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Nelsonville council tables ordinance on auditor's authority to invest funds; debates treasurer role and outlines investment plan
Summary
Council tabled an ordinance that would have authorized the city auditor to invest funds in a CD account after debate over whether such authority belongs to the treasurer; members discussed bank guidance, a $600,000 USDA requirement in a money-market account, and a plan to ladder roughly $3.6 million into CDs at about 3.5% interest.
Nelsonville City Council on June 29 moved to table consideration of an ordinance that would have authorized the city auditor to invest city funds in a certificate of deposit (CD) account. The motion to table was seconded and approved by the members present.
Council members said the item had generated a few emails and uncertainty over whether action of this type requires council approval or is a duty reserved to the treasurer. A representative from People's Bank, identified in the transcript as Kurt, told the meeting that the bank's practice does not require council approval for investments if those authorized to sign on the account proceed; "it was not needed that anyone who signs on the account of their current account can go ahead and authorize the purchase," the transcript quotes.
Council members and staff raised a separate point: even if the bank's practice allows signers to make investments, the Nelsonville charter and separation of duties may require that the treasurer (or specified officials) perform certain functions. Meeting discussion noted the city has been unable to reinvest several funds after a maturity earlier in the year, which participants said resulted in lost revenue for the city.
On the substance of a proposed investment plan, speakers described keeping $600,000 in a money-market account to satisfy a USDA loan liquidity requirement and investing the remaining approximately $3.6 million in a laddered CD structure similar to the city's prior arrangement (roughly $250,000 per CD with one-year maturities). The bank's offered interest rate was stated as about 3.5%; council members estimated that, at similar yields, the CDs could generate approximately $11,000—12,000 in interest under last year's performance. The transcript indicates signers on the account can renew CDs when they mature, but council members emphasized clarity and public transparency while the city continues to recruit a permanent treasurer.
Outcome: the council tabled the ordinance and then adjourned the special meeting. The transcript does not record a formal ordinance vote count in the same fashion as the earlier items beyond noting the tabling and the subsequent unanimous adjournment votes recorded for present members.
