Lubbock City Council voted to approve a consent-agenda resolution that revises the city's investment policy and strategy, part of a routine update recommended by the audit and investment committee. The item was considered as part of the consent agenda and passed unanimously.

City CFO Joe Jimenez told council the audit and investment committee reviews the annual consolidated financial report and offers investment recommendations. He said the city's investment earnings were about $17,100,000 in fiscal year 2025, down from roughly $21,100,000 the prior year, and explained that some cash in the portfolio represents unspent bond proceeds that are invested until used. Jimenez said staff and the committee recommended returning the allowable commercial-paper limit to 10% of the portfolio, noting the city's longer-term average in commercial paper was about 6.4%.

"So it made sense to bring it back to the 10% that we had prior," Jimenez said in response to council questions about risk and portfolio composition. Council members asked how investment earnings are reported and whether the committee's oversight reaches all city funds; Jimenez said committee members include certified public accountants and investment professionals and that the committee meets quarterly.

The council approved the consent agenda, including the investment-policy resolution, without separate roll-call debate. Officials said the change is intended to reduce risk exposure while preserving flexibility to invest bond proceeds and departmental reserves.

What happens next: the updated investment policy will be implemented by city finance staff and the committee will continue quarterly reviews; no additional council action on this resolution was recorded in the meeting minutes.