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Committee discusses limits on placing municipal reserves in interest-bearing accounts
Summary
Members asked whether municipal reserve funds could earn higher interest; staff said some business accounts report "public entities are not eligible," and noted potential administrative and audit implications.
Committee members asked whether the city could move reserve funds into higher-yield, interest-bearing accounts. Staff said some business money-market options reported that "public entities are not eligible," and that any change could create additional administration and monthly reconciliations requiring council review.
Members also raised audit considerations and whether moving funds would affect the audit process. The committee directed staff to consult the city accountant and return with options and implications before making a formal recommendation.
