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County hears bank proposal to reinvest STIP funds and ladder CDs
Summary
A bank representative presented options to reinvest county STIP funds using IntraFi/CDARS/ICS products, laddered CDs and a sweep account to improve returns while keeping funds local; commissioners requested written proposals and sample scenarios.
A bank representative met with the Daniels County Commission to outline options for reinvesting county funds currently in the state investment pool (STIP). The bank described savings products that could match STIP on a monthly adjustment, laddered certificates of deposit for longer terms and a reciprocal network approach to extend FDIC coverage for large balances.
The presenter said recent STIP yields were strong but variable, and recommended a mix of instruments to balance liquidity and return. "Right now, in September, it was at 4.44," the bank representative said, describing recent STIP performance. The representative also described a CDARS/IntraFi option, saying the network can provide "FDIC coverage up to a $150,000,000" across reciprocal institutions while keeping funds placed locally for lending and audit transparency.
Commissioners asked about term limits, weekly placement caps for multi‑week investments and how to structure a ladder. Staff asked the bank to prepare two written proposals, including an illustrative scenario based on $1,000,000 and a laddered $3,000,000 option. No formal action was taken at the presentation; commissioners asked staff to circulate the bank's written proposals and work with the treasurer to compare options.
