Georgetown council approves $2.2 million reinvestment of matured funds

Georgetown’s City Council on Nov. 24 approved a municipal order to reinvest about $2.2 million of matured investments held at Stockyards Bank into taxable municipal and agency securities with 2–7 year maturities. Finance staff said the funds do not need to remain liquid and that longer maturities would yield modestly higher returns than short-term U.S. Treasuries.

Stacy, the city’s finance staffer, told the council the matured balance was roughly $2.2 million and the bank proposed placing that money in $250,000 tranches of taxable municipal bonds and government-sponsored agency securities under KRS 66.48. “This money, we don't need it to be liquid at this time,” she said, noting the proposal came through the finance committee and the investments fall within legal options available to the city.

Owen Armand, an account manager with Stockyards Bank, described the recommended securities as “government-sponsored entities, agencies like Federal Home Loan Bank” that offer incremental yield versus Treasuries while remaining highly liquid in secondary markets. He explained callable structures to the council, noting callable agency bonds can be redeemed early by the issuer and that selling a bond before maturity may forfeit accrued interest.

Council members asked about liquidity and minimum fund-balance policy. Finance staff said the investment would not affect the city’s 15% minimum balance policy and that some of the general fund balance is already held at the Stockyards account. After a motion, the council voted in favor; the clerk recorded the motion as passed and the municipal order will be implemented by staff under existing investment authority and applicable statutes.