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Clifton council approves reinvestment of maturing CDs, handles CARES Act funds and accepts FY19 audit
Summary
At its Nov. 4, 2020 meeting the Clifton Town Council voted to reinvest maturing United Bank CDs, return $10,000 that had been regranted to the Clifton IDA back to the Town to prepare for return to Fairfax County, and approved final audited financial statements for FY2019. The Council also reviewed CARES Act spending and recommended reinvestment options.
The Clifton Town Council on Nov. 4 approved several financial measures: reinvestment of maturing Certificates of Deposit, handling of returned CARES Act grant funds, and acceptance of the town’s fiscal year 2019 audited financial statements.
Councilmember Steve Effros moved to reinvest existing United Bank Certificates of Deposit at an interest rate of 0.30% for 13 months; Councilmember Darrell Poe seconded and the motion passed by roll-call (Hollaway, Effros, McDonald, Poe, Pline, Screen: Aye). Council also approved a motion to return $10,000 that had been returned to the Clifton IDA account back to the Town’s account and to prepare those funds to be returned to Fairfax County, a motion likewise approved by roll-call.
The Treasurer’s supplemental materials and attached draft audited financial statements described the town’s cash balances and CD maturities: total funds reported of $1,323,920.43 and United Bank CDs maturing Nov. 17, Dec. 4 and Dec. 8, 2020, with the total value of maturing CDs about $820,000. The Treasurer’s CARES Act supplemental report showed FY20 federal COVID-19 funding receipts of $51,433 (a subrecipient allocation through Fairfax County) with $1,666.99 expended in FY20 and a deferred balance of $49,766.01 to FY21; $40,000 of that had been allocated to the Clifton IDA for small-business grants, and one recipient returned $10,000 which the Council directed be reallocated or returned as required by Fairfax County procedures.
United Bank staff provided reinvestment recommendations in the materials attached to the Treasurer’s report: suggested CD terms and current APYs in the then-current rate environment (examples included 13-month at 0.30% and longer 25-month at 0.35%), and an option to place proceeds temporarily in a Super Money Market at 0.25% for liquidity.
The Council approved the final audited financial statements for the fiscal year ending June 30, 2019 and also approved the Treasurer’s report as submitted. The audit also identified an item for follow-up: the Industrial Development Authority (IDA) had approximately $45,000 allocated on its balance sheet that the auditor indicated should be returned to the Town; Councilmember Effros said he would confer with Brant Baber and report back at the December Council meeting.
Next steps: with Council direction, staff will proceed with CD reinvestment per the approved motion, prepare the returned IDA funds for county processing, and follow up on the auditor’s finding about the IDA allocation prior to the December meeting.
