The Kentucky League of Cities (KLC) understands better than any other organization the rising costs associated with municipal services and pension liability. That’s why we are constantly working to develop beneficial programs to protect and maximize local resources.
During the 2019 legislative session, one of many KLC initiatives that passed was House Bill 69, which gives local governments and school districts expanded investment options. As a result of HB 69, the Kentucky League of Cities Investment Pool (KLCIP) has been re-established as an investment tool within the limited municipal revenue landscape. Local governments will now have new investment options including corporate bonds and equities.
Like our member-driven insurance and finance programs, KLCIP brings the strength of KLC. It uses a model that allows each member to invest based on its own financial goals and needs. Members benefit from the program's economies of scale and may obtain asset management at a lower cost.
KLCIP is administered by KLC, governed by a Board of Trustees comprised of Kentucky local leaders and managed and advised by PNC Institutional Asset Management. KLCIP may complement your local banking relationships.
As a tool created for cities, KLCIP emphasizes safety, easy access and competitive yield. Whether your city is seeking safety and liquidity for surplus funds or long-term growth for CERS pension fund payments, KLCIP through the expertise and advice of PNC can provide individualized options.
To participate in KLCIP, your city must have a Model Investment Policy in place. KLC has developed a sample policy available for this purpose. KLCIP will go into effect after July 1, 2019, but cities can take steps now to learn more about the pool. Cities can join the pool at any time.
With questions, email KLC Chief Financial Officer Dawn Harlow or call 859.977.3700.