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Waverly Utilities board approves opening account with Iowa Public Agency Investment Trust
Summary
The Waverly Utilities Board approved Resolution 14-25 to open an account with the Iowa Public Agency Investment Trust’s diversified fund to seek higher, liquid returns on excess cash.
Waverly Utilities approved Resolution 14-25 to open an account with the Iowa Public Agency Investment Trust (IPAT), a move staff said would give the utility a more liquid, higher-yielding place to hold excess cash.
Kelly, a staff member, told the Waverly Utilities Board the trust operates under state authority and that the utility sought to open an account in IPAT’s diversified fund, which provides daily liquidity and was rated A by S&P. “The diversified fund provides daily liquidity and is rated bridal A, by S and P,” Kelly said. Kelly also cited recent performance data: “from the 03/31/2025 ape hypate, it showed that their average rate was 4.13,” and contrasted that with the utility’s current return from First National Bank of “2.4.”
The resolution was presented as an expansion of investment options for the utility. Kelly said the proposal would let staff move excess cash into the fund as cash flow allowed; the board could set a limit if it preferred. She told the board the utility currently holds about $7,000,000 at First National Bank that could be available to move into IPAT and that the trust is used by other local public entities: “Yes. County uses it. School district uses it.”
Board members asked several clarifying questions about scope and safeguards, including whether funds for the communications utility should be held separately; Kelly said separate accounts are required for audit purposes. The board also discussed insurance and custodial questions; Kelly said IPAT is treated like other institutions the utility deals with and that staff had checked compliance with the utility’s investment policy.
After discussion, a motion to approve Resolution 14-25 carried on the voice/roll call vote. The meeting recorded affirmative votes from Broomkarts, Kettlesen, Buckingham, Hansen and Kalin, and the chair announced that “Resolution fourteen-twenty 5 is approved.”
The board did not specify a dollar limit in the approved resolution; Kelly told members staff planned to “monitor cash flow, see what payables are, and bring money back, kinda test it out.” The action updates a prior board authorization from 1988 that staff said had not been implemented at that time.
For now, staff will proceed to open the IPAT account and report back on any limits or guidelines the board wants to set for transfers of operating cash.
