New Law Could Cost Counties More Money
July 28, 2016 at 4:25 p.m.
New Law Could Cost Counties More Money
By Daniel [email protected]
Local officials say this could cost counties more money.
The fund currently has $250 million in it and is for the purpose of providing insurance to public funds if a bank fails.
Kosciusko County Treasurer Sue Ann Mitchell said that the new legislation dictates how much deposits from any government entity would have to be collateralized.
As the current law stands today after legislation passed last year, banks will be graded on three different levels with the lowest grade requiring 100 percent collateralization by that bank. If a bank has a rating of 0 to 20 they must collateralize at 100 percent; 21 to 40, 50 percent; and 41 and above, zero percent.
The rating system is being administered by Highline Financial and they charge to view their reports.
Mitchell said it could cost counties even more to keep their money in banks if the banks they use are required to provide more collateral.
Mitchell said the state is laying claim to the money in the Public Deposit Insurance Fund.
The State of Indiana would like to lay claim to $200 million of the money being held.
The proposed requirement would then be that 100 percent of public funds would have to be collateralized by the lowest rated banks.
Mitchell gave the commissioners a report of investments by the county in 2010.
Mitchell said the county took in $173,000 in interest in 2010 which she said was "a far cry from years past."
"Before our rates would be 2.5 and 5.0 and now they are .25 and .50," said Mitchell.
Mitchell noted that in June rates on CDs fell off.
The commissioners adopted an investment policy for 2011 and also voted Truex as the president of the board of finance for the county this year.
It's Truex third straight year in that position.
In other business, Michael Dewalt was named to the Lakeland Regional Sewer District.
County administrator Ron Robinson said the Milford Redevelopment Commission has asked that CR 1300N be extended from Old 15 to Ind. 15.
The commissioners told Robinson to look into a feasibility study for that.
The commissioners next meeting will be at 9 a.m. Feb. 1 in the old courtroom at the Kosciusko County Courthouse.[[In-content Ad]]
Local officials say this could cost counties more money.
The fund currently has $250 million in it and is for the purpose of providing insurance to public funds if a bank fails.
Kosciusko County Treasurer Sue Ann Mitchell said that the new legislation dictates how much deposits from any government entity would have to be collateralized.
As the current law stands today after legislation passed last year, banks will be graded on three different levels with the lowest grade requiring 100 percent collateralization by that bank. If a bank has a rating of 0 to 20 they must collateralize at 100 percent; 21 to 40, 50 percent; and 41 and above, zero percent.
The rating system is being administered by Highline Financial and they charge to view their reports.
Mitchell said it could cost counties even more to keep their money in banks if the banks they use are required to provide more collateral.
Mitchell said the state is laying claim to the money in the Public Deposit Insurance Fund.
The State of Indiana would like to lay claim to $200 million of the money being held.
The proposed requirement would then be that 100 percent of public funds would have to be collateralized by the lowest rated banks.
Mitchell gave the commissioners a report of investments by the county in 2010.
Mitchell said the county took in $173,000 in interest in 2010 which she said was "a far cry from years past."
"Before our rates would be 2.5 and 5.0 and now they are .25 and .50," said Mitchell.
Mitchell noted that in June rates on CDs fell off.
The commissioners adopted an investment policy for 2011 and also voted Truex as the president of the board of finance for the county this year.
It's Truex third straight year in that position.
In other business, Michael Dewalt was named to the Lakeland Regional Sewer District.
County administrator Ron Robinson said the Milford Redevelopment Commission has asked that CR 1300N be extended from Old 15 to Ind. 15.
The commissioners told Robinson to look into a feasibility study for that.
The commissioners next meeting will be at 9 a.m. Feb. 1 in the old courtroom at the Kosciusko County Courthouse.[[In-content Ad]]
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