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Board approves short-term CD at First National to retain liquidity
Summary
Board voted to accept an 11-month CD at First National after staff presented competing offers; members favored flexibility amid uncertain interest-rate conditions.
At a regular meeting, the Harts and Trails Water & Sewer Utility Board approved a motion to accept an 11-month certificate of deposit at First National, a move board members said preserves flexibility while earning a higher short-term yield.
Board discussion reviewed rate proposals included in the meeting packet. A board member said First National offered 4.4% for an 11-month term. Representatives of Wilson Bank & Trust provided proposals included in the packet with multiple term options, which the board described as 4.2% for 10 months, 4.25% for 24 months, 4.3% for 30 months and 4.4% for 42 months (figures as presented to the board).
One board member argued in favor of the shorter 11-month option so the utility would not be locked into a longer term if market conditions change. In the board’s voice vote the motion to move funds to First National carried; the motion and second were recorded but no individual mover/second names or a roll-call tally were provided in the transcript.
The board discussed asking banks to provide comparable term schedules (for example, 10-, 20-, 30- and 42-month offers) so future comparisons are “apples to apples.” No additional financial instruments or long-term investment strategy changes were approved at the meeting.
