CEPD adjusts finances to tap high interest rates
The Captiva Erosion Prevention District’s commission recently approved moving its operating funds into a higher yielding account at a different bank to take advantage of the increased interest rates.
At a special meeting on May 17, the commissioners voted 4-0 on a motion to move the general and capital funds for the CEPD from the Bank of the Islands to Fifth Third Bank. A minimum of $100,000 or three months of operating expenses will be maintained in the new accounts, which will be set up under a money market account that currently offers about 4.68% interest.
Staff was also directed to keep some funds in the old accounts for upcoming uncleared payments.
Prior to the vote, Executive Director Daniel Munt provided the commission with a brief overview of the CEPD’s finances. He reported that the general fund has a balance of about $742,740 and $30,000 in recurring monthly expenses. The capital fund has about $485,972 with $35,000 in monthly expenses.
Additional capital fund expenditures include $25,000 for uncleared reimbursement checks for the beach assessment, $70,000 for a beach survey and $75,000 for the coastal resiliency manager.
As for current investments, Munt explained that the CEPD has about $39,633 in a Fifth Third money market account at the 4.68%. In addition, it has four Treasury bills with Fifth Third that range in value from about $758,688 to $2.93 million and that range in maturity date from next April to March 2026.
He added that the weighed average yield on the T-bills is 4.3%.
Munt finally offered some comparative options for short-term investments for consideration.
During their discussion, the commissioners agreed with moving the monies into the higher yielding accounts, specifically the 4.68% money market option at Fifth Third. They also agreed on the minimum to be kept in the accounts. The idea of possibly investing the remaining fund balances also came up.
However, the commission decided to wait and regroup at the end of the fiscal year. It agreed that it could make better decisions on whether to invest in T-bills or notes based upon the new fall numbers.
Commissioner Rene Miville was absent for the special meeting.
To reach TIFFANY REPECKI / trepecki@breezenewspapers.com, please email