2019/01/28 - Mayor's Column: New Investment Policy Update
“An Open Door to O’Fallon”
A Weekly Note from Mayor Herb Roach
Several weeks ago, I wrote an article about the significant change in how the City of O’Fallon invests its reserve funds. In the past, the investment of the reserves was primarily done by one individual who would select a financial institution and place the reserves with them under agreed upon conditions. That process has now changed.
A few months ago, we recommended a new investment method to the City Council. The City Council, after much discussion, voted to approve the new method. City investments are now reviewed by a five-member committee. With this new committee in place, we issued a Request for Proposals (RFP) for investment returns; a first in the history of the City of O’Fallon.
The idea behind this was threefold:
- Improve the rate of return on our investments.
- Create an open process.
- Ensure the safety of the City’s dollars.
I believe that this new process accomplished all three. We received proposals from eleven different firms and the investments will be discussed at an open public meeting. All the funds are invested in guaranteed deposits. And, the new investments will improve our rate of return by approximately 15%!
This was not accomplished without a lot of hard work by my fellow members of the investment committee. I would like to personally thank our City Treasurer David Hursey, Finance Committee Chairman Bob Kueker, Finance Director Sandy Evans, and City Administrator Walter Denton.
It is important for the City to keep healthy reserves. Not only does it ensure that we can continue to provide quality services through tough economic times, it also helps us be prepared in the event of an emergency.
On a different note, we recently went out for bids on our property, liability and workers compensation insurance coverage. I am glad to say that the bids came back good and we are going to see an annual savings of over $150,000!
As residents of O’Fallon, you should always be able to reach out to your elected officials and ask questions about what is happening in O’Fallon. Having open communications is important to me and something I care very deeply about. Thank you for reading, and please remember, my door is always open!