if they follow through, would this be the first direct investment of government funds into bitcoin?
Maybe the first publicly known if this happens but there is a chance that this might not be the first one. Government funds especially the ones in LGUs have cash reserves that are meant for investment and most of them invest on anything they want depending on their risk factor and as long as it is legal so I won't be surprised if their analysts and fund managers have bought cryptocurrencies as a chance for growing their fund. Also for me the mayor is already late in the action and I just hope their fund manager knows that, buying in now will just give them a little space between the ATH.
WHile an interesting thought experiment, unless this investment is meant for long term, they'll probably be surprised if the price is behaving erratically, just hope whatever preparation they do is sensible. Fund managers can make or break initiatives like this, hope they pick a good one, at least one familiar enough with BTC to make a coherent plan of investment.