Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Finance Banking topic
No spam. Unsubscribe anytime.
Morgan Township trustees approve insured cash sweep account with LCNB
Summary
Trustees voted unanimously to enroll township funds in LCNB's insured cash sweep (ICS) program to keep deposits FDIC-insured while earning a higher interest rate.
The Morgan Township Board of Trustees voted to enroll township funds in an insured cash sweep product offered by LCNB, after a presentation by bank staff explaining how the account would keep deposits FDIC-insured while paying a higher yield.
The trustees approved the enrollment by roll call after hearing details from Jason Lyda, director of commercial deposits for LCNB, and Kim (LCNB relationship manager). "Essentially, what this is going to allow is your funds to remain FDIC insured, with our institution, but pay you a higher rate of return," Lyda said, citing an example annual percentage yield of about 2.53 percent for funds placed in the sweep product.
The product described would maintain a target balance in the township's operating checking account (the bank suggested a $100,000 target in the example) while sweeping amounts above that into a pooled, FDIC-insured vehicle. Lyda and Kim said the swept funds would remain accessible and that the township's existing account number would not change. The bank representative said there are no additional account fees beyond the township's existing fee arrangements.
Tina (Township fiscal officer) and trustees asked about operational details: who must sign paperwork, whether new signature cards or checks would be needed, how overnight sweeps would appear on statements, and whether funds could be moved back to the operating account automatically. Lyda said the sweeps occur as single transfers at night to maintain the target balance and that the township would receive online and monthly statements showing the target and available balances.
Trustee [last-name] made the motion to enroll the township in LCNB's ICS program effective February 2025; it was seconded and approved by roll call: Trustee Cole, Trustee Brucker and Trustee Huff voted yes. The board agreed to complete account paperwork after the meeting; the bank staff said they would email secure account documents and signature cards for current signers if required.
The trustees and fiscal officer said they favored the change, noting the difference between the township's near-zero interest on checking and the potential monthly interest the sweep could generate on larger balances.
The trustees did not attach any conditions in the meeting minutes to the enrollment; the motion carried as recorded.
