17999_Authority_December

municipalauthorities.org | 49 a b etter b alance PLGIT’s focus on security and growth provides stability for local governments By Paul Robinson, Institutional Sales and Relationship Manager, PFM Asset Management LLC The world of finance and investment is in a constant state of change. Interest rates rise and fall, local and economic health improves and declines, technology has expanded the world of investing and made transactions faster with each passing month. At PLGIT, we’re well aware of the effect this has on local governments. For more than 40 years, PLGIT has anticipated this kind of change – and has responded with its own new products and systems. But this kind of change wouldn’t be possible without a firm foundation of safety and service. In this article, we review several of the changes that have come about in the last decade, and examine core principles that remain the foundation for our growth and longevity. Evolving with Local Governments As of June 30, 2024, more than 3,250 local governments, municipal authorities, and schools have invested over $11 billion total assets in PLGIT programs. PLGIT continues to evolve, keeping pace with change by adding products and services as technology improves and as those Investors’ needs grow. Over the last several years, PLGIT has added the following to its menu of Investor offerings: Online money management - Two years ago, PLGIT replaced its existing online portal with Connect, which kept all the tools from the previous portal that made working with your municipality’s PLGIT accounts easy, and added several upgrades, functions, and design improvements. Those enhancements include more rapid access to current yields, better access to more data, an enhanced transaction module, and much more to enable local government staff to streamline financial operations. Connect has seen rapid adoption by participants and continues to offer increased efficiency, reporting options and security. 89% of all ACH transactions processed in PLGIT in 2023 were completed online through Connect. Enhanced security - In August of 2018, PLGIT extended multi-factor authentication (MFA) to its online portal. MFA is an industry leading practice for verifying the identity of a user. While no process can completely eliminate online security threats, MFA employs multiple methods for determining a user's identity and is viewed as one of the best available ways to protect confidential information. Expansion of new products - The signing of Act 10 of 2016 removed outdated constraints placed on municipal investors, enabling them to seek higher earnings on the funds they invest on behalf of taxpayers. Act 10 gave municipal investors a greater range of investment vehicles that offer increased diversification and the potential for more competitive yields, including: • Commercial paper • Negotiable certificates of deposit (CDs) • Bankers’ acceptances: • Insured Bank Deposit Reciprocals As a result, PLGIT expanded their PLGIT/PRIME and PLGIT/TERM shares to incorporate Act 10-eligible investments and take full advantage of Act 10’s additions to local governments’ individual codes. PLGIT also created new products to meet the needs and changing practices of local government managers: Continued on page 61.