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Somerset council approves $1.25 million shift to state and county investment pools
Summary
On March 3, 2025, the Somerset Town Council approved moving $1,250,000 from the town’s Truist savings account into the Maryland Local Government Investment Pool and the Montgomery County investment pool to earn higher interest, following staff and finance‑committee support.
Somerset — The Town Council voted March 3 to move $1,250,000 from the town’s Truist savings account into two higher‑yield investment pools overseen by the state and the county, the Town Manager said.
"We currently have a savings account with Truist that we have quite a bit of money in, but it doesn't accrue much interest at all," the Town Manager explained during the council meeting. The funds will be split evenly between the Maryland Local Government Investment Pool and the Montgomery County investment pool "as recommended by the town manager and the finance revenue and budget committee." The motion was moved, seconded and approved on a voice vote.
Councilors discussed consolidating bank accounts and whether the transfer raised any new risk. Council President Barr asked whether the move changed the risk profile; the Town Manager replied it did not and that both investment pools are administered by local government entities. Councilor Kabir Kumar noted the consolidation was part of a broader effort to streamline accounts.
The council did not place additional restrictions on the transfer. Town staff said the change was intended to increase interest earnings while keeping funds in instruments overseen by government entities. The transfer will be executed by the town manager following the vote.
What happens next: The transfer will be completed administratively; councilors said they plan no further action on this item unless staff recommends otherwise.
