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Scofield council discusses investing reserves; treasurer to present options next month
Summary
Councilmembers discussed using brokerage deposits, CDs or T-bills to earn higher yields on the utility and B&C road funds; they asked Treasurer Sherry to gather rates and to invite a financial adviser to present options next month.
The Scofield Town Council on July 14 discussed whether to invest portions of the town's reserves in instruments such as brokered liquid deposits, certificates of deposit with ladder maturities, Treasury bills and money-market funds, and tasked the town treasurer with presenting concrete options at the next meeting.
Council members reviewed account balances the clerk presented: B and C Road Fund, $97,728.48; General Fund, $82,095.29; Pleasant Valley Days account, $56,366.46; and Utility Fund, listed in the meeting as "$304,000.403 10." The council discussed that some investment products require a minimum opening balance of $100,000 for brokered deposits.
Council members and staff discussed liquidity needs and the risk of penalizing the town for early withdrawal. The group considered a mix of short-term CDs, laddered maturities and brokered liquid-deposit accounts to preserve access. One council member noted an APY of about 4% for balances between $100,000 and $499,999 was shown in the materials presented at the meeting.
The council asked the treasurer (Sherry) to research options, prepare a comparative chart of rates and maturities, and to invite the bank's financial adviser or an independent adviser to present at a future meeting. Council members suggested placing some funds from the utility account and a portion of the B and C Road Fund into short- and medium-term investments; no final transfers were approved at the meeting.
Why this matters: Scofield operates on limited revenues and the council signaled interest in using low-risk investment vehicles to increase interest earnings while preserving liquidity for operations and capital needs.
Ending: The treasurer will return with a formal proposal and rate comparisons at the next regular council meeting so the council can decide whether to move funds into investment accounts.
