Public Building Commission and Chicago City Treasurer Announce New Innovative Investment Partnership

Goal is to Maximize Return on PBC Investments with CTO Advantage Program

Molly Sullivan, Public Building Commission, (312) 744-9277
Katie Hickey, Office of the City Treasurer, (312) 744-2432

The Board of Commissioners of the Public Building Commission (PBC) Chicago City Treasurer Kurt Summers and today announced an intergovernmental agreement (IGA) has been approved that will allow the Office of the City Treasurer to provide financial management services with a goal of boosting PBC’s return on investment for its bond portfolio. Through the Chicago Treasurer’s Office (CTO) Advantage Program, the Treasurer’s Office will manage the day-to-day operations of the PBC’s investment portfolio which will reduce costs and eliminate duplication while leveraging the office’s existing banking and trading relationships and investment expertise.

“We welcome this partnership with the Office of the City Treasurer because it will provide experienced and proven financial management for our investment portfolio and allow PBC to focus on its core mission of developing high-quality public facilities,” said Erin Lavin Cabonargi, Executive Director of the PBC. “We are grateful that another governmental body that has the expertise to serve the public fund will assist us with our investment strategies.”

“Building on the success of a similar partnership with the Chicago Park District, we are thrilled to implement the same practices and efficiencies for the PBC to provide an even more cost-effective approach to investment management,” Treasurer Summers said. “This new collaboration will allow the PBC to focus their assets and attention on their core mission while taking advantage of the Treasurer’s Office economy of scale to enhance services and ultimately save taxpayer dollars.”

Under the agreement, known as a shared services partnership, the Treasurer’s Office portfolio managers will oversee a portion of the PBC’s portfolio with the goal of a higher return on investments. The portfolio covered by the agreement consists of $38 million in bonds.

The Treasurer’s Office will collaborate with PBC and recommend an asset allocation strategy in accordance with applicable law, advise the PBC on cash flow needs and risk tolerance policy, prepare an investment plan to achieve PBC’s goals, advise the PBC on current market test and financial market conditions forecast and prepare performance reports of financial activity.

The Treasurer’s Office has been working in the same capacity under a shared services partnership with the Chicago Park District since 2013. Since implementation, the shared services partnership has annually saved the Park District over $250,000 in management fees and other costs. Treasurer Summers first proposed launching CTO Advantage to expand the shared services program during his first 90 days in office. The Treasurer continues to seek out opportunities with other sister agencies to build upon and replicate the proven success of these partnerships.

The Office of the City Treasurer adheres to a progressive and diversified public funds investment policy that contains highly rated corporate, agency, supranational and municipal securities. Minority, women and veteran-owned firms conduct about 60 percent of the Treasurer’s office investment brokerage activity in a given year.

About PBC:
The Public Building Commission of Chicago manages construction and renovation projects for the City of Chicago and its sister agencies. Mayor Rahm Emanuel serves as the PBC’s chairman. Erin Lavin Cabonargi serves as the Executive Director of the PBC.  Additional information about the PBC and its projects can be found at  You can also follow the Public Building Commission of Chicago on TwitterFacebook, Flickr and Pinterest.