Number
110616
Version
SUBSTITUTE 1
Reference
Sponsor
Ald. Murphy
Title
Substitute resolution relating to short-term cash management by the City.
Analysis
This resolution establishes an 18-month pilot program to identify and segregate cash reserves not immediately needed for City operations, and invests these cash reserves in longer term investment vehicles consistent with restrictions on such investments set by state statute. These investments of cash reserves may be managed and directed through contracts with independent, professional cash managers.
The resolution also authorizes the Comptroller’s Office to issue Requests for Proposals to select investment agents, trustees or custodians to allow the City to continue the program beyond the initial 18-month pilot program.
Body
Whereas, Section 3-12 of the Code of Ordinances authorizes the Common Council to direct funds deposited with the City; and
Whereas, The adoption of Resolution File Number 070880 on January 15, 2008, authorizing the City to issue up to $150,000,000 in general obligation commercial paper promissory notes ("commercial paper”) makes it possible to invest a larger portion of cash reserves in longer-term investment vehicles by providing a cash liquidity “safety net” the City can draw upon for potential, temporary cash shortfalls; and
Whereas, Investing larger portions of cash reserves in longer-term investment vehicles is expected to increase earnings on what amounts to idle, or temporarily unneeded, cash to provide some funding relief during tight budget periods; and
Whereas, Some governmental authorities, including Milwaukee County, have increased cash reserves earnings by contracting with professional cash managers; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Office of the Comptroller shall establish an 18-month pilot program for the investment of City cash reserves identified as available for investment and the City Treasurer shall make available funds identified for this program; and, be it
Further Resolved, The Office of Comptroller is authorized to select vendors as investment agents, trustees or custodians to implement this program consistent with the investment restrictions set by s. 66.0603, Wis. Stats., and designation of authority under s. 34.01(1), Wis. Stats.; and, be it
Further Resolved, The City Treasurer shall provide access for the Office of the Comptroller to all necessary information, including Sympro, the Treasurer’s investment memo, and iNovah to better inform the Office of the Comptroller on cash reserve fluctuations; and, be it
Further Resolved, The Office of the Comptroller, in consultation with the City Treasurer, shall identify cash reserves to be included in this investment program balancing the City’s cash needs with the City’s capacity to meet short-term liquidity needs by issuing Commercial Paper or similar financing vehicles; and, be it
Further Resolved, The Office of the Comptroller shall design this program similar to the one established by Milwaukee County, in order to maximize cash investment returns to the City, consistent with investment restrictions set by s. 66.0603, Wis. Stats.; and, be it
Further Resolved, The Office of comptroller shall issue Requests for Proposals for investment agents trustees or custodians and to select investment agents, trustees, or custodians to allow the City to continue the program beyond the initial 18-month pilot program
Further Resolved, The Office of Comptroller shall report to the Finance and Personnel Committee the status and investment performance of this cash reserves investment program at the first regularly scheduled Committee meeting after the end of each fiscal quarter in 2012.
Requestor
Drafter
LRB #133665-2
Aaron Cadle
November 1, 2011