Maxwell council weighs higher-yield options as bank offers tailored accounts

Council members on Monday discussed how to invest roughly $1 million of city funds that are currently yielding about 1.5 percent, and heard a presentation from a local banker offering tailored deposit products.

The discussion opened with a council member saying the city has funds available and should explore higher yields now that market rates have risen. The council asked staff to determine the city's short-term cash needs — particularly the six-month window when tax revenues are delayed — before shifting money into longer-term instruments.

Randy Meyer, vice president at Maxwell State Bank, said the bank is "passionate about Maxwell" and can design accounts that balance access and yield. "We want to do right with Maxwell and our deposits," Meyer said, adding the bank could structure products allowing quick access without penalty and would work with the city's authorized signers. He noted posted rates are changing and referenced a current daily yield of about 3.4 percent as an example of market options.

Council members and staff discussed a blended approach: keep short-term liquidity for operating needs and place idle funds into higher-yield certificates of deposit where appropriate. Staff said the city's investment policy already allows multiple options but emphasized identifying the "tightest window" for cash needs so only truly idle funds are moved.

Meyer described the account-setup steps: a notarized signature on the bank's resolution form, designation of authorized signers and prime contacts, and completion of an application packet. He said he left contact information with staff for follow-up.

The council did not take a final vote on any investment transfers. The next step is for staff to review historical revenue and expenditure timing, report on the short-term liquidity needs, and return with a specific recommendation to the council.