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Pierson officials move to protect liquidity: $600,000 in maturing CDs to be placed in money‑market account
Summary
Council discussed moving $600,000 of reserves that matured from CDs into a money‑market/checking account earning roughly 2.7% to preserve liquidity for an upcoming truck purchase and ongoing trash and other short‑term needs; staff will confirm rates and public‑depository eligibility.
Rob informed the council that the town had $600,000 in reserve CDs that matured and recommended transferring the funds into a money‑market or checking account currently earning about 2.7% as a short‑term measure. He said the town is borrowing reserves temporarily to pay for a new truck and trash costs and that keeping the funds liquid would allow up to five transactions per month to cover near‑term obligations.
Members discussed alternatives — high‑yield savings accounts at major banks or credit unions — but noted Florida law requires approved public depositories for municipal funds; one credit union had been approved in the state but most credit unions remain ineligible. Rob said staff will confirm current rates with the bank, pursue other options where allowable, and account for likely near‑term withdrawals to cover a $54,000 truck purchase and other needs. No formal investment change was made at the workshop, but plan parameters were set and staff will complete paperwork if the recommended account meets requirements.
The council also discussed periodic review of hookup and meter fees as part of the town’s annual rate schedule so material costs can be updated without changing code midyear.
