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Utility board targets short-term T-bill purchases as interest-rate option
Summary
Board members discussed short-term Treasury-bill investments versus money-market or CD options and settled on targets (about $600,000 from water and $1,000,000 from electric funds) to be formalized at a future meeting with a resolution to add a financial provider and authorize amounts and renewal parameters.
Board members discussed options for investing utility operating funds on Sept. 23, weighing short-term Treasury bills, money-market accounts and certificates of deposit.
Staff summarized recent trading yields, noting short-term T-bill yields in early September were roughly 4% and that rates were expected to fall in coming months. Discussion focused on liquidity needs, term selection (four to 17 weeks), and how much to safely place from each fund. Members expressed a preference for shorter terms to preserve liquidity while capturing current rates.
The board directed staff to pursue further analysis and said they would consider amending the depository resolution at the next meeting to add an authorized financial provider and to establish a resolution that would specify investment amounts and allowable renewals. As an interim target during discussion, the board settled on roughly $600,000 for water funds and $1,000,000 for electric funds, with staff to return with specific recommendations and a formal resolution before executing purchases.
