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City of Tukwila <br />Tom McLeod, Mayor <br />Finance Department — Aaron BeMiller, Director <br />INFORMATIONAL MEMORANDUM <br />TO: Finance & Governance Committee <br />CC: Mayor McLeod <br />FROM: Aaron BeMiller, Finance Director <br />By: Tony Cullerton, Deputy Finance Director <br />DATE: June 23, 2025 <br />SUBJECT: City Investment & Debt Policies <br />ISSUE <br />Finance is recommending the repeal and replacement of the City's current Investment and Debt <br />Policies. The updated policies reflect best practices by better aligning with industry standards, <br />expanding on roles and responsibilities, and supporting the City's broader financial strategy, <br />including capital planning and passive revenue development. <br />BACKGROUND <br />As part of the Council's Revenue Proviso, the Finance Department is conducting a <br />comprehensive review of the City's financial policies to strengthen fiscal sustainability and <br />strategic planning. The current Investment and Debt Policies were last significantly updated in <br />2021 and 2023, respectively. Since then, best practices and the City's financial priorities have <br />evolved. <br />The revised policies were prepared to align with the standards set by the Washington Public <br />Treasurers Association (WPTA) and have been submitted for consideration under their Certificate <br />of Excellence program. The revisions aim to support: <br />• A more integrated approach to the Capital Improvement Program (CIP) <br />• Transparent delineation of roles, responsibilities, and reporting <br />• The use of professional advisory services for complex transactions <br />• Enhanced diversification, risk management, and performance benchmarking <br />Investment Policy Updates: <br />The new Investment Policy offers a substantial update in both structure and content. Key <br />improvements include: <br />• Enhanced definitions of safety, liquidity, and return objectives, with detailed risk mitigation <br />strategies <br />• Expanded list of permitted investments, including supranational bonds and investment - <br />grade corporate notes <br />• Clearer delineation of delegated authority, reporting responsibilities, and training <br />requirements <br />