Finance committee hears quarterly investment update; committee notes $4 million callable and LGIP movement
Summary
Staff reported a slow quarter with two 1-year certificates rolled at ~3.87–3.92% and a $4 million callable US Bank holding at about 5%; LGIP yields moved in April–June and staff will monitor callable windows.
County finance staff presented a quarterly investment update showing modest movement in yields and a $4 million callable US Bank instrument that staff are monitoring for monthly call dates. The committee heard that two one-year certificates with First Fed matured May 28 and were rolled at rates in the high 3 percent range, and that Local Government Investment Pool (LGIP) rates were near 4.3–4.9 percent in April through June.
Staff reported that a $4 million safekeeping/callable option with US Bank was not called on the first call date; the rate on that instrument was reported at about 5 percent and staff said the next call dates recur monthly. The investment officer said they were building a ladder of maturities to capture higher rates where practical.
The county’s consultant (3 Plus 1) flagged a June 30 spike in balances for further review and suggested the committee consider short-horizon investments (3–6–9 months) as opportunities to lock in attractive yields. The consultant also cautioned that changes in the Federal Reserve leadership do not cause overnight rate changes and that rate policy remains a committee decision by the Fed.
Ending: Staff will keep monitoring callable dates, LGIP yield movements and portfolio composition and will return with fuller analysis at a later CashFest/cash-management meeting.
