City of Milwaukee - File #: 110616

• File #: 110616
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 9/1/2011
• In control: FINANCE & PERSONNEL COMMITTEE
• Final action: 11/4/2011
• Title: Substitute resolution relating to short-term cash management by the City.
• Sponsors: ALD. MURPHY
• Indexes: PLANNING

Date	Ver.	Action By	Action	Result	Tally
11/16/2011	1	MAYOR	SIGNED
11/4/2011	1	COMMON COUNCIL	ADOPTED	Pass	15:0
11/4/2011	1		ADOPTED		15:0
11/2/2011	0	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Individual appearing: Dennis Yaccarino, Budget and Management Division	Pass	4:1
11/1/2011	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
11/1/2011	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
9/1/2011	0	COMMON COUNCIL	ASSIGNED TO

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...