Title
A Resolution Approving the City's Investment Policy
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
The proposed Investment Policy provides updates to adhere to changes in Colorado State statute that governs investment of public funds, reflects changes the City has implemented, and updates language for clarity in the policy. The attached policy would replace the previously approved policy. Per City Code, City Council approves the City's Investment Policy.
Background:
City funds that are not needed in the short term for cash-flow purposes are eligible to be invested. These funds, from various accounts, are pooled for investment purposes. Funds that are held in certain restricted or special accounts are not included in the investment pool. The investment income derived from the pooled investment is allocated back to each account based upon the proportion of the respective average balances relative to the total pooled balance.
The purpose of the Investment Policy is to establish the investment scope, objectives, eligible investments and transactions, diversification requirements, and risk tolerance for the investment of the funds of the City of Colorado Springs.
The City Finance Department contracts with a professional Investment Advisor to invest and manage the funds on behalf of the City. The Investment Advisor is selected through an open, competitive procurement process. The most recent procurement process was conducted at the end of 2023, for the 2024 contract. During this procurement, the bidders were asked to provide proposals for managing both the operating fund and the reserve fund. Historically, the City has secured separate contracts for the investment services of the operating and reserve funds. During the latest procurement process, the top-rated firm was the same for both the operating and reserve funds. As a result, the City contracted with that firm, Insight Investment, and has consolidated the two ...
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