The Bella Vista Municipal Depository Board met Monday to discuss the city's finances.
The board, consisting of Mayor Peter Christie, finance director Cary Elsten and City Council member John Flynn, is responsible for where on-hand cash is placed, staff attorney Jason Kelley said.
Elsten said the city has an average monthly surplus of $41,000, and a cash balance of roughly $1.9 million.
"We definitely do not need to hold this much money," she said. She suggested the city invest $500,000, which would give the city some income on otherwise-idle money.
The board agreed to invest $247,000 with SLMA Bank at 1.8 percent and the same amount with American Express Bank at 2.2 percent, to mature April 27, 2020, and May 3, 2021, respectively. These investments are FDIC-insured. The proposed investments are made through Crews and Associates.
The board also agreed to consider removing funds from an account with Arvest Wealth Management, valued at $761,702.91 as of its March statement, because the fees on it exceed the account's income.
"We're not making money on it, we're losing," Christie said.
Elsten was authorized to get in touch with Crews and Associates and discuss what kind of options the city might have with this money.
The board also issued after-the-fact approval of an additional CD investment purchased by Elsten. This particular investment is a five-year CD with Everbank that matures April 14, 2022, with a yield of 2.25 percent.
Christie said he was pleased with the city's finances.
"We are healthy, which is good," he said.
General News on 05/03/2017