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Clifton council approves short-term reinvestment of maturing CDs, accepts treasurer's report and authorizes legal payments
Summary
At its Sept. 3 meeting the Clifton Town Council accepted the treasurer's report, approved a motion to reinvest two maturing 18-month CDs in United Bank for seven months at 2.1% and authorized payment of three legal invoices; most motions passed unanimously, one vote recorded 5-0-1 with the mayor abstaining.
The Clifton Town Council on Sept. 3 accepted Treasurer Marilyn Barton's financial reports and voted to reinvest two maturing 18-month certificates of deposit in United Bank for a seven-month term at a 2.1% yield, and authorized payment of three pending legal invoices.
Marilyn Barton presented the Treasurer's report, saying the Town's cash balances totaled $1,236,855.64 and that the Town's deposits are secured under the Virginia Security of Public Deposits Act (SPDA). Barton wrote in an attached message that, "With the Town's funds secured as municipal funds under the SPDA, I am confident that they are not at risk." The council accepted the Treasurer's report by poll, 6-0.
Mayor Bill Hollaway moved to transfer the two maturing 18-month CDs (a combined value stated in the motion as $214,212.56) from John Marshall Bank to United Bank for seven months at 2.1%, a motion seconded by Councilmember Darrell Poe and approved by roll call (Hinderstein: Aye; McDonald: Aye; Milne: Aye; Hollaway: Aye; Effros: Aye; Poe: Aye). The meeting record also includes a financial schedule showing the John Marshall Bank 18-month CDs valued at $214,776.92 as of Aug. 31; the council motion and the financial report therefore record slightly different figures for the maturing CD principal.
The council also considered three legal invoices (two from BZA counsel totaling $5,970.41 and one from Town Attorney Maureen Gilmore for $850) and authorized payment as listed on the financial report by roll call (Hinderstein: Aye; McDonald: Aye; Milne: Aye; Hollaway: Aye; Effros: Aye; Poe: Aye).
Why it matters: the reinvestment and invoice approvals move short-term cash management decisions forward while the Town proceeds with capital planning for Streetscape Phase II. Council members signaled their preference for a conservative, short-term placement to preserve liquidity as the Town prepares grant and match information for VDOT.
What's next: the Treasurer noted that the John Marshall 18-month CDs mature Sept. 19, 2019; the council directed staff to implement the approved reinvestment and to continue coordinating cash-flow projections with the Special Projects Committee for Streetscape planning.
