City Council Meeting Date: April 7, 2026
To: Mayor and Members of Council
From: Ben Martig, City Administrator
Brenda Angelstad, Finance Director
Title
Discuss Establishing an Ad Hoc City Investment Policy and Cash Management Advisory Committee.
Body
Action Requested:
Discussion only.
If the Council expresses interest in pursuing the Ad Hoc City Investment and Cash Management Advisory Committee, a resolution (working draft attached for feedback) will be placed on the April 21, 2026 City Council agenda for approval.
Summary Report:
Mayor Zweifel is proposing a temporary Ad Hoc City Investment and Cash Management Advisory Committee to be established in a temporary role 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 Committee’s scope will not be related to budget, capital improvement planning, capital projects or other financial policies.
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 draft resolution that outlines the scope of review, duties of the committee, and more. The processes and procedures align with appropriate separation of duties of staff, consultants and board members to facilitate a coordinated and collaborative process. Specific details of the committee, as noted in the attached draft resolution (attachment #1) are as follows:
1. Establishment and Purpose:
The City Council hereby establishes an Ad Hoc City Investment Policy and Cash Management Advisory Committee (the “Committee”). The purpose of the Committee 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 Committee shall be advisory only and shall have no administrative authority. The Committee may recommend policy amendments to the City Council. The Committee 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 Committee 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 Committee 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 Committee 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 committee.
6. Duration and Termination:
The Committee 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 Committee 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 committee. The Mayor and City Administrator will provide some information on this topic. Council feedback of interest to consider this at a future meeting is welcomed. This is a discussion item only this evening.
Alternative Options:
The Council can choose not to proceed with creation of the committee or can provide direction to staff on changes to the proposed resolution.
Financial Impacts:
N/A
Tentative Timelines:
ü February 10, 2026 City Council Discussion (26-073)
• April 7, 2026 City Council Discussion
• April 21, 2026 City Council Approval of Resolution