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EDA votes to transfer $1 million into Virginia Investment Pool Stable NAV account
Summary
The Charles City County Economic Development Authority voted Feb. 5 to move $1,000,000 from its Truist checking account into the Virginia Investment Pool Stable NAV liquidity pool to seek higher returns while retaining ready access to funds.
Travis Johnston, a board member, moved that the Economic Development Authority transfer $1,000,000 from the Authority's Truist checking account into the Virginia Investment Pool (VIP) Stable Net Asset Value (Stable NAV) liquidity pool immediately; David “Troy” Boroughs seconded the motion, and the Board approved it.
The motion followed a presentation from VML Vaco Finance representatives. Steve Mulroy, Managing Director with VML Vaco Finance, described VIP as a cooperative investment program used by nearly 200 political subdivisions and said the Stable NAV option offers daily liquidity and a stable dollar-in/dollar-out structure. "The Stable NAV portfolio invests in high-quality short-term instruments such as negotiable CDs, commercial paper, and repurchase agreements," Mulroy said, noting S&P AAA ratings for the product. Scott Helenack, Deputy Director, added that transfers can be executed by wire or ACH and that wires initiated before 2:00 p.m. can be same-day.
Board members asked how VIP activity would appear in monthly financial reports and who would have access. Director Cynthia Boone said the EDA currently has about $109,000 in the VIP account and that she would begin including VIP updates in the monthly financial report and coordinate login access for the Chair and Treasurer. Mulroy said there are no penalties for moving money into or out of Stable NAV and that VIP does not charge wire or ACH fees (banks may charge wires).
The Board approved the transfer and directed staff to coordinate account access and notifications with VML Vaco Finance. The motion passed and implementation steps (account set-up and transfer mechanics) will be coordinated by staff ahead of the next meeting.
