Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investment Policy topic
No spam. Unsubscribe anytime.
Consultants propose updating investment policy to allow commercial paper for liquidity; council staff to review
Summary
PFM Asset Management recommended updating the city’s 2015 investment policy to align with Missouri statute and to allow commercial paper (up to a 25% allocation, subject to Missouri maturity limits) for the city’s roughly $124.9 million portfolio; staff said the manager can execute policy changes but will bring a redlined memo forward.
Nick Kenny of PFM Asset Management briefed the Audit & Finance Committee on June 24 and proposed revisions to the city’s investment policy — the first update since 2015 — to bring the city into closer alignment with Missouri state statute.
Kenny said PFM manages a portfolio valued at about $124.9 million as of March 31 and argued that allowing commercial paper would expand short‑term liquidity and yield options. PFM recommended a conservative commercial‑paper allocation cap (PFM discussed a 25% example) and noted Missouri’s statutory maturity limits (the firm described Missouri’s 180‑day limit on commercial paper) would be respected.
"Safety is still the primary driver of the account. Liquidity is still the driver, and yield comes after that," Kenny said. He and a colleague walked committee members through how commercial paper differs from treasuries and federal agencies and described the state‑level eligibility screen plus PFM’s internal credit research.
Committee members asked whether the policy revision is a council action or a staff‑level change; staff pointed to the policy language that directs the finance director to review and recommend changes to the city manager for approval, but said they would present a redlined memorandum and a formal policy for committee and council consideration.
No vote was taken. Staff said they had worked with PFM on the redline and would bring recommended language back for formal adoption if the committee supports alignment with state statute.
