Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Investments topic
No spam. Unsubscribe anytime.
Midway council authorizes moving funds to higher-yield accounts to boost returns
Summary
Council unanimously authorized Town Manager Brock Hall and Finance Officer Linda Hunt to seek higher-yield accounts and to move at least $1 million from low-interest checking, estimating potential additional annual income between $50,000 and $150,000.
Midway Town Council on April 23 authorized town staff to pursue higher-yield banking options and to move at least $1 million out of low-interest checking accounts in search of better returns.
Town Manager Brock Hall reported the Town had about $2.3 million across seven bank accounts, with large sums sitting in low-yield checking. He identified a Home Trust money market paying only 0.25% on approximately $1.3 million. Mr. Hall estimated that simple reallocations could generate roughly $50,000 a year in additional interest, with aggressive negotiations potentially producing up to $150,000 more annually.
Councilors voted unanimously to permit Mr. Hall and Finance Officer Linda Hunt to optimize banking relationships and to establish new accounts if necessary to secure better rates. The authorization included direction to return with reporting on new rates and balances once implemented.
The move does not change budget appropriations; it is an administrative cash-management action intended to increase investment income within existing fund balances. Staff will report results and any bank relationship changes to Council after execution.
