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Community Power board authorizes investing reserves in state Local Agency Investment Fund
Summary
The board approved a resolution authorizing San Diego Community Power to invest up to $75 million in the California Local Agency Investment Fund (LAIF), citing higher yields than the agency's money-market account and alignment with reserve-building goals.
The San Diego Community Power Board of Directors on Sept. 25 voted to authorize placing agency funds in the California Local Agency Investment Fund (LAIF), a state-managed pooled investment vehicle.
Eric Washington, chief financial officer and treasurer for San Diego Community Power, presented the item and told directors that LAIF offers higher yields than traditional money‑market accounts and is allowed under the agency's investment policy. Washington said LAIF is authorized under California Government Code section 16429 and noted program limits proposed for the agency: a total deposit cap of $75 million with no more than 15 transactions per month. He told the board Community Power currently holds about $90 million in its money-market account and would not move all funds immediately but would work to reach the authorized cap over time.
Board members asked about likely yields and operational limits. Washington said LAIF's reported average monthly yields have been in the range of roughly 4.25% at that time and that the cap applies to deposits (earnings would remain in the account unless withdrawn). Directors asked staff to project expected earnings and the impact on the agency's reserve timeline; staff said they would return with calculations and noted the agency was on track to reach reserve goals around November 2025 under current assumptions.
The board passed Resolution No. 2025-18 on a unanimous roll call to authorize participation in LAIF and to set the parameters described in the staff report.
Ending: Staff said LAIF participation is intended to help the agency accelerate reserve-building and improve fiscal flexibility; finance staff will provide projections on expected earnings and update the board on reserve-timeline impacts.
