Grant County finance committee votes to consolidate bank accounts, set aside restricted-interest trust

GRANT COUNTY, Feb. 18 — The Grant County Board Finance Committee voted Feb. 18 to close one county bank account, sweep balances from several smaller county accounts into a higher-yield main account and create a separate trust account to collect interest on restricted funds, the committee said.

Treasurer April Laguerre told the committee she had already moved money between county accounts and recommended consolidating balances into the county's main Northwest account to earn higher interest. “I did transfer $38,850 from Northwest auditor account to the main account,” Laguerre said. She also told the committee Northwest's annual percentage yield is currently about 3.53 percent but that the bank had notified the county the rate could drop to between 3.28 percent and 3.33 percent.

The committee voted to close the Star account and reduce balances at First Farmers, Grant County State Bank and Via to minimums, then sweep funds into the Northwest account. Committee members approved a separate motion directing the treasurer to open an additional trust account to hold interest on a restricted fund (referred to in the meeting as the MBH restricted fund) so that interest earnings are recorded and tracked separately. Both motions were approved by voice vote.

Why it matters: consolidating cash into a higher-yield account is intended to increase the county's interest earnings; creating a dedicated trust account for restricted-interest ensures funds tied to a specific program are not swept into the general fund and are tracked independently. The committee also discussed the administrative and statutory limits on departments and elected offices maintaining separate bank accounts, an issue the treasurer said affects the office's ability to audit county funds.

Details of the actions and discussion

• Bank accounts and interest: Laguerre recommended closing Star and moving balances from several smaller accounts into Northwest, which currently yields more interest. She told the committee Northwest pays monthly interest while Via pays quarterly. Laguerre said some banks would not raise rates and recommended moving cash into the higher-earning account; she also said the county can reopen accounts later if needed.

• Transfers already made: Laguerre reported a completed internal transfer of $38,850 from a Northwest auditor account to the main county account.

• Trust accounts: Committee members confirmed there is no legal limit on the number of trust accounts. Laguerre proposed creating an additional trust account to hold interest tied to restricted funds; the committee approved adding another trust account and directed the treasurer to start posting restricted-interest separately beginning with February activity.

• Departmental accounts outside the general fund: Committee discussion and a letter from the finance office disclosed several department-level bank accounts outside the general fund. The treasurer reported having received responses from the health department (checking and savings totaling about $28,000), the recorder's office (about $51) and the EMS (about $152,000). An attorney on the panel noted statutory rules that permit certain accounts and said it hampers the treasurer’s oversight when offices maintain accounts the treasurer does not know about. “It makes the treasurer's job a lot more difficult, if not possible, if she can't review things that she doesn't know exist,” said Justice Sadoff, attorney.

• Notices to taxpayers and payment options: Committee members discussed whether the county must or should advertise changes to the banks that accept tax payments. Laguerre said the list of banks that accept tax payments appears on the back of tax statements and can be removed from the draft statement; she also noted the county can publish changes on its website. Committee members discussed payment alternatives, including escrow accounts used by large payers and third-party online processors that charge convenience fees.

Formal motions and votes

• Approval of minutes for Aug. 5, 2024 and Jan. 21, 2025 — motion passed by voice vote.

• Motion to close the Star account, reduce balances at First Farmers, Grant County State Bank and Via to minimums, and sweep balances into the Northwest main account — motion passed by voice vote.

• Motion to move interest on the MBH restricted fund into a separate trust account starting with February activity — motion passed by voice vote.

No roll-call tallies were recorded in the transcript; the committee approved the motions by unanimous voice vote.

What remains unresolved

Committee members asked staff to provide a complete breakdown of county bank accounts outside the general fund and to confirm which accounts are statutorily permitted. The treasurer said she will provide a follow-up report at the next board of finance meeting showing current balances and where interest is being credited. The committee agreed to schedule a subsequent meeting in March or April to continue the audit of outside accounts and to coordinate with the treasurer's office.

Ending

The committee recessed after approving the motions. Members said they would circulate a packet with updated account breakdowns and that staff would coordinate with the treasurer on the accounts audit and any necessary public notifications.