Approval of Township Fund Investment Strategy by the Board of Supervisors
[July 24, 2923] – At its regular meeting held on July 10th, 2023, the Board of Supervisors granted its approval for the implementation of a comprehensive fund investment strategy. This strategy, proposed by Township Manager Erica Batdorf aims to reinvest funds recently matured from Certificates of Deposit (CDs) and bolster the Open Space Funds by adding them to CDs. The decision was made after careful consideration of market conditions, with the Federal Rate significantly increasing in favor of the Township.
The Township’s financial team, in collaboration with the Open Space Review Board, conducted a thorough assessment of available investment opportunities. As a result, a one-year CD with an attractive return rate of 5.35% was identified, a considerable improvement over the previous year’s rate of 1.5%. The Township intends to reinvest funds from matured six-month CDs held at PLGIT and Raymond James Investments with Fulton Bank. Additionally, they plan to move $2,250,000 million from the Open Space Money Market Account with Fulton Bank to CDs within PLGIT.
Township Manager Batdorf emphasized that all projects and ongoing operations have been carefully evaluated to ensure a smooth cash flow for the next 12 months. The investment strategy aims to optimize returns while maintaining financial stability for the Township’s various funds, including Open Space, Act 209, and Real Estate Funds.
Township Manager Batdorf noted that approximately $6 million of the total $7.2 million Open Space Fund would be invested in CDs. This decision is expected to bolster the fund further, with an estimated additional revenue of $300,000 to $350,000 from EIT Taxes anticipated before the year’s end. Furthermore, the 2024 budget is projected to exhibit an increase of $800,000 or more in the Open Space Fund.
The Board of Supervisors unanimously voted in favor of the investment strategy. Supervisor Rebekah Elliott made a motion to authorize the transfer of $2,250,000 from the Fulton Bank Open Space Money Market account to one-year CDs at PLGIT, in addition to reinvesting the Township reserves with ACT 209, Open Space, and Real Estate Tax held at PLGIT into one-year CDs. Supervisor Bill Soumis seconded the motion, and it was unanimously carried.
This strategic decision reflects the Township’s commitment to responsible financial management and seeks to maximize returns on investments, ensuring the long-term financial stability of the community. By capitalizing on favorable market conditions and prudent investment choices, the Township is poised to continue its tradition of excellence in serving its residents and enhancing the local environment.
