PINELLAS PLANNING COUNCIL
AGENDA MEMORANDUM
AGENDA ITEM:
V C.
MEETING DATE: February 20,2008
SUBJECT:
Investment of Council Funds
RECOMMENDATION:
Council Review Alternative Investment Options and Provide Direction
BACKGROUND
As discussed with the Council over the past few months the issues affecting the State
Board of Administration Local Government
Investment Pool dictates we reevaluate
the
strategy
for the temporary
investment of Council funds.
To that end, Council staff, with input and review from Ken Burke, Claretha Harris and
Fred Dean of the Clerk's office, prepared and distributed a solicitation for bid on
Certificates of Deposit for public funds from several banks.
This solicitation for bid was sent to the following institutions: BB & T, Bank of America,
SunTrust, Regions and Wachovia banks. The bid requested
the CD interest rates for the
amounts of $100,000 and $300,000
for three (3) and 6 (six) month terms. The bids for
CD's which are valid until Februarv 22"d are as follows:
BB&T
Principal
Amount
Number of
Months
Interest Rate
Compounding
Frequency
lnterest earned
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 of Council Funds
Bank Of America
Principal
Amount
Number of
Months
Interest Rate
Compounding
Frequency
Interest earned
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 At Maturitv
SunTrust
Regions Bank
Principal
Amount
Number of
Months
Interest Rate
Compounding
Frequency
Interest earned
over CD Term
$100,000
a
J
2.55 APY
Rates Assume
No
Compounding
$300,000
a
J
2.55 APY
$100.000
6
2.50 APY
$300.000
6
2.50 APY
Of the bids received, BB&T at 2.97 and 2.83 percent would appear to provide the most
favorable rate of refurn.
In addition, we obtained the current rates of return on the Council's checking account at
Regio