Local Government Investment Pool (LGIP)
Overview
The Local Government Investment Pool (LGIP) is a voluntary investment vehicle operated by the State Treasurer. Over 450 local governments have participated in the pool since it was started in 1986 to provide safe, liquid, and competitive investment options for local government pursuant to RCW 43.250.
The LGIP lets local governments use the State Treasurer's resources to safely invest their funds while enjoying the economies of scale available from a $5-8 billion pooled fund investment portfolio.
LGIP's investment objectives are, in priority order: 1) safety of principal, 2) maintaining adequate liquidity to meet cash flows, and 3) providing a competitive interest rate relative to other comparable investment alternatives. LGIP offers 100% liquidity to its participants.
LGIP is comparable to an SEC regulated Rule 2a-7 money market fund. LGIP investment guidelines are spelled out in the LGIP Investment Policy. For more information on the LGIP please take a look at our operations manual or please feel free to contact us if you have any questions.
Local governments that are eligible to join are: cities and towns, counties, special taxing districts, municipal corporations, community and technical colleges, and four-year universities. The LGIP was originally created for smaller entities but today LGIP Participants include:
- All 39 counties
- All cities above a population of 10,000
- 232 cities and towns
- 154 special taxing districts
- 30 community colleges and universities