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Macomb finance staff proposes adding IPRIME and similar pools to city investment policy to boost yields
Summary
City Treasurer Andrea Henderson and Finance Director Melissa Worley told the committee they researched pooled-investment options (including the Illinois Fund, IMET and IPRIME) and favor IPRIME for portfolio management, daily valuation and local-bank inclusion; staff suggested initially investing $3'$5 million of general-fund reserves and will return with a formal policy amendment for council approval.
On Nov. 10 Macomb's Committee of the Whole discussed proposed amendments to the city's financial investment policy to permit use of outside pooled investment providers.
Treasurer Andrea Henderson summarized staff research into multiple providers'the Illinois Fund, the Illinois Institutional Investors Trust, the Illinois Metropolitan Investment Fund (IMET) and Illinois Public Reserve Investment Management Trust (IPRIME)'and said IPRIME best aligned with the city's needs because it provides professional portfolio management, daily valuation, an assigned investment specialist and practices that include local banks. "They do offer a professional portfolio management, flexible structure, daily valuation, and online access," Henderson said. She emphasized that choosing a pool other than the Illinois Fund would require revising the city's authorized-investment list in policy and returning to council for approval.
Finance Director Melissa Worley described operational benefits including same-day withdrawals, an online portal consolidating statements for easier monthly journal entries, the ability to create multiple accounts (starting with the general fund, then the self-funded health-insurance reserve), and periodic stress testing by the provider to keep risk low.
In response to questions, staff estimated that $3 million to $5 million of general-fund reserves could be placed initially, with funds swept as needed to meet cash-flow demands; a low-end yield estimate cited in discussion was roughly $200,000, and staff said fee structures were comparable across providers and applied before calculating net return. Staff said they will complete a cash-flow analysis and return with a full policy amendment for council consideration; the item will not be actionable at the next meeting.
