Sweetwater Authority approves up to $2 million investment with Neighborhood National Bank

The Sweetwater Authority Finance and Administration Committee on March 3, 2025, approved a resolution authorizing investment of up to $2,000,000 in certificates of deposit placed through a program that spreads deposits across banks to maintain federal insurance.

Rich Stevenson, identified in the meeting as director of finance, told the committee the program places funds in CDs and that federal insurance coverage applies in $250,000 increments; staff said the CD program spreads deposits across multiple banks to preserve federal insurance even for larger aggregate amounts. Stevenson said the recommended CDs offer rates modestly below some recently purchased Treasury bills but provide community reinvestment benefits by routing funds to a local community development financial institution, Neighborhood National Bank.

Director Martinez said he knows people affiliated with the bank and could have a conflict; he told the committee he would abstain while staff provides board members a list of the bank’s board members. Director Martinez recorded an abstention on the final roll call; Directors Morrison and Yamani voted in favor and the motion carried 2–0 with one abstention.

Staff listed other local entities that use the program, including the City of National City, the City of Chula Vista, Southwestern Community College and the Chula Vista Chamber of Commerce. The committee’s action authorized staff to invest up to $2,000,000 in the bank’s CD program; staff said invested funds are federally insured in $250,000 increments and that the program uses multiple CDs to achieve that insurance coverage.

The motion adopted staff’s recommendation and the resolution authorizing the investment. The committee did not direct further changes to the authority’s investment policy in this meeting.