For now, the Oronogo Board of Aldermen will let money received from the sale of its municipal natural gas system sit in the bank drawing 5.09% interest.
Board members voted Monday to invest $1.5 million, including the gas sale proceeds, in a 6-month certificate of deposit offered by Guaranty Bank.
The city received $820,000 from the sale of the gas system to Spire, which closed June 22. That breaks down to $520,000 for the system itself and $300,000 as a reimbursement of the city’s expenses to expand the system since the sale was approved by voters (55-32) in November 2021.
The board decided to invest $750,000 from the sale plus $800,000 that is currently held in a money market fund.
At 5.09%, it’s calculated the city will make $37,701 when the CD matures.
Two other financial institutions seeking the deposit submitted proposals, but the board decided to invest with Guaranty, its bank of record.
Now that Spire operates the gas system, it will pay the city a franchise license fee.
Mayor Charles Wilkins said although there is no declared purpose for the gas system proceeds there are plenty of wishes for the money.
It’s not likely the city will need cash in the $1.5 million CD before it matures because the city has $2.7 million in other fund accounts.
Mayor Charles Wilkins said he has been told by Mark Lloyd that his work schedule has changed so he will no longer be able to attend board meetings.
Acceptance of Lloyd’s resignation from his 1st Ward seat was on the agenda but tabled because City Attorney Derek Snyder said the resignation must be in writing.
In other action, the board voted to purchase a new truck for the public works department. It is a 2024 Chevrolet 2500 HD double cab with short bed. The cost is $38,740 from Ed Morse Chevrolet, of California, Mo.