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 or follow her on Twitter @litmuslens. Clarion file material was used in this article.

More in News

LaDawn Druce asks Sen. Jesse Bjorkman a question during a town hall event on Saturday, Feb. 25, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
District unions call for ‘walk-in’ school funding protest

The unions have issued invitations to city councils, the borough assembly, the Board of Education and others

House District 6 race gets 3rd candidate

Alana Greear filed a letter of intent to run on April 5

Kenai City Hall is seen on Feb. 20, 2020, in Kenai, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)
Kenai water treatment plant project moves forward

The city will contract with Anchorage-based HDL Engineering Consultants for design and engineering of a new water treatment plant pumphouse

Students of Soldotna High School stage a walkout in protest of the veto of Senate Bill 140 in front of their school in Soldotna, Alaska, on Wednesday, April 17, 2024. (Jake Dye/Peninsula Clarion)
SoHi students walk out for school funding

The protest was in response to the veto of an education bill that would have increased school funding

The Kenai Courthouse as seen on Monday, July 3, 2023, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Clam Gulch resident convicted of 60 counts for sexual abuse of a minor

The conviction came at the end of a three-week trial at the Kenai Courthouse

The Kenai Peninsula Borough Assembly meets in Seward, Alaska, on Tuesday, April 16, 2024. (screenshot)
Borough awards contract for replacement of Seward High School track

The project is part of a bond package that funds major deferred maintenance projects at 10 borough schools

Kenai Peninsula Education Association President LaDawn Druce, left, and committee Chair Jason Tauriainen, right, participate in the first meeting of the Kenai Peninsula Borough School District’s Four Day School Week Ad Hoc Committee on Wednesday, Jan. 10, 2024, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
4-day school week committee talks purpose of potential change, possible calendar

The change could help curb costs on things like substitutes, according to district estimates

A studded tire is attached to a very cool car in the parking lot of the Peninsula Clarion in Kenai, Alaska, on Monday, April 15, 2024. (Jake Dye/Peninsula Clarion)
Studded tire removal deadline extended

A 15-day extension was issued via emergency order for communities above the 60 degrees latitude line

A sign for Peninsula Community Health Services stands outside their facility in Soldotna, Alaska, on Monday, April 15, 2024. (Jake Dye/Peninsula Clarion)
PCHS to pursue Nikiski expansion, moves to meet other community needs

PCHS is a private, nonprofit organization that provides access to health care to anyone in the community

Most Read