CHEYENNE, Wyo. — The City of Cheyenne is considering updating its investment policy, allowing city staff to invest funds in equities like stocks. Despite state law allowing municipalities to invest in equities since 2025, Cheyenne has only invested in low-risk securities like bonds and government investment pools.
The Cheyenne Finance Committee reviewed the resolution during its Tuesday meeting, approving it and sending it to the Cheyenne City Council for approval next week. If it is approved in full next week, City Treasurer Robin Lockman said, using small portions of the city’s core funds to invest would help yield higher investment returns for the city and beat inflation.
The city’s operating money and other short-term cash would not be used for trading, according to the resolution. Instead, a $47,300,000 pool made up from portions of long-term core funds like the General Fund reserve and the Solid Waste Landfill Post-Closure Fund would be used. The city can only pull up to 20% of what each eligible fund has stored. That equals a maximum initial investment of around $9,500,000 — only around 3.6% of the city’s total $260,000,000 investment portfolio.
“Our goal is not to take unnecessary risks with taxpayer dollars, particularly funds needed for daily operations,” Lockman said.
The resolution also establishes a clear rulebook for how the city would invest. Importantly, the resolution notes, the city cannot pick and choose single stocks for its portfolio. It would instead be limited to investing in index mutual funds or exchange-traded funds. Other riskier investments like leveraged funds would also be prohibited.
Comparing total liquid financial assets to the annual operating budget would help city staff set a cap on how much the city can invest every year, and state law has only permitted municipalities to invest in more volatile equities since 2025. Despite Cheyenne participating in safer investments for years, Lockman said that the new laws allow municipalities to really put idling funds to work and take advantage of the slow, but reliable, appreciation of stock value.
“Stocks are generally considered longer-term investments because their values fluctuate significantly from year to year. Historically, the U.S. stock market has averaged approximately 10% annually over the long term, including periods of economic downturns and market volatility,” Lockman said. “While past performance doesn’t guarantee future results, This demonstrates why stocks can be an appropriate investment for long funds that are not needed for many years.”
It wouldn’t be the city managing the funds day-to-day. If the Cheyenne City Council approves the resolution, the city would put out a request for proposal, petitioning firms from around the country to pitch their asset management capabilities. The city would eventually choose one to handle the funds, while the city’s investment committee — comprised of the mayor, treasurer, City Council members and finance professionals — provides oversight.
Having received unanimous support from the Finance Committee, the resolution awaits final approval from the full City Council next week.
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Source: capcity.news
