Cherokee Village council approves moving $300,000 into short-term CDs to boost yield

Cherokee Village’s City Council voted Aug. 13 to move $300,000 from the general fund reserve into short-term certificates of deposit aimed at improving interest earnings.

The motion, made by Councilmember Thompson and seconded by Councilmember Martin, split the funds into $150,000 for a three‑month CD and $150,000 for a six‑month CD in account 9706. The council approved the transfer on a roll-call vote with all members recorded as voting yes.

Finance staff had flagged a projected shortfall in interest revenue of roughly $17,000 amid lower market rates; current city accounts were earning about 2.3–2.42%. Miss Penny noted that First Community Bank had offered a CD rate “for 4.05,” and councilmembers said the move was intended to lock in higher yields while retaining short maturities.

Councilmembers discussed liquidity safeguards: the plan leaves staggered maturities so funds can be redeployed if rates change and the bank said the city could access funds within 72 hours if needed. The council recorded the transfer as a reserve-management decision rather than a long-term policy change.

The vote follows the finance presentation documenting stable general fund balances — both the city’s general checking and a reserve account were described as being above $500,000 — and a broader discussion of cash-management options.

The transfer is effective immediately; staff will report CD maturities and any changes to the council at a future meeting.