The Federal Communication Commission has ultimate authority in setting rates, only allowing cities a chance to postpone the increase. Committee members felt the review was unnecessary, but agreed that allowing the public to comment was still valuable. Investment consultants addressing the committee agreed that the city should consider longer-term investments to increase its yield on investments. With the city limited by state law to investing in certificates of deposit, government-backed securities and collateralized bank investments, the consultants reviewed the city s investment strategy the past two years. We believe we could enhance your return sixty to sixty-five basis points, Brad Hudgens, consultant for Morgan Stanley Dean Witter said.
Basis points make up interest percentage.
Most consultants who spoke espoused the prudence in hiring a money manager to handle the city s investments. Currently, city investing is handled by City Treasurer Jim Scott. Jim Scott, City Manager Kent Myers said, can only devote about 20 percent of his time to investing compared to his other responsibilities. A money manager could be full time and would charge about 30 basis points, Hudgens said. The consultants also agreed to form an investment committee with city staff and the city s auditors to form a new investment policy.