BROOKVILLE — Brookville Borough Manager Dana Rooney discussed the low interest rates the borough is currently seeing for its bank accounts, and suggested putting some money into CDs for a guaranteed interest rate.
Rooney requested approval for several cash transfers because of the current low interest rates.
“It’s no secret, interest rates are pretty much at an all time low. Some of our S&T accounts have low interest rates, and probably in the history of our investments here, our S&T accounts are outweighing our PLGIT accounts,” Rooney said.
The borough was typically putting their money into PLGIT to get more interest, but now S&T is the higher of the two. She said the S&T accounts currently have an interest rate of 0.2 percent and PLGIT has an interest rate of 0.04 percent.
“We’re not going to get rich on interest, but I’m trying. I’m trying to be smart with the town’s money,” Rooney said.
She also said the small funds do not see those interest rates, so she requested moving some of this money into a CD, which will likely have an interest rate of about 0.2 percent. She requested moving $45,000 from the PLGIT reserve account into a CD at the highest bidding interest rate from the three local banks.
Rooney also requested moving $55,000 of the PLGIT capital projects money into a CD.
She plans to get quotes for six months and 12 months. According to Rooney, PLGIT rates change every week, but they are not changing in the “correct direction” at this time, and they are not changing significantly.
Financial advisors do not see a foreseeable future or a big change in interest rates. She said PLGIT has been around this interest rate for about six months. Around this time last year it was around 1 percent, which was good at the time.