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Minutes for the Depository Board meeting on July 21, 2009.
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Board members Mayor Perrin, chair, City Clerk Donna Jackson and City Collector Becky Sharp were in attendance. Also in attendance were Finance Director Jim Barksdale and Assistant City Accountant Jim Eagan.
Mr. Barksdale discussed taking bids on a CD rates on a weekly basis. Chairman Perrin recommended meeting on a quarterly basis so the board would know how much money is being invested and where. He noted the City has $6.1 million to $6.2 million in excess reserves, but that floats. He also stated he would like the board to be given cash projections for at least three months in the future.
Discussion was then held regarding how far in advance the cash projections provided to the board should be. Mr. Eagan noted projecting it for more than three months might leave out some information, such as state turn back money and the privilege license collection which mostly takes place in January and February. It was decided to have a minimum 90-day cash projection for the board.
Discussion was then held regarding how much money to invest in CDs. Mr. Barksdale noted the FDIC increased the amount in which they will insurance to $250,000 until 2013. He suggested investing up to $1 million in $250,000 increments. He noted Heritage Bank bid the highest rate at 1.7% for 12-months. Chairman Perrin suggested having the City’s assets that banks have to pledge should also be given out in a report for the board meetings. Mr. Barksdale stated the City has $20 million in the bank, with $14 million in required reserves and $6 million in excess reserves. He questioned whether the City would need to use any of the $6 million in excess reserves in the next 12 months. Chairman Perrin answered no, that he cannot foresee any reason to use the excess reserves. He then asked if the bids included the investments being penalty-free. Mr. Barksdale answered yes. He explained bidding out the CD rates every week would give the...
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