City finance staff told the committee that legislative changes during the 2025 Kansas session require updates to the city’s investment and cash management policy if Overland Park is to maintain expanded investment powers.

Staff said two principal changes to state law prompted the update: certificates of deposit must be collateralized through a pooled collateral method administered by the state treasurer with valuation capped at 102% (down from a prior 105% requirement), and public funds offered as investments must be offered to all financial institutions within the city’s physical boundaries with investment biddings open at least two business days. If an in‑city institution meets the minimum statutory rate and offers the highest rate, the city is required to place the investment with that institution.

Finance staff said the change will increase the number of banks that must be offered CD business and that staff expects city yields to be lower than under the prior practice because the city previously invested with government agencies and negotiated terms. “I would anticipate that we will have less yield than we could,” a staff presenter said, adding the policy revision is intended to encourage community reinvestment.

Staff emphasized the city’s investment practice of laddering maturities out to four years to match cash‑flow needs (for example, debt service due September 1) and described the new language to allow staff to certify compliance with KSA 12‑16,177(b). The committee moved to recommend governing body approval of the updated policy; the formal vote is listed in the Votes at a glance summary.