Kodiak moves $10 million of city cash into bonds and Treasury bills

The City of Kodiak moved $10 million into Treasury bills, agency securities and corporate bonds in August, according to the City Council's Oct. 8 work session packet. The investments are projected to earn 4.22 percent if held to maturity, between 0.59 and 0.82 percentage points above the city's liquid accounts at AMLIP and Wells Fargo.

A cashVest analysis by Three+One found the city's managed investments grew from $38.5 million to $48.5 million, raising Kodiak's score one point to 91. The firm says another $33.5 million could be invested while leaving about $27.5 million in high-yield accounts. Kodiak held about $110.6 million in cash and investments as of Aug. 31. The report notes the city lacks a citywide investment policy and urges adopting one as managed investments grow.

The analysis also flags a KeyBank ambulance services account that averaged about $361,000 in August. Keeping $150,000 in that account would cover banking costs. Moving the remaining $211,000 into higher-yield investments could earn about $7,200 a year.

Finance Director Julie Liew's unaudited report for the year ended June 30 shows a General Fund shortfall of $94,587, down from about $1.7 million after a $1,147,877 transfer from the Enhancement Fund. State fish tax revenue and community revenue sharing both came in lower than expected.

The council is scheduled to review both reports Thursday at 5:30 pm.