The city of Ridgecrest has millions of dollars invested in U.S. Treasury securities, a decision that has proven to be a strong safeguard for its financial stability during uncertain times. This was highlighted at the Nov. 12 Finance Committee meeting.
As of Sept. 30, Ridgecrest had nearly $66 million in Treasury securities, earning $730,073 during the quarter. This amounts to an annualized yield of 4.78%, higher than the 4.56% average daily yield offered by the Local Agency Investment Fund (LAIF).
Finance Director Cheri Freese explained that investing in Treasury securities not only provides higher returns but also offers more stability. “By locking in rates for a set period, we avoid the volatility expected in LAIF over the next few months,” she said.
Mayor Eric Bruen echoed this, noting that recent interest rate cuts and potential further reductions could make LAIF yields less reliable. “Rates could drop significantly, as we’ve seen in 2009 and 2020, but our Treasury investments ensure our returns won’t plummet overnight,” he said.
In other news, Freese announced she has accepted a new position with Monterey One Water, a wastewater agency in the Monterey area. She plans to leave her role with Ridgecrest by the end of the month. Assistant Finance Director Kelly Brewton will take over temporarily until a permanent replacement is found.
“You’ve been a tremendous asset to the city’s finances,” said Councilman Scott Hayman, praising Freese’s contributions. “You’ve done an excellent job and are leaving on a high note.”