Heard County moves emergency CD funds into general fund as revenues fall about 20%

Heard County commissioners voted Sept. 26 to transfer proceeds from an emergency certificate of deposit into the county's general fund rather than renewing the CD, citing an anticipated revenue shortfall.

Finance Director Felicia Adams told the board she solicited 12-month quotes and "The rates she received were as follows: BB&T - 0.22% - 12 month rate Certus - 0.25% - 12 month rate Regions - 0.05% - 12 month rate." Adams also noted that "the CD only earned $4500.00 in interest during the last year" and warned that early-withdrawal penalties could exceed the interest earned if the county needed the funds later.

Chairman Lee Boone said the county faces a drop in revenue and "revenues are down approximately 20% due to the decrease in LOST," and recommended placing the funds into the general fund so they would be available for operating needs. After discussion, the board voted 4–1 to deposit the money into the general fund; Commissioner Frank Crook made the motion, Commissioner Gwen Caldwell seconded it, and Commissioner Sandi Allen voted against the measure.

The board did not set a date to re-evaluate the decision if interest rates improve; officials said the money would remain in the general fund and be used only if needed to cover operating shortfalls.