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Investment advisor: $1.5 million redeployed; city expects about $360,000 more from CEMA
Summary
City investment presenter Brad told the Ways and Means Committee the city redeployed about $1.5 million into its portfolio and has earned roughly $201,159 so far in 2026; staff expect about $360,000 more from CEMA reimbursements tied to 2022 and 2025 storm events and will decide how to allocate those funds after bids and OMCI details are available.
Brad, a presenter for the committee, told members the city’s investment portfolio has yielded renewed monthly interest after recent redeployments. “You will start to see that, those interest earnings per month increase based on the new money that's been added to it,” he said, reporting $2,700,000 in total earnings prior to 2024, $728,405 earned in 2024, $708,131 the prior year and $201,159 earned year-to-date through the first four months of 2026 (about $50,000 per month).
Committee members asked where the additional $1.5 million originated. Michelle said the funds were not newly created revenue but were recovered reimbursements: the city made accelerated purchases in FY25 pending FEMA and CEMA funds and was repaid, and staff recommended reinvesting those recovered dollars. Eric clarified FEMA had covered the majority of recent claims but said CEMA reimbursements remain outstanding.
Eric estimated the city expects roughly $350,000 from CEMA for the 2022 flood and about $12,000 for a 2025 tornado, or approximately $360,000 total, but he did not provide a firm timeline. He noted CEMA often finalizes payments in batches and said, “they're trying to really...close out 2022, so I expect to get that back before we get that last bit from the 2025 tornado,” but added he did not have a specific schedule.
The group discussed whether to invest incoming reimbursements to earn additional interest or to apply them directly to capital projects such as stormwater bid packages. Eric explained the expected CEMA reimbursement would be split among multiple funds because the original expenditures were paid from different funds: about $3,500 to fund 10 (general fund/police and fire), approximately $290,000 to capital fund 40, and roughly $62,000 to the stormwater fund (figures described as approximate by staff). Committee members agreed to defer final allocation decisions until after bid results and additional OMCI funding details are available.
Next steps: staff will monitor the CEMA timeline, the committee will review bid results and OMCI funding before deciding allocation, and the committee will revisit the investment versus direct-spend question at a future meeting.
