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Tyrone DDA to pursue eligibility for Georgia Fund One for idle cash
Summary
Staff briefed the board on permissible options for investing idle DDA cash and offered to prepare a resolution to request participation in Georgia Fund One; the board asked staff to draft the resolution for the next meeting.
DDA staff reviewed allowed investment options for idle cash and recommended pursuing participation in Georgia Fund One, the state’s local government investment pool.
Staff explained that municipalities typically hold idle funds in insured deposits, government securities or via the state pool (Georgia Fund One). Because the DDA is not automatically eligible to participate, staff said the board can approve a resolution and submit a written request to the state depository board to request participation. Philip reported an invoice for $30,000 has been sent to the town and that roughly $60,000 more is expected by July; the board heard that the current interest rates on the town’s account were just under 1 percent.
The board asked staff to prepare a resolution for the next meeting so the DDA can apply for Georgia Fund One participation pending state approval. Members suggested that the finance subcommittee develop an overall investment policy that would specify how much idle cash to place in Georgia Fund One versus T‑bills or CDs.
Next steps: staff will prepare a resolution and the finance subcommittee will draft an investment strategy to bring back to the board.
