July 29, 2013
07/30/13 Last week members of the Plymouth Common Council voted unanimously to look at a more aggressive investment strategy after Jeff Messer from H. J. Umbaugh explained the services the company would provide to the city.
In a PowerPoint presentation Messer explained that he would work with the city to identify the core balances to be invested. They would create a proposed investment strategy based on the cash flow needs and current market conditions focusing on safety, liquidity and return. Umbaugh will competitively bid the qualified investments utilizing financial institutions or brokers per Indiana public fund code and the city’s investment policy. The company would provide monthly statements and as the city’s investments mature Umbaugh would look for reinvestment opportunities.
City Council approved two ordinances last week, one that will allow the city to bid to all local institutions and those Indiana institutions that accept public fund investments. The second ordinance allows the city to invest at longer terms. Instead of the typical two years they can invest up to five years allowing for a better return on their investment.
Councilman Mike Delp asked about the fee for services provided and Messer said the standard fee is 10 basis points for every $1 million invested. It averages out to $1,000 for every $1 million invested.
Clerk Treasurer Toni Hutchings said, “We are going to move slowly on this. We will start with utility money and move from there.”