Q: At a recent city council meeting, Ward Four Councilman Michael Fridovich said the city could borrow money at a lower interest rate than it currently earned on its money. What does the city currently earn on its reserve fund?
A: Terry Gould, the Administrative Services Director for the city, told us the city’s invested funds (meaning Gulfport doesn’t use them for cash flow) total just over $2 million and earn an average of .10% interest.
“Remember,” she said, “that the city must comply with Florida Statutes (218.415) regarding its investments as well as the city's investment policy.”
This means the city makes the safety of the reserves a priority, followed by how easily the city can access the money. Only then can the city consider what the investments will yield.
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