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Memphis council approves revised investment policy and establishes CD ladder, emergency fund and trial account
Summary
The council unanimously approved an amended Financial and Investment Policy and a package of investment moves: a $50,000 Michigan CLASS trial account, a $170,000 IntraFi ICS emergency fund, and a $630,000 CD ladder split into three CDs with specified renewal terms.
Councilmember Dunbar moved and Councilmember Sopha supported a resolution amending the City of Memphis Financial and Investment Policy and approving a set of investment actions, which the council adopted unanimously. The package directs $50,000 to a Michigan CLASS account for a six-month trial, $170,000 to an IntraFi ICS account earmarked as an emergency fund, and $630,000 into a CDARS CD ladder divided into three $210,000 CDs: a 13-week, a 26-week and a 52-week CD, each to be renewed for one year.
The council’s motion also directs that, after an existing Comerica CD matures in roughly three months, an additional $40,000 be placed into the IntraFi ICS account and a new CD purchased to complete the ladder’s third rung. The changes were advanced as a recommendation from the Financial Committee and were approved without recorded dissent.
Why it matters: the reallocations alter where the city’s liquid and short-term reserves are held and create a designated emergency account intended to improve access to funds. The structured CD ladder is intended to stagger maturities while keeping funds insured through IntraFi services and CDARS arrangements.
Details recorded in the council motion: the Michigan CLASS placement is explicitly a six-month trial; the ICS emergency fund amount is $170,000; and the CD ladder totals $630,000 split into three equal rungs ($210,000 each) with stated renewal terms. The motion was moved by Councilmember Dunbar and supported by Councilmember Sopha; the council approved the resolution by unanimous vote.
The council took the action as part of routine business and did not attach additional conditions or amendments to the investment package during the meeting. The meeting continued to other agenda items after the vote.
