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Commission approves rewritten investment policy, adds collateralization and education requirements
Summary
The fiscal committee approved a wholesale rewrite of the city's investment policy, creating an ad hoc investment committee, shortening maturity limits, emphasizing collateralization of deposits and adding continuing‑education expectations for staff.
The Grand Rapids Fiscal Committee voted June 10 to approve a rewritten statement of investment policy and procedures, a document staff said was overdue for a full rewrite after incremental changes since 2015.
Levi Bolt, the city’s investment officer, told commissioners the new policy creates an ad‑hoc investment committee to support cash‑flow decisions, reduces weighted average maturity from 7 to 5 years to limit interest‑rate and reinvestment risk, and emphasizes collateralization of large deposits to protect public funds beyond standard FDIC coverage.
Bolt said the changes respond to limitations in the city’s new investment accounting software and to evolving market conditions. The policy also includes a continuing education expectation so multiple staff hold relevant certifications and can provide continuity in portfolio management.
Commissioners asked for a brief explanation of collateralization; Bolt and a broker explained it provides additional protection if a bank defaults and noted recent bank failures motivated the change.
The committee approved seeking certification from professional bodies (Association of Public Treasurers/APT USNC and the Government Investment Officers Association). Members said the policy strengthens the city’s safety‑liquidity‑yield framework and provides more explicit risk limits. The motion carried by voice vote.
