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Lovington commission adopts investment policy to put $25M of idle cash to work
Summary
The commission approved a new investment policy establishing liquidity, cash‑match and core portfolios and authorized the city manager to form an investment advisory committee to oversee implementation of the policy.
The Lovington City Commission voted to adopt a formal investment policy aimed at earning higher returns on the city’s idle cash while prioritizing safety and liquidity.
City manager summarized the draft policy and told commissioners the city now holds “over $25,000,000 of investment cash,” arguing that a modest increase in yield could generate significant annual revenue for infrastructure or salaries. He said the policy divides funds into three portfolios — a liquidity portfolio for day‑to‑day needs, a cash‑match portfolio for short‑term liabilities and a core portfolio for longer‑term reserves — and recommended using instruments such as the New Mexico LGIP where appropriate. The commission approved the resolution and instructed staff to proceed with implementing the policy and forming an advisory committee to provide ongoing oversight.
Commissioners discussed risk, diversification and committee composition during the discussion; the policy emphasizes maturities of less than five years and internal controls to prevent conflicts of interest.
