City shifts funds to LGIP after bank yield dropped; $2M liquidity cushion kept
September 19, 2026 | Lake Forest Park, King County, Washington
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Hill said the city discovered a bank change that left municipal deposits earning almost no interest and moved funds into the LGIP while keeping $2,000,000 available for liquidity. "We moved everything but $2,000,000 out of the bank into the LGIP," Hill said; he added the LGIP moves can be liquidated in about 24 hours if needed.
Council members asked whether the council should set policy guardrails for how much the city invests and how laddered-bond reinvestment should be handled as unallocated balances fluctuate. Hill said existing guardrails are based on maximums and the council should revisit them as part of broader fiscal-planning discussions.
Council members asked whether the council should set policy guardrails for how much the city invests and how laddered-bond reinvestment should be handled as unallocated balances fluctuate. Hill said existing guardrails are based on maximums and the council should revisit them as part of broader fiscal-planning discussions.
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