Council authorizes short-term use of NPATE while local bank RFP proceeds

The North Platte City Council on May 6 adopted an enabling resolution authorizing participation in the Nebraska Public Agency Investment Trust (NPATE) to allow short-term investment of bond proceeds related to the community recreation center project while staff completes an RFP for local bank deposits.

Councilmember Garrick moved adoption and the motion carried; the city recorded six votes in favor and one abstention. A council member who is involved in bank RFPs said he would abstain. Staff and a local banking expert explained that NPATE can offer higher short-term yield but involves different asset types and is not FDIC insured; staff emphasized the tool would be used temporarily while the city completes an RFP for local banks and then could move funds out of NPATE.

Why it matters: Bond proceeds often arrive before the city needs them for construction; investing them short term preserves interest-earnings that help offset borrowing costs. The council's action gives staff a temporary investment option but preserves the preference to use local banks if competitive offers are received through the RFP process.

Details from the meeting: Staff said the city expects to receive bond proceeds around mid-May and had already issued an RFP to local banks. Staff recommended offering a portion to local banks first and using NPATE only for amounts local banks decline to hold. A local banking expert advised councilors that NPATE holdings can include commercial paper and are not equivalent to the bank-pledging options banks offer for municipal deposits.

Decision: Resolution passed (6 yes, 0 no, 1 abstain). Staff will proceed with the local bank RFP and may temporarily place funds into NPATE while the RFP is completed.