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Commission adopts investment policy to manage increasing idle cash
Summary
The commission advanced a first‑time city investment policy to move idle cash into defined liquidity and core portfolios; staff proposed use of the New Mexico LGIP and creation of an investment committee for oversight.
Commissioners discussed and approved a new city investment policy intended to put idle cash to work while preserving safety and liquidity. The presenter said the city now manages more than $25 million in idle cash across funds and that ‘‘1% of interest or extra interest per year is $250,000,’’ underlining the fiscal opportunity.
The proposed policy creates three portfolios — a liquidity portfolio for day‑to‑day operations, a cash‑match portfolio for short maturities and a core portfolio for operating reserves and bond proceeds — and emphasizes maturities under five years, diversification and quarterly reporting. Staff recommended the New Mexico Local Government Investment Pool (LGIP) as a core instrument for relatively higher, liquid returns.
The policy also proposes formation of an investment committee that would include the mayor (or designee), city manager and finance staff plus three additional members; the committee would meet quarterly and report to the commission. Commissioners approved advancing the policy and asked staff to draft the implementing procedures and committee membership requirements for a subsequent meeting.
The resolution to adopt the policy was placed on the agenda and voted; staff will implement committee formation and internal controls required by auditors.
