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Guthrie council names mayor and clerk as designated investment officers, keeps $2.8M local while seeking better rates
Summary
At a special Oct. 16 meeting, the Guthrie City Council appointed Mayor James Covington and City Clerk Alison Blumel as the city's designated investment officials and voted to keep $2.8 million from the first grant draw for the wastewater treatment plant in a local account while staff pursues higher yields for remaining grant funds.
The Guthrie City Council on Oct. 16 moved to centralize investment authority and to hold $2.8 million from the first grant draw for the city's wastewater treatment plant in a local account while staff continues seeking better rates for the remainder of the grant funds.
Russ Longhurst moved to "appoint the mayor and the city clerk/treasurer [as] the designated officials of any investments made by the city," and Councilmember Harry Green seconded. The motion carried unanimously, the minutes state.
Council then considered options for investing Draw 1 of the wastewater grant, totaling $2.8 million. Minutes record that Elkton Bank offered a six-month certificate of deposit (CD) for $1,000,000 at 5.0% and a 12-month CD for $800,000 at 4.5%, while keeping $1,000,000 in a liquid account with a variable rate. Raymond James proposed a fully liquid account for the full $2.8 million at 4.5% interest; the minutes note FDIC coverage up to $50 million for that option.
Chad Johnson moved to "keep the $2.8M local while trying to secure a better rate for the balance of the grant," and Russ Longhurst seconded. That motion also carried unanimously, according to the minutes. The record does not list individual vote tallies.
The council adjourned at 17:15 after a motion by Harry Green, seconded by Norma Williams.
The minutes were recorded by City Clerk Alison Blumel and bear Mayor James Covington's name. The record does not specify which exact accounts will be used beyond the options discussed or whether staff had an immediate counteroffer to Elkton Bank or Raymond James; the council directed staff to pursue better rates for the grant balance.
