Town Investments and Banking

Context

How the Town invests its cash reserves (one savings account alone held about $5 million in June). Investment earnings are a major revenue source ($150,000 budgeted for FYE 2027). Since spring Brock Hall and Finance Officer Linda Hunt have moved idle checking balances into higher-yield accounts. John Byrum prefers guaranteed investments (money markets, CDs) over market risk. Banks in use: First National Bank (primary), Home Trust Bank, Encore Bank, and the North Carolina Capital Management Trust, which Council heard about from Terra Greene on July 13.

Status

On September 22 Council directed Hall and Hunt to close the Encore Bank accounts (about $240,000 at 2.7%, local branch closed) and move them to First National Bank's 3.6% money market. A CD maturing September 4 (about $7,448 interest) was renewed for six months at 3.75%. Interest income was over $50,000 by the end of September.

Log

• 2026-09-22 - Town Council Vision Session - Council directed closing the Encore Bank accounts and moving them to First National Bank; no formal motion.
• 2026-07-13 - Town Council - NC Capital Management Trust presentation (one-day yield 3.51%, 0.205% fee); no action.
• 2026-06-01 - Town Council - $1,000,000 moved into the highest-yield savings account (about $5,000,000), bank added 0.8%; meetings with banks completed.
• 2026-04-23 - Town Council Budget Work Session - Review of seven accounts; Council unanimously backed moving at least $1 million to higher-yield money markets and opening new banking relationships.
• 2026-03-19 - Town Council Budget Work Session - Byrum asked for a bank-by-bank balance and maturity overview and favored guaranteed investments.