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Lynn Haven asks finance review committee to study city investment policy
Summary
The commission unanimously directed the Financial Review Committee to evaluate a formal investment/reinvestment policy that would allow certain reserves to be invested, with staff noting state limits and the need for legal review.
The Lynn Haven City Commission voted March 10 to ask its Financial Review Committee to research and draft a possible investment or reinvestment policy so the city can earn returns on certain reserve balances.
Commissioner Peebles introduced the request and said the step is intended to create parameters that would allow the city to place excess reserves into permitted, low‑risk vehicles rather than leaving cash idle. “If we have reserve funds we can’t touch today without a policy, the committee should tell us what’s plausible and safe,” Peebles said.
Finance staff said state law restricts the kinds of investments municipal governments may hold and noted the state’s pooled‑fund option as a likely starting point. “Because of our cash balance, we could very well invest in the pooled fund with Florida if that’s what you wanted to do,” finance staff member Kiki Roman said, while adding that any new policy would need legal review and commission approval.
Public commenters and several commissioners urged caution and suggested the committee look at neighboring Bay County’s investment policy as a model. The commission approved the referral to the finance review committee by voice vote.
Next steps: the finance review committee will consider policy language, permissible instruments, risk limits and reporting requirements and return recommendations to the commission for possible ordinance or resolution action.
