City and Borough of Juneau
Central Treasury Overview
The City and Borough of Juneau (CBJ), manages its cash and cash equivalents (investments) using a Central Treasury management approach. This requirement is in compliance with CBJ Charter section 9.13(d).
Except as otherwise provided by the assembly by ordinance, the assembly shall provide that all funds of the municipality from whatever source, including the education function, shall be deposited in a central treasury.
Management of Investments
The CBJ Assembly has adopted a code and policy regarding the management of Central Treasury Investments. The code and policy identifies the intent, judgment, authorized investments, investment terms, conditions, collateral, etc. The code and policy requires that -
The Finance Director and Treasurer exercise the judgment and care under the circumstances then prevailing which an institutional investor of ordinary prudence, discretion, and intelligence exercises in the management of investments under the investment objectives of these investment policies and the CBJ codes.
The Central Treasury investments are divided between four different portfolios. Each portfolio has different invest objectives. The portfolios include-
The Short, Short-Intermediate and Long Portfolios are managed internally. The External Portfolio is managed externally by the firm of Alaska Permanent Capital Management.
Earnings Allocations to City Functions
The CBJ Finance Department maintains an accounting by fund, function or project. Accounting includes the tracking cash and cash equivalents for each area. Interest is allocated to all self-funded cost centers (enterprise funds) and other areas where interest is required to be allocated (grants, bond proceeds, endowments, agency funds, etc). Earnings are determined based on each entity’s cash balance by portfolio on the rate of return for each month.
Additional information on the CBJ’s Central Treasury investment program can be found at the following links: