City Council Meeting Date: April 21, 2026
To: Mayor and Members of Council
From: Ben Martig, City Administrator
Brenda Angelstad, Finance Director
Title
Consider Resolution Establishing an Ad Hoc City Investment Policy and Cash Management Advisory Working Group.
Body
Action Requested:
Approve a resolution approving establishing an Ad Hoc City Investment Policy and Cash Management Working Group.
*Please note, this group was proposed in the April 7th agenda item as a “committee”. After consultation with the city attorney, staff proposes using the term “working group” instead to better align with the scope, goals, and makeup of the group as well as in consideration of ordinance language related to use of the term “committee” in the context of Council membership (none on this working group).
Summary Report:
At the April 7, 2026 City Council meeting, the Council discussed establishing a temporary Ad Hoc City Investment and Cash Management Advisory Working Group to be established to review the current City Council City Investment Policy and Fund Balance Policy and related practices and provide recommendations for consideration by the City Council. This Working Group’s scope will not be related to budget, capital improvement planning, capital projects or other financial policies.
There was positive feedback from the City Council. Therefore, this was added for consideration under the consent agenda. Mayoral appointments to the working group are included in a separate item on this meeting’s consent agenda.
Problem Statement / Purpose for Consideration
The City of Northfield is entrusted with managing public funds in a manner that ensures safety, liquidity, and appropriate return while maintaining transparency and accountability to the community. As financial markets, regulatory frameworks, and public finance best practices continue to evolve, there is an opportunity to review the City’s existing investment and cash management policies and practices to ensure they remain current, effective, and aligned with the City’s financial goals.
Specifically, the City seeks to enhance its approach to investment earnings within prudent risk parameters, strengthen overall cash management practices, and ensure policies clearly reflect the City’s risk tolerance and liquidity needs. Additionally, a thoughtful review of these practices may support improved financial positioning, including maintaining or enhancing the City’s creditworthiness and bond rating, while reinforcing strong stewardship of public resources.
Through this effort, the City aims to balance risk aversion with responsible yield optimization, improve clarity between policy direction and administrative practice, and ensure long-term financial sustainability consistent with the City’s commitment to sound fiscal management.
Working Draft Resolution
Attached is a resolution (attachment #1) that outlines the scope of review, duties of the working group, and more. The processes and procedures align with appropriate separation of duties of staff, consultants and council members to facilitate a coordinated and collaborative process. Specific details of the working group, as noted in the resolution are as follows:
1. Establishment and Purpose:
The City Council hereby establishes an Ad Hoc City Investment Policy and Cash Management Advisory Working Group (the “Working Group”). The purpose of the Working Group shall be to serve in an advisory capacity to the City Council by:
a. Reviewing the City’s current Investment Policy and Fund Balance Policy;
b. Reviewing current City investment practices and cash management approaches as presented by staff;
c. Considering alignment with industry best practices, statutory requirements, and risk tolerance; and
d. Providing recommendations to the City Council regarding potential amendments to policy and/or related considerations for administrative practice.
2. Advisory Role:
The Working Group shall be advisory only and shall have no administrative authority. The Working Group may recommend policy amendments to the City Council. The Working Group may provide input or observations related to administrative practices for City staff consideration. All final decisions regarding policy adoption or amendment shall remain with the City Council.
3. Membership:
The Working Group shall consist of members appointed by the Mayor and confirmed by the City Council (in accordance with City Charter and City Code), and may include:
a. Citizen representatives with relevant experience or interest in finance, investments, or public administration; and
b. The Mayor shall designate a Chair, who may be a citizen member.
4. Staff Support and Resources:
The City Administrator shall establish meeting agendas in consultation with the Working Group Chair. The Finance Director shall serve as lead staff liaison and presenter. Additional City staff may participate as determined by the Finance Director. External advisors, including the City’s investment advisor or consultant, may be invited to provide information and analysis as needed.
5. Meetings:
The Working Group shall meet as necessary to complete its work, with an anticipated duration of approximately two (2) to four (4) meetings, unless otherwise determined by the Working Group.
6. Duration and Termination:
The Working Group is intended to be temporary (ad hoc) and shall terminate upon the earlier of:
a. Completion of its review and delivery of recommendations to the City Council; or
b. A date determined by the City Council.
7. Reporting:
The Working Group shall provide a summary of its findings and any recommendations to the City Council for consideration at a regular or special meeting.
City Plans & Policies Relevance:
City Council City Investment Policy and Fund Balance Policy as indicated in the scope of the working group.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
ü April 7, 2026 City Council Discussion
ü April 21, 2026 City Council Approval of Resolution