Ann Arbor OKs New Investment Policy
At its Dec. 5, 2011 meeting, the Ann Arbor city council authorized a new investment policy. The item had been on the council’s agenda at its Nov. 21 meeting, but was postponed at the request of Marcia Higgins (Ward 4), who wanted to have the council’s budget committee review the policy first.
Highlights of the policy changes include the extension on maturity timelines for several different instruments: U.S. Treasury Obligations (from seven to 15 years); Federal Agency Securities (from seven to 10 years); Federal Instrumentality Securities (from seven to 10 years), Certificates of Deposit (from three to five years), and Obligations of the State of Michigan (three to 10 years).
Balanced against those extensions were some changes to portfolio restrictions that prevent the city from having too many longer-term maturity instruments: no more than 25% of the portfolio may be invested in securities with maturities greater than seven years, and no more than 12.5% of the portfolio may be invested in securities with maturities more than 11 years.
This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link] [Full Story]