The City of Soldotna will be moving its money, hoping for a better return on investments. Mayor Nels Anderson said it’s “inappropriate” for the City to be earning so little…
Mayor Anderson: “The City has had about $20 million sitting around making about two-tenths of a percent interest over the years because it’s been set in very, very secure situations which is doing nothing.”
Anderson said the future investments will still be safe, but the increase in investments earnings may make it possible to lower sales and property taxes.
The new strategy was brought forward by City Manager Mark Dixson, who relied on advice from investment firm Alaska Permanent Capital Management.
APCM suggested dividing Soldotna’s investments into three “buckets,” depending on how soon the money would be needed. Dixson said he agreed with the proposal to put $8 million in a long-term higher-risk fund, $8 million in a medium-term medium-risk fund and the rest (roughly $4 million) in a low-risk low-return fund which could be accessed with very little notice.
The City has an additional $3 million account with the Alaska Municipal League Investment Pool which is used to pay bills.
