September 1, 2008
Investments
Increased Investment Revenue With Smarter Investment Policy
Once I was elected to the office of City Treasurer in 2003, I discovered that a former city manager was keeping significant amounts of money in a simple low interest account. The amount of interest earned on millions of dollars was about 1.5%, equating to $130 thousand in revenue for the entire year.
I pushed for and approved a new, no-risk investment policy that earns the City coffers over $500 thousand per year in interest payments. The Finance Department only buys Treasury Bills that are fully insured. The treasury bills can potentially earn as much as 3% more interest than the prior investment practice on a total balance of approximately $16 million the city has available to invest.
