Clifton Council approves $200,000 CD investment and accepts treasurer's report

The Clifton Town Council on March 3 accepted the Treasurer's Report and voted unanimously to invest $200,000 of town funds into four $50,000, nine-month, no-penalty certificates of deposit at United Bank.

Town Treasurer Marilyn Barton presented the financial reports for the fiscal-year period ending Feb. 29, 2020, noting the town's total cash balance of $1,281,089 and giving a summary of February activity including BPOL receipts and interest income. "The Summary of Cash Balances Report as of February 29, 2020 reflects total funds of $1,281,089," the Treasurer reported in distributed materials accompanying the meeting.

Mayor Bill Hollaway moved to accept the Treasurer's Report; the motion passed by poll vote, 6-0. On a separate motion Hollaway proposed dividing $200,000 from the town's United Bank money market account into four nine-month CDs at the rates provided in the Treasurer's materials. The motion passed by roll-call with every councilmember recorded as "Aye": Hinderstein, McDonald, Milne, Hollaway, Effros and Poe.

The Treasurer's supplemental materials attached to the meeting packet listed current CD rates and a recommendation to invest funds in no-penalty CDs to improve returns while preserving liquidity for planned capital projects. The materials noted the Special Projects Committee did not expect to need SPC funds until spring 2021, informing the council's decision to seek improved interest yields.

Next steps: The Treasurer will execute the CD purchases consistent with the approved motion and provide updates at forthcoming meetings as needed.