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Council reviews plan to move idle LCI funds into Georgia Fund 1 for higher yield
Summary
Staff recommended authorizing setup of accounts in the state-managed Georgia Fund 1 to earn higher yields; staff proposed transferring roughly $500,000 from an unused LCI fund into the general fund and then into Georgia Fund 1, and asked council to authorize staff to complete the online resolutions to open accounts.
City staff proposed that the city open accounts in Georgia Fund 1, a state-managed pooled investment, to improve returns on funds that are not actively used. Staff compared present bank yields (example cited as ~0.08% at the city's bank) to Georgia Fund 1 yields (staff cited about 3.69%) and recommended moving idle funds into the state pool where appropriate.
Staff identified an LCI fund with about $500,000 that is currently unearmarked and suggested closing that account, transferring the funds to the general fund and then placing them into Georgia Fund 1 to produce a higher yield. "We have about $500,000 of money that we're we don't have earmarked for anything else," a staff member said when describing the LCI balance. Staff asked council to authorize staff to set up the accounts and to adopt the required online resolutions; no final resolution was recorded at the session.
Council members asked procedural and fee questions; staff said there are limited monthly transfer allowances and minimal management fees but staff will return with specific account setup information if council authorizes staff to proceed.
