Mountain Water District is seeking a higher interest rate for one of its bank accounts.
At a meeting Wednesday of the district’s board of commissioners, the board approved seeking quotes from local banks for its depreciation reserve account, which currently is on file at BB&T Bank. Mountain Water District Finance Administrator Carrie Hatfield told the board that the BB&T account currently has an interest rate of 0.1 percent.
Hatfield told the board that by moving the depreciation reserve account to People’s Bank, the district could receive an interest rate of 2 percent, resulting in approximately $1,400 more per month being generated by the interest on the account. Mountain Water District Accountant Mike Spears said the depreciation reserve account is fully-funded, but the interest could help the district in other areas or other accounts.
“That $1,400 a month might pay your bond reserve on the radio read (meters) or one of these others,” Spears said.
But, while the agenda item up for consideration was to move the account to People’s Bank from BB&T, the MWD board suggested seeking even more lucrative interest rates at other banks. The board ultimately approved allowing Hatfield to seek out the highest interest rate available at local area banks. The board did not approve moving the account to any specific bank during Wednesday’s meeting.