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Staff explains PTIF, external advisory use and interest treatment
Summary
City staff said most reserve money is held in the state's Public Trust Investment Fund (PTIF) with about 25% with an external advisory group; interest earnings are tracked in a budget line and the council can choose whether to use or park interest revenue.
A city staff member described how the city invests reserve funds and how interest earnings are handled in the budget. "PTIF fund is just man it's the public trust investment fund that's managed by a state group," Staff member (S2) said, and added that the city keeps roughly 75% in PTIF and about 25% with an external financial advisory group to try to outperform PTIF returns.
Staff discussed recent interest-rate impacts: when rates were low the PTIF return was about 1.5%; when rates were higher it reached roughly 4.5%. He said interest is shown in the budget on a separate line and the council can decide whether to spend that interest revenue or leave it parked in reserves.
