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Commission approves split CD investment after staff reports two bids
Summary
Finance staff presented two bids for a 12‑month CD: UMB offered 3.85% on $2M and Union State Bank offered 3.967% on $250,000. Commissioners authorized locking $250,000 at Union State Bank and pursuing the remainder with UMB pending advice from city financial staff.
Finance manager (identified in discussion) told commissioners that the city solicited bids for a 12‑month certificate of deposit using $2,000,000 from the wastewater fund. UMB bid to hold the full $2,000,000 at 3.85%; Union State Bank bid $250,000 at roughly 3.967% (their capacity to accept $2,000,000 was limited). Commissioners debated whether to split funds to capture higher short‑term yield while honoring the larger UMB bid.
The commission voted to proceed with a split: $250,000 to Union State Bank and the remaining $1.75 million (or $2 million, subject to confirmation by city financial advisers) to UMB at the quoted 3.85% rate. The motion included a staff authorization contingency to finalize amounts after confirming fund availability tied to wastewater payments.
