Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council votes to move DOC money into 12‑month CD at Security Bank
Summary
The Lennox City Council voted to transfer DOC (Department of Corrections) money‑market funds into a 12‑month certificate of deposit at Security Bank after brief discussion of bank rates, splitting deposits and potential penalties for early withdrawal.
The Lennox City Council voted to transfer the city’s DOC money‑market funds into a 12‑month certificate of deposit at Security Bank.
A council member moved “to move the DOC money market funds to a 12 month CD in Security Bank,” and staff seconded the motion. Two council members verbally indicated “Aye” and Mayor Danny Bergen declared the motion carried.
Council and staff had discussed whether to keep funds in a money‑market account or lock them into 6‑ or 12‑month CDs, weighing potential early‑withdrawal penalties and the administrative work of changing signatories and accounts. Staff noted some bank‑rate information was provided under SDCL 1‑27‑1.6 to protect the integrity of a possible future RFP. One council member noted the monthly delta between the money market and a 6‑month CD would be about $6,100.
Officials said the move aims to capture higher short‑term yields while continuing to protect reserve funds. Staff said the city can still set up withdrawal provisions if necessary but emphasized a 12‑month CD would likely yield a better return than the money market given current rate expectations.
The council did not record a full roll‑call vote in the transcript; the motion was adopted on a voice vote with no oppositions recorded.
