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San Clemente treasury staff consider laddering short-term holdings as LAIF balance drops
Summary
Finance staff reported lower LAIF balances and proposed laddering short-term holdings (3, 6, 9 months) to lift front-end yields while maintaining a $20 million minimum LAIF balance; the committee was informed and will await staff recommendations.
Staff informed the Investment Advisory Committee that the city's LAIF balance has declined and discussed a potential short-term laddering strategy to boost yield.
The chair told the committee that staff and finance advisors will consider placing some funds into short-term ladders (three-, six- and nine-month maturities) because "the front end of the curve is giving us that present" and the committee's target minimum LAIF balance is about $20,000,000. No motion was made; staff will determine whether to proceed and report back.
The committee noted the plan aims to preserve liquidity while modestly increasing returns on near-term cash.
No formal action was taken at the meeting.
