Dunkirk shortens up term of CD

DUNKIRK - With a major wastewater improvement project looming in the near future, city council members here voted Thursday afternoon not to renew a two-year certificate of deposit for more than $150,000 in sewer department funds, but to purchase a six-month CD instead.

Clerk-treasurer Jane Kesler said Pacesetter Bank notified her recently that a two-year CD there must be renewed within the next 10 days.

Council members noted that with the wastewater improvements pending, they would rather purchase a CD for a shorter period of time, even though the interest rate would be lower.

Council members said that the wastewater funds might be needed sooner to help fund the proposed sewage treatment plant improvement project.

At Monday's council session, plans were discussed to apply for an Indiana Office of Community and Rural Affairs grant totaling approximately $1 million to help fund wastewater treatment plant improvements, estimated to total $1.7 million.

Council members said they didn't want to tie up $187,359 in CD funds for two years in case they were needed for match money for the project. Members also didn't want to pay a penalty for withdrawing funds early from a two-year CD.

Kesler said she had sought quotes from Pacesetter and First Financial Bank, both with offices in Dunkirk, to obtain the best interest rate for a six-month CD. Pacesetter's quote was .7 percent, while the First Financial rate was .5 percent.

Both quoted a rate of .8 percent for a nine-month CD.

However, council members agreed they would rather have the funds tied up for only six months.

Approximately $174,100 of the $187,359 total is wastewater treatment plant utility funds. The remaining $13,250 is designated for the police pension fund.

Only council members Judy Garr, Craig Faulkner and Tom Johnson were present for the Thursday afternoon meeting. All three approved acquiring the Pacesetter CD at the .7 percent interest rate.

In other action Thursday, Garr introduced a proposal from the Dunkirk Beautification Committee to apply for a Dunkirk Foundation grant through the Dr. Donald Johnson Fund. If approved, this grant will be used for fencing and planting new trees to add shade to Webster-Depot Park, site of the committee's summer outdoor concert series. This motion was also approved unanimously.[[In-content Ad]]