PINELLAS PLANNING COUNCIL AGENDA MEMORANDUM
AGENDA ITEM: V C. MEETING DATE: 20,2008 February
SUBJECT: Investment CouncilFunds of RECOMMENDATION: CouncilReviewAlternativeInvestment OptionsandProvideDirection
BACKGROUND As discussed with the Council over the past few monthsthe issuesaffectingthe State the Board of AdministrationLocal Government Pool dictateswe reevaluate Investment 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, the SunTrust, Regionsand Wachoviabanks.The bid requested CD interestratesfor the amounts $100,000 of for and $300,000 three(3) and 6 (six) monthterms.The bids for CD's whicharevalid until Februarv 22"d asfollows: are BB&T Principal Amount $100"000 $300,000 $100.000 $300.000
Number of Months Compounding lnterest earned over CD Term Frequency
Interest Rate
2.97o/o
3 3 6 6
2.97% 2.83% 2.83%
N/A N/A N/A N/A
2.97% 2.97% 2.83% 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 Amount Months 3 $100.000 J $300.000 $100.000 6 $300.000 6 * Interest Maturitv At SunTrust
Principal Amount Number of Months
Interest Rate 2.50% 2.50% 2.50% 2.50%
Compounding Interest earned Frequency over CD Term
N/A* N/A N/A N/A
s 625.00
$1.875.00
s 582.50 s1,747.50
$100,000 $300.000 $100.000
3
a J
Interest Rate 2.8t%
2.2l%o
$300.000
Regions Bank Principal Amount
6 6
2.69%
Compounding Interest earned Frequency over CD Term Daily s704.95 st.662.04 Daily Daily $r.354.04
2.09%
Dailv
$ 3 , 11 . 3 5 s
Number of Months
a J a J
InterestRate
Compounding Interest earned Frequency over CD Term
$100,000 $300,000 $100.000 $300.000
6
6
2.55APY 2.55 APY 2.50APY 2.50APY
Rates Assume No Compounding
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 FundA Dailv SBA SBA FundA 30 Dav
Theserates are subject to changedaily.
2.80%
3.760/o
437%
,SUB.IECT.' Investment CouncilFunds of Basedon the above information, staff recommendsthe Council considerthe following: A. B. C. Council exerciseits right to reject all bids for CD's and so advisethe respective banks; in Council leavethe currentbalanceof $52,776.81 Fund A of the SBA account; and 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.