PINELLAS PLANNING COUNCIL
AGENDA MEMORANDUM
AGENDA ITEM: V C. MEETING DATE: February20,2008
SUBJECT:
Investment CouncilFunds
of
RECOMMENDATION:
OptionsandProvideDirection
CouncilReviewAlternativeInvestment
BACKGROUND
As discussedwith the Council over the past few monthsthe issuesaffectingthe State
Board of AdministrationLocal Government InvestmentPool dictateswe reevaluatethe
strategy the temporary
for of
investment Councilfunds.
To that end, Council staff, with input and review from Ken Burke, ClarethaHarris and
Fred Dean of the Clerk's office, preparedand distributed a solicitation for bid on
Certificates Depositfor public fundsfrom several
of banks.
This solicitationfor bid was sentto the following institutions: BB & T, Bank of America,
SunTrust, Regionsand Wachoviabanks.The bid requested CD interestratesfor the
the
amounts $100,000
of and $300,000 three(3) and 6 (six) monthterms.The bids for
for
CD's whicharevalid until Februarv are
22"d asfollows:
BB&T
Principal Number of Compounding lnterest earned
Amount Months Rate
Interest Frequency over CD Term
$100"000 3 2.97o/o N/A 2.97%
$300,000 3 2.97% N/A 2.97%
$100.000 6 2.83% N/A 2.83%
$300.000 6 2.83% N/A 2.83%
PINELLAS PLANNING COANCIL ACTION:
COUNTYWIDE PLANNING AUTHORITY ACTION:
RE CD RATES.doc
SUB.IECZ; Investment CouncilFunds
of
Bank Of America
Principal Number of Compounding Interest earned
Amount Months Rate
Interest Frequency over CD Term
$100.000 3 2.50% N/A* s 625.00
$300.000 J 2.50% N/A $1.875.00
$100.000 6 2.50% N/A s 582.50
$300.000 6 2.50% N/A s1,747.50
* Interest Maturitv
At
SunTrust
Principal Number of Compounding Interest earned
Amount Months Rate
Interest Frequency over CD Term
$100,000 3 2.8t% Daily s704.95
$300.000 a
J 2.2l%o Daily st.662.04
$100.000 6 2.69% Daily $r.354.04
$300.000 6 2.09% Dailv $ 3 , 11 . 3 5
s
Regions Bank
Principal Number of Compounding Interest earned
Amount Months InterestRate Frequency over CD Term
$100,000 a
J 2.55APY RatesAssume
$300,000 a
J 2.55APY No
$100.000 6 2.50APY Compounding
$300.000 6 2.50APY
Of the bids received,BB&T at 2.97 and 2.83 percentwould appearto provide the most
favorable rate of refurn.
In addition, we obtained the current rates of return on the Council's checking account at
Regions Bank and for the Fund A investment pool account with the State Board of
Administration. On February 12, 2008, the same date bids were required to be received,
theseinterestrateswere:
Reeions
Checkine 2.80%
SBA FundA Dailv 3.760/o
SBA FundA 30 Dav 437%
Theserates are subject to changedaily.
,SUB.IECT.' Investment CouncilFunds
of
Basedon the above information, staff recommendsthe Council considerthe following:
A. Council exerciseits right to reject all bids for CD's and so advisethe respective
banks;
B. Council leavethe currentbalanceof $52,776.81 Fund A of the SBA account;
in
and
C. Council consider redepositing $300,000 from the Regions checking account
into Fund A of the SBA account,subjectto confirmation that such new deposits
to Fund A are and will remain available upon demand and that no portion of
thesenewly depositedfunds are to be capturedor invested in Fund B.