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Council moves to accept retroactive CD offer and to roll other CDs into pooled investment amid problems with new bank
Summary
After a Cadence Bank merger produced a botched CD renewal, council accepted a retroactive 4% offer on one certificate and instructed staff to roll two other CDs into the tech‑pool while staff seeks better investment options and rate quotes.
City staff told the council a recent bank merger had disrupted CD renewals and that one CD had been mishandled, prompting negotiations. The bank offered a retroactive 4% rate for an 8‑month period because of the error; the council voted to accept that offer for the affected CD.
Councilors also discussed investment strategy for two additional CDs coming due (CD 0693 and 0753). Given current rate uncertainty, staff was authorized to roll those funds into the local government investment pool (referred to in the meeting as the "tech pool") temporarily while staff solicits rate quotes and other options. Members discussed the trade‑offs between locking funds into longer CD terms versus shorter pools when rates are trending downward.
