DATE: September 6, 2019
TO: Board of Mayor and Aldermen
Budget and Finance Committee
FROM: Eric Stuckey, City Administrator
Kristine Brock, Assistant City Administrator/CFO
Mike Lowe, Comptroller
SUBJECT:
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Consideration of Resolution 2019-99, A Resolution to Adopt a Revised Investment Policy for Non-Pension Related Assets. (9/12/19 Finance 3-0)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning an update to the Investment Policy for Non-Pension Related Assets. All changes are in accordance with TCA 6-56-106, which governs the investment of public funds by Tennessee municipalities.
Background
There are four (4) changes proposed to the Investment Policy for Non-Pension Related Assets:
1. Separate CD’s and other evidences of deposits to further monitor investments for compliance purposes.
2. Updating the paragraph relating to cash benchmarks in Section 11.
3. Cleaned up language related to money market mutual fund investments.
4. Added a qualifier to the use of commercial paper as an investment vehicle to establish a minimum rating of A1+ or its equivalent.
Financial Impact
None.
Options
Approve or disapprove the proposed policy update.
Recommendation
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Staff recommends approval of this update.