Ketchikan Gateway Borough reports $1.3 million interest in FY24; staff shifts AMLIP allocations

Ketchikan Gateway Borough’s Investment Advisory Committee heard an update on Feb. 6 from Finance Director Charlene Thomas that the borough earned about $1,300,000 in interest on its investments in fiscal 2024 and had earned $647,000 so far in fiscal 2025.

Thomas told the committee the packet chart shows year-to-date interest for fiscal years 2020 through 2025 and that the borough holds three main types of investments: laddered Pershing certificates of deposit (CDs), a Wells Fargo money market account and accounts in the Alaska Municipal League Investment Pool (AMLIP). “We ended last fiscal year 24, with 1,300,000.0 in interest earned on our investments,” Thomas said. “And for fiscal year 25, we're currently at 647,000, so we're right on track to hopefully meet at least what we earned last year in interest.”

Why it matters: the committee provides oversight of funds that support borough operations and the local education fund, which receives interest earnings credited to it. Committee members emphasized preservation of principal as the borough’s primary investment objective and noted the investments are conservative because they are public funds.

Key figures and allocations

Thomas said recent CD purchases have yielded more than 4.3% and that the CDs held by the borough are individually under $500,000 and therefore FDIC insured. She said CD yields in the portfolio range from about 0.35% to 4.8% depending on the instrument and timing. The Wells Fargo money market account produced about a 4.2% annual yield, she said.

Thomas described AMLIP as a custodial short-term investment option used by the borough, the school district, cities and other state government entities. The borough has two AMLIP accounts: series 1, which Thomas said yields about 4.47% annually, and series 2, which the borough opened last year as a higher-risk, higher-yield option. The borough moved $5,000,000 from series 1 to series 2, Thomas said, and after series 2 produced a 4.34% yield the borough recently transferred $3,000,000 back into series 1 to take advantage of the higher yield there.

Thomas also explained the borough’s general bank account earns interest that is allocated to funds with positive balances, and that the local education fund receives 100% of the interest earned on its account.

Committee discussion and direction

Committee members praised the monitoring and responsiveness to yield performance, and one committee member reminded the public watching that the borough’s written investment policy (linked in the packet) places preservation of principal first, which constrains the committee’s risk tolerance relative to private investors. A staff speaker said the committee had not identified other viable investment opportunities over the past year and recommended maintaining the current strategy.

No formal policy change or ordinance was proposed during the meeting; staff reported the reallocations described by Thomas as implemented or completed and the committee indicated support for maintaining the current strategy.

Votes and procedural actions

A motion to adjourn was made at the close of the meeting; the committee adjourned following that motion.

Ending

The committee spent roughly under 10 minutes on the update and did not schedule additional action items; staff said they will continue to reinvest maturing CDs and monitor AMLIP performance and other short-term opportunities.