So the City of Great Bend could have a little more to show for its investments, the City Council Monday night approved investing a portion of the city’s idle funds in certificates of deposit. The winning bid came from Sunflower Bank.
Councilman Chad Somers had requested that city staff look into investing the cash so that it can earn additional interest at a higher rate of return.
City Administrator Kendal Francis and City Clerk/Finance Director Shawna Schafer reviewed the city’s funds and discussed investment options with the city’s financial advisor Roger Edgar with George K. Baum & Co. They identified $3,000,000 to invest in 12-month and 24-month CDs.
The city solicited offer sheets to four local banking institutions and only received three bids, Schafer said. The high bidder was Sunflower Bank offering 12-month CD at 2.48 percent and 24-month CD at 2.51 percent.
The other two bidders were: Landmark National Bank offering a 12-month CD at 2.26 percent and a 24-month CD at 2.31 percent; and Farmers Bank & Trust offering a 12-month CD at 2.36 percent and a 24-month CD at 2.26 percent.
After questions from Somers, Schafer said the funds are coming from the $19 million the city has in working capital. Great Bend already has $12.5 million invested in various financial vehicles.
Schafer said they were advised to keep it simple. As long as the city’s principle and liquidity were protected, such additional investments would be fine.
Francis assured council members the money is safe to be invested long-term without fear of jeopardizing any projects or city functions.