Pewaukee board approves moving Lehman Park fund balance into state LGIP; changes to boat slip rental timing also approved

The Pewaukee Parks and Recreation Board voted to move forward with investing a portion of the Lehman Park fund balance in the Wisconsin Local Government Investment Pool (LGIP) and approved operational changes to boat slip renewals that shift to a single annual payment due in the fall.

Board members discussed liquidity, risk and projected yields during the finance discussion. Parks staff described LGIP as a short-term, highly liquid vehicle tied to short-term Treasury yields and managed by the state: "It's through the state of Wisconsin ... about as safe as you can get," a staff member said. Staff estimated the fund balance would be roughly $290,000 after a recent playground transfer and proposed placing about $200,000 into LGIP while retaining operating cash in checking to cover recurring bills. "I think very reasonably we can put $200,000 in the LGIP portion," a staff speaker said.

Board members asked about risk and access to funds. A board member characterized the risk as "extremely low" and noted LGIP yields fluctuate with Treasury rates; staff noted yields seen earlier in the year were about 4.5 percent and that LGIP offered higher yields and low fees compared with typical money-market funds. The board directed staff to determine exact fund balance, short-term cash needs, and to proceed with LGIP allocations consistent with a conservative liquidity plan. The motion to approve the approach passed unanimously.

Separately, the board approved changing the boat slip renewal process so existing slip renters would pay the full year in one fall payment rather than a down payment in October followed by a balance in March. Staff said the change simplifies administration and provides renters five months’ notice before payment is due; the board recorded a second motion and unanimous approval.

Board financial reports for January through April were reviewed and approved in the meeting; staff reported revenue increases from gas sales and boat launches and noted capital charges related to a $33,001.50 playground expense had been posted to year-to-date totals. "We have 22 slip renters. All are back this year," a staff member said when reporting slips and revenues.

Staff and board members agreed to return with a clearer written cash-allocation plan showing the amount to remain in checking for operating needs, the specific LGIP allocation, and recommendations if the board later wants to pursue more aggressive longer-term options.