TO: Mayor Bien-Willner and Town Council Members
FROM: Jill Keimach, Town Manager
Douglas Allen, CPA
DATE: September 12, 2019
DEPARTMENT: Finance
Staff Contact Douglas Allen
End
AGENDA TITLE:
Title
Discussion of Amendment to the Town's Investment Policy
Body
SUMMARY STATEMENT:
Requested Action
For Council to consider increasing the maximum invested in LGIP from $7,500,000 to $10,500,000 (or higher) to enhance diversification and asset allocation in the Town's investments.
Future Investment Policy Update(s)
A comprehensive Investment policy update is being drafted with investment experts and is planned to be brought for Council's considerations later this year and will include further recommended changes with LGIP.
The Town's Long-Standing Investment Policy Objectives (paraphrased):
Compliance - by only invest as allowed under law;
Security - that preserves and protects public funds;
Liquidity - to meet cash flow needs; while maintaining
Diversification - that mitigates risks; and then
Yield - obtaining a market value rate of return.
The Town's current cash and investments managed by agent / institution is listed below for the year ended June 30, 2019 (unaudited).
Amount
Agent / Institution
%
$ 23,576,964
PFM
47%
18,656,526
WF & WFMM
38%
7,450,248
LGIP
15%
$ 49,683,738
FREQUENTLY ASKED QUESTIONS:
What is LGIP & Who can participate in LGIP?
LGIP stands for Local Government Investment Pools. The Pools were established in the Arizona Constitution under A.R.S. ?35-326 and the activity and performance of the pools are reviewed monthly by the State Board of Investment in accordance with A.R.S. ?35-311.
Local Governments may also deposit money with the Treasurer for investment. These funds are invested in the Local Government Investment Pools. These deposits are voluntary but provide many benefits to local governments. The Treasurer's office pools LGIP investments with other funds to provid...
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