City finance committee hears GPA briefing on portfolio, urges policy update

Diane Woodring, a portfolio manager with GPA Investments, told the Santa Fe Finance Committee on Feb. 9 that the city's short‑term positioning and recent securities purchases left the portfolio well placed if interest rates follow the expected downward drift.

GPA, which began managing city funds in May 2025, was hired to help invest a $25,000,000 bond proceeds portfolio and to build a dedicated $75,000,000 general‑fund investment program, Woodring said. She said GPA's assets under management total about $35,000,000,000 and that the firm works primarily with local governments in New Mexico and elsewhere.

"These are your dollars. These are your decisions," Woodring said, urging the committee to consider longer maturities alongside liquidity to reduce reinvestment risk. She reported the firm had locked in rates around 3.77% for certain purchases and that, as of December, the portfolio had unrealized gains of roughly $102,000. Woodring recommended revising the city's investment policy (last updated in 2017) and presented a four‑step framework for a sustainable program: onboarding, policy review, design/strategy and reporting/compliance.

Committee members asked for more detail about which funds make up the liquidity totals and whether restricted or special revenue accounts (for example, lodgers or tourism-related funds) are included in the core liquidity figure. Woodring said GPA would work with finance staff to break out cash‑flow needs and identify funds that could be invested beyond money‑market instruments.

GPA and committee members discussed liquidity ratios: Woodring noted the city's current presentation shows roughly 20% invested and 80% held as liquidity, while many comparable cities use a roughly 50/50 split between liquidity and core investments. Councilors asked staff to provide a breakout of which accounts comprise "Santa Fe liquidity" so the committee can decide if more funds can be prudently converted to longer maturities.

The committee asked GPA to return with a redlined update to the investment policy, sample portfolios aligned to differing risk/return objectives, and monthly reporting templates. Staff committed to getting updated presentation materials to the committee in advance of the next meeting.

What happens next: staff will coordinate with GPA to present a proposed investment policy update for committee review and provide a detailed fund breakout to inform any reallocation.