Alleghany County moves transfer-facility funding and votes to invest county reserves

The Alleghany County Board of Commissioners voted to advance funding for a planned transfer facility and to invest county funds in the North Carolina Capital Management Trust.

At the meeting in Sparta the board approved General Fund budget amendment No. 5 to allocate fund balance toward the transfer facility, approved a $1,500,000 transfer into the facility’s budget and then approved placing the $1.5 million into the North Carolina Capital Management Trust. County staff also presented a proposal to consider placing up to $5,000,000 of county fund balance in the trust to generate interest revenue for county projects.

County Manager (speaking as county staff) described the trust as an entity created in 1981 and emphasized that the trust’s stated priorities are “safety, liquidity, and yield,” and that money could be withdrawn quickly if needed. The manager said the interest earned on the $1.5 million would be dedicated to the transfer facility. When asked whether the trust has the same protections as a bank, staff answered that it is not FDIC insured but described it as “approved by the Local Government Commission” and as having different protections than a bank deposit.

Commissioners pressed staff on participation counts, liquidity and potential market volatility. One commissioner noted the county’s regular savings yield was “below 3%” and another said an annual interest estimate of roughly $200,000 had been discussed as a possible upside. Staff warned that the trust is an investment and principal values can move with market conditions.

Following the presentation and questions, a motion to approve the investments and associated budget actions was moved, seconded and passed by the board.

Votes at a glance: the board approved the General Fund amendment to fund the transfer facility; approved a $1,500,000 transfer into the transfer facility budget; and approved depositing that $1,500,000 into the North Carolina Capital Management Trust, with the advisor noting the county may consider up to $5,000,000 of fund balance for the trust in a separate or follow-on action.

The meeting packet included other related budget actions and approvals: the board approved an opioid-settlement carryover for jail-based addiction treatment services, and accepted two EMS grants totaling $25,000 for training equipment. The board moved into a closed session later in the meeting to discuss an economic development matter under the statutory citation provided during the meeting.

The county manager’s report also said staff submitted an application by Sept. 30 for an interest-free loan with Blue Ridge Energy and announced recent hires, including a Veterans Association director and a grant writer who will start in November.