Cypress Staff to Stay in Charge of Brokers
After haggling over whether the City Council should play an active role in selecting stockbrokers, the panel this week approved a new investment policy for city funds.
Council members Mary Ann Jones and Tom Carroll lost in their effort to give the council more direct control over selection of brokers.
City Atty. John E. Cavanaugh pointed out that council members, who are not bonded by the city, might have financial liability if they assumed veto power over brokers. Cavanaugh said that city staff members who handle the city’s investments are bonded.
Carroll and Jones, however, argued that the council should be more involved. “To me it makes so much sense to know who our brokers are,” Carroll said.
But Mayor Walter K. Bowman said the city staff already reports to the council the names of investment brokers being used by the city. Bowman noted that Jones was seeking a list of brokers. “What’s this list going to contain that we don’t have now?” Bowman asked.
In response, Jones said, “It will give the City Council some accountability.”
On the final 4-1 vote for the overall policy, Jones was the lone dissenter.
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