Treasurer says Norwich earned $3.4M in interest last year, plans STIF sweeps and tighter AP timing

Norwich's treasurer reported a stronger‑than‑expected year for investment income and outlined steps to keep more public funds working rather than idle.

The treasurer told council members the city "did around 3,400,000 in earned interest last year" against a target of about $2.6 million and said the city expects to remain over budget for interest this year. He described moving four division accounts for Norwich Public Utilities into the Connecticut State Short‑Term Investment Fund (STIF), which he said was paying about 3.7% at the time of the meeting. He estimated that sweeping idle daily balances into STIF accounts could add "anywhere from 3 to 400,000 in additional interest for NPU next year," depending on cash‑flow needs.

To further capture returns, the treasurer said staff would tighten accounts‑payable timing so invoices are not paid weeks early without justification; departments must include invoice due dates on AP requests and justify any early payment that would forfeit investable yield.

Council members noted a prior bank relationship change that removed per‑transaction fees: an RFP prompted a move from Bank of America to People's United, later acquired by M&T. A council member asked whether the STIF discloses specific investments; officials said the STIF derives income from state loan pools and that the city can request information about what the fund holds.

No formal action was taken; the discussion centered on cash‑management practices designed to boost near‑term investment returns for the city's funds.