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Council authorizes transfer to Peoples Bank and expands intrafi investment option
Summary
Council approved moving a portion of the city's funds into an IntraFi product through Peoples Bank, citing a guaranteed 4.4% return in the proposal; the council also authorized signers on the account.
The Valley Center City Council authorized an enterprise account with Peoples Bank and approved using IntraFi placement through Peoples Bank to expand the city's short-term investment options, after staff described competitive rates and a fixed 4.4% offer from Peoples Bank.
City finance staff summarized the competitive process of soliciting bids for short-term investment rates and said that Peoples Bank offered a 4.4% fixed rate via an IntraFi product the bank would manage. Staff explained the product is daily liquid, insured via IntraFi, and that the bank offered to adjust the rate upward if general market rates rise above the guaranteed rate. Staff said the arrangement could allow the city to move several million dollars into the product while keeping operating balances at lower levels.
Council members asked whether the rate would be reset if market rates changed and clarified that some existing term investments (90-day or 6-month deposits) remained at Fidelity; staff said most accounts would move to Peoples Bank but short-term locked deposits could remain at other banks. The council approved Resolution 778-25 expanding investment options with an enterprise account at Peoples Bank and approved the authorized signers (Clint Miller, Mayor Jett, Brent Clark and, as amended, Ben Anderson) for Peoples Bank Intrafi accounts.
