Oswego Village Committee of the Whole Meeting – January 6, 2026

The Committee of the Whole meeting was called to order at 6:00 PM on January 6, 2026, at Oswego Village Hall. Trustees present: Cooper, Koenig, McCarthy Lang, Torres. Trustees absent: Hughes, Novi. The board approved electronic participation for Trustees Hughes and Novi for the meeting. The public forum had no speakers. The meeting covered two main agenda items: an investment overview and a review of the fund balance and cash management policy.

Public Comments & Testimony

• No members of the public spoke.

Discussion Items

• Investment Overview (F.1): Andrea, the village finance director, introduced Michelle Benz from PFM Asset Management. Benz provided a presentation on the village's investment history, including a laddered strategy established in 2022 that was later moved to cash due to upcoming capital projects. As of late December 2025, the village had about $49.4 million invested with PFM, with $21 million from the general fund, $20 million from recently issued bonds for the Lake Michigan connection, $4 million in capital fund reserves, and $4 million in water/sewer fund reserves. Cumulative investment earnings from 2022 to November 2025 exceeded $3.5 million; new accounts in 2025 earned over $400,000. Benz discussed state statute restrictions on permissible investments, noting that commercial paper and corporate notes have specific maturity and credit quality limits. She recommended updating the village’s 2013 investment policy to reflect statutory changes, including shortening maximum maturity from 10 to 5 years and requiring only government money market funds. Trustee McCarthy Lang asked about social/environmental investment restrictions; Benz and Andrea clarified that such language is suggested but not mandated, and the village currently does not include it. Trustee Torres asked about the breakdown of invested amounts and liquidity. Benz explained that the current inverted yield curve makes liquid holdings appropriate for funds needed soon.
• Fund Balance and Cash Management Policy Review (F.2): Andrea presented a review of the general fund balance, defining categories (nonspendable, restricted, unrestricted). As of December 31, 2024, the general fund had a total fund balance of about $30 million, with $28 million unrestricted. The current policy targets an assigned fund balance of 30% of estimated next-year operating expenditures and a cash reserve of 25%. The village's 2025 estimated operating expenditures were $26 million, making the target unrestricted fund balance $7.8 million and the cash reserve $6.5 million. Actual unrestricted fund balance was $28 million (107% of expenditures). Staff projected that after planned transfers (including $15.5 million over 2026–2027 for the public works facility expansion), the remaining unrestricted fund balance would be $10.8 million (39% of expenditures), still above the 30% target. Andrea recommended keeping the 30% policy but making minor language updates to reflect the shift to a calendar fiscal year. Trustees discussed the impact on bond ratings (high fund balance is a positive), the revenue stability from grocery taxes, and the importance of a cushion for emergencies. The board did not take formal action but appeared supportive of the proposed minor policy revisions.

Key Outcomes

• The board approved electronic participation for Trustees Hughes and Novi (unanimous votes).
• No formal votes were taken on the investment policy or fund balance policy. Staff indicated they would bring the revised investment policy for adoption at the next board meeting. The fund balance policy revisions will also be prepared for future board consideration.
• The board discussed and generally concurred with staff’s recommendation to maintain the 30% fund balance target and update the policy for the fiscal year change.