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Torrington treasurer reports $1.3M in earnings after placing $40M in state short-term investment fund
Summary
City Treasurer Dan told the council the city moved $30 million, later adding $10 million, into a short-term state investment fund and has averaged about $436,000 per month in interest earnings, totaling a little over $1.3 million since the funds were placed; the portfolio yields roughly 4.5% and remains liquid, acc
City Treasurer Dan reported to the Torrington City Council that the city placed municipal funds into a short-term investment fund with the state of Connecticut and has seen meaningful earnings without sacrificing liquidity. Dan said the city initially invested $30 million, later added $10 million, and the account now totals $40 million.
"We've averaged approximately $436,000 a month in interest earnings, a little over $1,300,000," Dan said, adding that the fund has averaged about 4.5 percent. He said the approach provides returns comparable to certificates of deposit without tying up the funds for long terms, and that the city retains liquidity for cash management needs.
Dan said the city has found the approach to be a useful tool for earning interest while keeping funds available. Councilors did not block the investment update and no vote was required; the treasurer provided the report as part of regular financial updates.
