By Martha Stoffel
O’FALLON – The Finance & Administration Committee received an update on the proposals the investment committee reviewed for the investment of reserves totaling $19,800,000.
The newly-formed investment committee, comprised of the Treasurer, City Administrator, Finance Director, Mayor and Chair of the Finance Committee, recently met and selected six different financial institutions to invest with from the eleven proposals received.
The investments are in varying amounts, the maximum being $3 million, and laddered with length of investment period from 6-36 months. The new investments are with Bank of O’Fallon, Regions, PMA Financial, PFM, Reliance Bank and Raymond James.
The city will continue to keep a certain amount of reserves in Illinois Funds, with a rate of 2.412 percent. The amount in Illinois Funds is $4.7 million which is addition to the $19.8 million invested with the six financial institutions.
The Finance Director also provided the committee with preliminary budget information. The city’s management team begins the internal budget review process this week, and departmental budgets will be presented in late February and early March at the various committee meetings, with the council approving the FY20 budget in April.