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Staff explains trustee-held funds, wire transfers and Wilson Bank & Trust sweep accounts
Summary
Budget staff explained how the county trustee holds district funds and wires money to the district's accounts (Wilson Bank and Trust) when payments are needed; board asked staff to investigate whether the district receives full interest on those trustee-held funds.
Mister Sebastian explained the mechanics of how the district's funds are held by the county trustee and accessed through its bank arrangements.
"Our bank accounts that we hold with Wilson Bank and Trust, they act like sweep accounts," Mister Sebastian said. "The trustee holds all the money there. And once we're ready to spend it, they do a wire transfer that day into our bank account with Wilson Bank and Trust." Board members asked staff to determine how much interest the district actually receives on funds held by the trustee and whether that interest would affect the need to draw on fund balance.
