News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The Algood City Council has voted against participating in the Local Government Investment Pool.
Mayor Lisa Chapman-Fowler said diversifying accounts into local banks would be a better option.
“I’m going to follow through with a motion that we not participate in the pool,” Chapman-Fowler said. “But that we allow Mr. Morrison to invest city funds with First National Bank, Wilson Bank and First Freedom Bank.”
Council tabled a measure to join the state’s investment pool during their September meeting. At the time, City Administrator Keith Morrison said the state’s pool would provide a better interest rate.
“Currently with Wilson Bank, our return is like .55-percent. With First National Bank, which is where our checking is housed, it’s like a .03-percent,” Morrison said. “The investment pool peaked back in April. Their investments were returning an annualized interest rate of 2.41-percent. They have declined each month since then. They’re currently showing a return of 2.28-percent.”
Algood currently has about $5.6 million of its undesignated fund balance invested at First National Bank and Wilson Bank. The city will now move a portion of those funds to First Freedom Bank in Algood.
