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Centreville locks six‑month rate with Shore United amid Fed‑rate cuts
Summary
Finance Officer Karen Luffman told the council Shore United offered a six‑month lock at 3.5%; council approved the lock so town funds would be protected from further anticipated Fed rate cuts.
The Centreville Town Council on Nov. 6 approved a request from Finance Officer Karen Luffman to lock town funds in a Shore United six‑month insured cash sweep (ICS) product at 3.5 percent. Luffman said the town’s variable ICS rate had been 4.13% but dropped after a Federal Reserve action and that additional quarter‑point reductions were expected, which would push the variable rate below the offered fixed rate.
Luffman and staff recommended the six‑month lock to preserve revenue for the near term (Nov.–Apr.). Council moved and approved the request by voice vote.
Councilors did not attach conditions to the authorization; staff said they would execute the lock and report back on outcomes.
