We had asked the City Administrator if it is safe for the City to invest millions of taxpayers money in non-FDIC insured financial investments.
His response: "The decision to spread our reserves between local banks and the Local Agency Investment Fund (LAIF) is normal and practical and viewed as "best practices".
It was a strategy that was picked long before my arrival. LAIF has not earned as much interest as our local banks have and while safe is a relative term this day and age, staff feels that the City reserves are safe and making money.
In addition, our outside Auditor has supported our investment strategy. With that said, we are currently looking at a couple of different Investment options that will be coming to the City Council for consideration in the future."
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