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General Gas Roll Board reviews quarter-end escrow report, approves $1 million CD reinvestment
Summary
At its July 15 meeting the General Gas Roll Board heard a June 30 quarter-end escrow report, voted to reinvest $1,000,000 into 12-month certificates of deposit and authorized continued rollovers as CDs mature.
The General Gas Roll Board on July 15 accepted its quarter-end escrow report for the period ending June 30 and voted to reinvest $1,000,000 in 12-month certificates of deposit while continuing to roll other maturing CDs into the board's money market account.
The board's fiscal staff presented the report, saying the beginning balance for the quarter was $4,857,343.11, interest earned for the quarter was $22,069.37, fees deducted were $4,639.72 and distributions totaled $427,707.12, leaving an ending balance of $4,474,159.23 as of June 30. The staff also reported a reduction in outstanding stale checks and a long-term view of CD maturities and rate ranges.
Board members discussed whether to reinvest additional funds as several CDs will mature in early August. The staff recommended investing another $1,000,000 now while leaving roughly $475,000 in the money market unless large distributions are expected. A board member moved to proceed with that investment strategy and the motion was seconded.
On a roll call, the members who were called answered in the affirmative and the motion to invest $1,000,000 in 12-month CDs and to continue to roll maturing CDs into the money market when they come due was approved. The staff said several CDs will mature on August 7 and that another $1,000,000 could be placed at that time if the board so directs.
The staff noted the escrow agent First Bank & Trust has handled distributions since February 2010 and that total distributions since then exceed $37 million. The presentation reviewed the board's outstanding checks (about $8,905.92 not yet escheated), current CD holdings (including a recent $1,000,000 purchase maturing in April 2026), and current rate comparisons.
The board did not change the board's standard investment policy during the meeting; members directed staff to proceed with the $1,000,000 reinvestment and to provide notice to the board if any large distributions are expected before additional CDs are purchased.
