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Brentwood staff to invest $1.5 million of available cash, keep $2.5–3 million on hand
Summary
City finance staff told the Ways and Means Committee they plan to invest $1,500,000 of about $5,000,000 in available cash — including a recent $1.1 million FEMA reimbursement — while maintaining roughly $2.5–$3.0 million in reserves for operating needs.
Michelle, a city finance staff member, told the Brentwood Ways and Means Committee on April 2 that the city currently has about $5,000,000 in its cash account and she recommended reinvesting $1,500,000 of those funds. "We have just around 5,000,000 in our cash account," Michelle said, adding that the recommendation includes $1,100,000 recently received as a FEMA CEMA reimbursement.
The memo Michelle said she will send to staff would direct placing the funds into the city's existing laddered investment strategy. Brad, who presented the monthly earnings earlier in the meeting, said the city earned $141,532 in the first three months of 2026 across the 2017–2019 Debt Service Reserve Fund accounts and the General Fund, and that interest earnings since July 2018 total a little over $4,300,000.
Michelle said the proposed placement is intended to be cash-flow neutral for near-term obligations: "we can sort of handle taking those funds out, still pay for the fire truck that we know is coming, and still just do normal business, and still keep right around $2,500,000 to $3,000,000 on hand." Committee members asked whether board approval was required; Michelle and others clarified staff have authority to execute the investment but would document the committee discussion in a memo.
The committee did not take a separate vote to approve the investment at the meeting; Michelle said she would notify the investment manager to begin looking for appropriate laddered instruments and would follow up with the committee.
