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HWMA board authorizes moving some reserve funds into California CLASS Prime Fund
Summary
The Humboldt Waste Management Authority board approved a resolution letting staff place certain reserve funds in the California Cooperative Liquid Asset Securities System (CLASS) to diversify investments while keeping the operating reserve in LAIF.
The Humboldt Waste Management Authority board on Oct. not specified adopted Resolution 20-26-06 authorizing staff to invest certain non-operating reserve funds in the California Cooperative Liquid Asset Securities System (CLASS) while keeping the operating reserve in the Local Agency Investment Fund (LAIF).
Staff said the move is intended to diversify the authority's investments and to earn higher returns than the money-market accounts that some reserve funds were held in. Staff identified four smaller reserves that could be moved into CLASS as segregated subaccounts: the capital improvement fund, long-term funding set aside from countywide fees, an employee reserve and a rate-stabilization reserve.
Staff member Stach summarized the authority's recent history with investment authorizations, saying the board first adopted an investment resolution in February 2009 and that the authority had not historically invested its assets until a 2024 resolution broadened allowable investments beyond LAIF. "CLASS offers similar return rates as LAIF, with comparable risk profiles while providing the authority a bit more flexibility than LAIF currently offers," Stach said.
Director Schwartz provided current yield figures cited by staff. "The daily yield for CLASS is 4.1467%. The 30-day yield is 4.2249%." Schwartz added that LAIF's 30-day yield at the time was 4.212%, and that both CLASS and LAIF yields were substantially higher than the money-market accounts the authority had been using.
The board voted on a motion to adopt Resolution 20-26-06 after a brief public-comment period. The motion was seconded and approved by voice vote.
Votes at a glance - Consent calendar: approved by voice vote; no items were pulled for separate consideration (motion and second recorded on the record; individual roll-call tallies not specified in the transcript). - Resolution 20-26-06 (authorize investment in California CLASS Prime Fund): motion to adopt recorded and seconded; approved by voice vote. Individual recorded tallies were not specified in the meeting transcript.
The board directed staff to continue keeping the operating reserve in LAIF and to work with CLASS to establish segregated subaccounts for the other reserves identified. Staff recommended adoption and provided the yield comparisons and account-structure details as the justification for the change.
The board moved on to the next agenda item after the vote.
