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Commission adopts investment policy to put idle cash to work
Summary
The commission adopted a city investment policy to manage increasing idle cash (staff cited over $25 million), proposing a three‑tier portfolio approach and an investment committee to oversee safety, liquidity and yield choices including use of the New Mexico LGIP.
City manager Mr. Miranda briefed the commission on a new investment policy designed to improve returns on the city’s idle cash while emphasizing safety and liquidity.
The manager told commissioners the city now has “over $25 million of invested cash,” and suggested that getting even an extra 1 percentage point of return could generate roughly $250,000 a year. He described three portfolios—liquidity (day‑to‑day cash), a cash‑matched portfolio for near‑term liabilities, and a core portfolio for operating reserves and bond proceeds—and recommended diversification and short maturities (under five years).
The policy highlights the New Mexico local government investment pool (LGIP) as a suitable core instrument; staff noted LGIP yields north of about 3.5–4 percent recently and a very small management fee. The manager proposed formation of an investment committee to provide ongoing oversight, to report quarterly to the commission, and to authorize the finance director to implement investment decisions within the policy limits.
After discussion the commission approved the policy and authorized staff to move forward with implementation and committee formation. The adopted policy will be reflected in a future resolution and implemented by the finance director and city manager.
