Soldotna buys into buckets

  • By Rashah McChesney
  • Wednesday, April 22, 2015 10:17pm
  • News

Soldotna has more than $20 million that it wants to invest.

During a Wednesday city council meeting, members voted unanimously to adopt an investment strategy that is less conservative than the one the city currently uses.

“The city has had about $20 million sitting around making about two-tenths of a percent of interest over the year, because it has been set in a very, very secure situation — which is basically doing nothing — and we think that it’s inappropriate for the city to not be generating more revenue from that,” said Mayor Nels Anderson.

As of Dec. 31, 2014, the market value of Soldotna’s investments totaled about $23.5 million, according to documents from Alaska Permanent Capital Management, APCM. Of that money, $20.5 million is invested by APCM in a U.S. Treasuries and Agency portfolio, while $3 million sits in the Alaska Municipal League Investment pool. Neither portfolio earns much.

Last year, Kenai had an income of about $678,442 from investments in a variety of entities. Soldotna’s annual income from investments was $171,934.

Council members approved a long-term investment plan that would place the city’s money in three categories, or buckets, with different investment timelines and purposes.

The first bucket, would be a short-term, high-quality government portfolio and money market account. This account would be a low risk, low return account that would allow for high liquidity. The second would have bonds and securities with a maturity range of 1-5 years and the third would be for investments longer than five years, according to APCM documents.

Council member Pete Sprague said he supported the city’s move toward diverse investing.

“This is a pretty important step that we’re taking tonight,” he said. “I think our finances are in great shape and I think this is going to improve a really good situation.”

Reach Rashah McChesney at rashah.mcchesney@peninsulaclarion.com or follow her on Twitter @litmuslens. Clarion file material was used in this article.

More in News

National Weather Service radar for the Kenai Peninsula and Southcentral Alaska on Aug. 17, 2022. (Screenshot)
Rain, rain and more rain

Low pressure systems drive wet conditions in Southcentral

Sockeye salmon return to Steep Creek to spawn. Alaska’s overall commercial salmon harvest across all species is currently up 15% from 2021 (2020 for pinks) with Bristol Bay and the Prince William Sound largely carrying the weight while other regions lag, according to data from the most recent Alaska Seafood Marketing Institute weekly salmon harvest update. (Ben Hohenstatt / Juneau Empire)
Statewide salmon harvest on the upswing compared to last year

Bristol Bay and Prince William Sound are mainly pulling the weight

Jake Dye / Peninsula Clarion
Congressional candidate Mary Peltola responds to a question during a forum at the Kenai Visitor Center on Aug. 3 in Kenai . Early Wednesday, Peltola had earned 38.4% of first-choice votes in a race that will determine who fills Alaska’s lone U.S. House seat until January.
Mary Peltola responds to a question during a forum at the Kenai Visitor Center on Aug. 3, 2022, in Kenai, Alaska. (Peninsula Clarion/Jake Dye)
Democratic candidate Peltola leads U.S. House race early, but Palin may win in final count

Former governor and Republican U.S. House candidate Sarah Palin stands to benefit from ranked choice voting

COVID-19. (Image courtesy CDC)
COVID hospitalizations on the rise

86 patients were hospitalized with 10 patients on ventilators

2022 gubernatorial candidate Charlie Pierce walks in the 65th annual Soldotna Progress Days Parade on Saturday, July 23, 2022 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Pierce among leaders in governor’s race

Incumbent Gov. Mike Dunleavy leads the pack overall

Braeden Garrett holds signs supporting Alaska House of Representatives candidate Justin Ruffridge at the intersection of the Kenai Spur and Sterling highways on Tuesday, Aug. 16, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Ruffridge, Babcock lead in early primary results

Unofficial preliminary primary election results showed significant margins between the first- and second-place candidates

Pollworkers Carol Louthan (center) and Harmony Bolden (right) work at the Soldotna Regional Sports Complex on Tuesday, Aug. 16, 2022 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Local voters cast ballots, try out ranked choice

Locally, multiple candidates have their sights set on seats in the Alaska Legislature.

U.S. Senate candidate Kelly Tshibaka joins Donald Trump on stage during a rally at the Alaska Airlines Center on July 9, 2022, in Anchorage, Alaska. Tshibaka is seeking to become one of four candidates to advance in the U.S. Senate race during Alaska’s primary election Tuesday, Aug. 16. (Bill Roth/Anchorage Daily News via AP, File)
U.S. Senate candidate Kelly Tshibaka joins Donald Trump on stage during a rally at the Alaska Airlines Center on July 9, 2022, in Anchorage, Alaska. Tshibaka is seeking to become one of four candidates to advance in the U.S. Senate race during Alaska’s primary election Tuesday, Aug. 16. (Bill Roth/Anchorage Daily News via AP, File)
Murkowski advances in Senate race, Palin in House

Kelly Tshibaka, her GOP rival endorsed by former President Donald Trump, was among the candidates bound for the November general election

Most Read