The Waveland Board of Mayor and Aldermen on Wednesday approved a secure investment of $2.5 million with Trinity Capitol Investments.
At the May 22 meeting, the board heard from Trinity Chief Investment Officer Jeff Wilson, who said that the firm handles about $465 million in public entity funds and helps them "earn the highest interest rate they can."
"The money you invest is completely liquid and you can have it back at any time," Wilson said at the May 22 meeting.
Trinity provides a contract and there is also a third-party, state-approved custodian, he said. All investments also adhere to Mississippi statute 21-33-323 and 31-19-5.
For investments, Trinity utilizes a "mixture of Treasuries, GNMAs, Mississippi taxable municipal bonds, and other allowable investments," the proposal states.
There is about $1.6 million in the old depository account, which is on hold for FEMA, Waveland City Clerk Mickey Lagasse said. The city of Waveland savings account has about $220,000 and Lagasse said he proposed taking about $700,000 out of the city's depository account, which has a fund balance of about $3.9 million.
With an investment of $2.5 million, Trinity's contract fee is $6,250, Lagasse said.
Alderman Shane LaFontaine said Wednesday that, at the May meeting, he asked that Mayor Mike Smith take a look at local banks to compare interest rates.
Smith said he visited banks in Waveland and learned that Keesler Federal Credit Union does not offer that type of investment. Smith said that the First Bank offers 1.9 percent on a longterm CD and the city would be penalized for early withdrawal.
Smith that Hancock Bank offers 2.3 percent on a short-term nine-or 12-month CD with no early withdrawal penalty.
"None of the banks can do what Capitol can do," Lagasse said.
Smith said that even if Trinity's fees were removed, "we'd be still above, even though their fees would be attached to it, and they were still above what the banks could do."
LaFontaine asked if Trinity offered security.
Lagasse said, "yes."
City Comptroller Ron Duckworth said the city is "not considering investing in anything that is not secured by the U.S. government."
"It's a continuous source of cash-flow and earnings and it's safe," Duckworth said.
The board unanimously approved the investment.
Lagasse said Thursday that, depending on investments, the city will be earning a variable of 2.5 to 3.2 percent interest rate.
In other action:
The board honored city attorney Rachel Yaborough. Last month, she announced her resignation from the city in order to spend more time with family. Smith said that Wednesday would be the last meeting that Yarborough presided over.
"She's been a great attorney, a great friend to the city, and we're certainly going to miss her at every meeting that we have," Smith said.
Yarborough served as city attorney for more than five years.
The board discussed hosting the event "Food Truck Friday," on a trial basis, on Aug. 9 and Oct. 11 from 5 to 8 p.m. at the end of Coleman Avenue on city property. Smith said the vendors would need to obtain a transient or vendor license. He added that he's been in contact with vendors who are in good standing with the Mississippi State Department of Health.
The board recognized Terrance Hess as the city's Employee of the Month for May.
The board discussed exploring the possibility of establishing a special leisure and recreation district and go-cup ordinance on Coleman Avenue, but took no official action.
The board approved the Waveland Police Department's Neighborhood Watch kickoff meeting scheduled for June 26 at 6:30 p.m. at the Waveland Police Department, located at 1602 McLaurin St.
The board approved the FY 2021 Tidelands request application to the Mississippi Department of Marine Resources. The projects include: Priority 1: Complete boat launch and marina design at $250,000; Priority 2: Pagodas and showers in the amount of $240,000; and Priority 3: Parking bay for beach access in the amount of $250,000.
The next meeting is scheduled for July 2 at 6:30 p.m.