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Council moves maturing CDs into money‑market to preserve liquidity and earn ~4%
Summary
Council agreed to reinvest $375,476 from maturing certificates of deposit into a money‑market at Logan State Bank (approx. 4%), favoring liquidity and use of funds to avoid borrowing at higher interest rates for upcoming projects.
Council considered reinvestment options for two maturing certificates of deposit totaling about $375,476. Staff reported current CD and money‑market rates ranging from roughly 3.5% to 3.65%; one councilor reported obtaining a 4% offer for a nine‑month instrument from Logan State Bank. Members compared earning ~4% in a money‑market (with liquidity) versus locking funds into longer CDs or borrowing at 5% for capital projects.
Multiple councilors favored moving funds into a money‑market account at Logan State Bank at the quoted 4% rate so the city could retain ready access to the funds to pay project invoices and potentially avoid borrowing costs. The council approved the motion to reinvest in the money‑market by roll call and discussed using those funds to reduce or avoid planned borrowing for the Lancaster project if cash flow allows.
