Gray, Georgia Weather

Investing funds in CDs OK for city
by Debbie Lurie-Smith
Mar 28, 2013 | 1119 views | 0 0 comments | 2 2 recommendations | email to a friend | print
Gray’s mayor and City Council members held their monthly meeting of the city’s committees last week and discussed items for the next month’s council meeting.

Mayor Pro Tem and finance committee chairman Loretta Lipsey started the meeting with a report of Gray’s finances. She said 91 percent of the 2012 property taxes have been collected, and the Georgia Power franchise fee has been received.

Lipsey also said one of the city’s certificates of deposit for the water department was cashed. She said the legality of the city investing in CDs was questioned at last month’s meeting, and she put the question to the firm that handles Gray’s audits. Mark Hardison, of Clifton, Lipford, Hardison, and Parker, sent her a letter in response. After citing provisions under Georgia Law pertaining to investments, he stated that the law in no way impairs the power of local governments to hold funds in eligible depository institutions.

“Local governments are permitted to invest in certificates of deposit with banks. Please be aware that banks are required to either be fully covered by FDIC insurance or collateralized 110 percent of the investment,” Hardison said.

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