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Allegheny‑Clarion Valley board places idle funds in three‑month CD after finance review
Summary
Following a finance presentation comparing CDs and liquid asset accounts, the board voted to move district funds into a three‑month CD, with trustees directing staff to monitor rates for future decisions.
Board members reviewed a finance report that compared certificate‑of‑deposit options and liquid asset (government money‑market style) accounts before voting to place idle district funds into a three‑month CD.
A finance presenter told the board they "contacted six banks" and summarized rates and product features, noting current CD rates were higher in several short‑term offerings and that the district's sweep account had generated roughly $97,000 in interest in 2024 compared with about $23,000 in 2023. The presenter provided sample rates and recommended locking funds in short‑term CDs rather than a variable liquid account, while also recommending staff monitor rates and move funds if conditions change.
Board discussion focused on the tradeoff between a locked short‑term rate and the flexibility of a liquid product. After brief discussion the board voted to move the identified funds into a three‑month CD at the selected institution and directed administration to re‑examine options when the CD nears maturity.
