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Needles council approves moving surplus funds into state investment pool (LAIF) for liquidity and yield
Summary
Council approved an updated investment policy to place excess city funds into the state Local Agency Investment Fund (LAIF) to improve liquidity and capture a current ~4.48% return; staff emphasized safety, same-day liquidity, and that the policy will be reviewed annually.
The City of Needles voted to adopt a revised investment policy that directs the city to place surplus or excess funds into the state Local Agency Investment Fund (LAIF) to achieve greater yield and same-day liquidity. Staff said the pool currently returns approximately 4.48% and carries low risk because it pools local-government assets under state oversight.
Interim Finance Director Jill Tara told the council that much of the city's cash had previously been held in bank accounts and some short-term certificates of deposit earning minimal yield; the revised policy formalizes use of LAIF and delegates routine authority to the treasurer, with annual reporting to the council as required by state law. A council member asked about fees; staff said there are none.
Staff noted LAIF allows same-day liquidity if funds are requested before the fund's deadline; staff recommended sending surplus funds while keeping a two-week operating balance in the city bank account. The council approved the policy by roll-call vote.
Implementation steps: staff said they will transfer appropriate balances, report monthly treasury statements to the council, and bring a separate item to open a LAIF account for the housing authority.
