Title
Approval of City Investment Policy Update Recommendation.
Recommended Action
Committee Recommendation:
No referred to a committee.
City Manager Recommendation:
Move to approve the draft City Investment Policy update recommendation and forward to the full City Council for consideration.
Report
Issue:
Whether to approve the draft City Investment Policy Update Recommendation and forward to the full City Council for consideration.
Staff Contact:
Mike Githens, Finance Director, 360-753-8465
Presenter(s):
Mike Githens, Finance Director
Mitch Henke, Senior Advisor, GPA - Government Portfolio Advisors
Background and Analysis:
It is a best practice to periodically review and update the City’s Investment Policy to safeguard public funds, maintain liquidity for operational needs, maximize returns, and stay aligned with evolving state laws. Regular policy reviews ensure investment strategies remain current, enhance transparency, and support prudent decision-making.
This year, proposed updates include incorporating Environmental, Social, and Governance (ESG) principles to guide investments in alignment with the City’s broader community objectives. Additionally, the policy proposes increasing the total portfolio weighted average maturity from 2.0 to 2.5 years. This adjustment will help the City’s Core Investments strategy remain aligned with benchmarks during periods of lower balances. These updates reinforce the City’s commitment to a disciplined investment approach focused on safety, liquidity, and return.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
One of the goals of the City’s budget process is to ensure that City services are provided equitably to our residents and business communities, as well as the greater Olympia community. This agenda item is not expected to further impact known disparities in our community.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it is related to City finances and fiscal governance.
Financial Impact:
There is no financial impact related to this item.
Options:
Move to approve the draft City Investment Policy update recommendation and forward to the full City Council for consideration.
2. Approve the recommended policy with amendments.
3. Reschedule the agenda item for future meeting.
Attachments:
Draft Investment Policy Update