SE Bluegrass News

Revenues Up, Finance Department Draws Praise

The city of Berea is taking in more revenue compared to this time last year, according to Finance Director Susan Meeks.

At Tuesday’s Berea City Council meeting, Meeks reported General Fund revenues are up approximately $500,000 as of December 31, which is the end of the city’s second fiscal quarter. That increase includes property taxes, franchise fees, occupational license fees (commonly known as payroll taxes), as well as insurance taxes.

“I’m pretty encouraged about our revenue levels exceeding the prior year,” Meeks said. Berea Municipal Utility revenues are also expected to be strong, since the third quarter began with a severe cold snap and a high demand for electricity.  

Among other projects the Finance Department recently completed was the reinvestment of funds in certificates of deposit (CDs). The department reinvested the money to take advantage of climbing interest rates.

“In January we cashed in $14.5 million dollars of city CDs. These CDs were only earning a quarter of a percent in annual interest. These funds were reinvested into new CDs just a few days later and are now earning between 3.49 percent and 3.55 percent in annually, depending on the length of maturity,” Meeks said.  

The move allows the city to better manage CD maturity rates in accordance with the city’s cash needs, but it also makes the maturity dates more uniform than in the past, Meeks said. “I think this puts us in a better position for a long-term investment plan.”

Berea City Councilman Jerry Little expressed his appreciation for the department’s money management efforts, which will allow the city to get better returns on the investment of taxpayer money.

“I want to thank you for getting our CDs lined out,” Little said to Meeks. “We’re talking about a lot of money, and I think you are 100 percent on the right track, and I really appreciate that.”

Following the report, Mayor Bruce Fraley went further to thank the Finance Department staff as well. “Thanks for the report, but also thanks to your staff. Make sure they know we appreciate the work they do every day. You’ve got a good team,” Fraley said.

Original source can be found here.