The town of Bayfield will move about $1 million to $2 million from its investment account with the Colorado Local Government Liquid Asset Trust to the Pine River Valley Bank to receive higher interest rates on certificates of deposit and to boost the local economy.
Because of the current economic climate, the Bayfield Town Board has been looking at different places to keep some of the town's funds. That included looking to local banks for higher CD interest rates, Town Manager Justin Clifton said. The money comes from local fees.
Board members felt it was important also to find ways to stimulate the local economy, Mayor Rick Smith said.
After choosing Pine River Valley Bank, board members voted unanimously at their meeting Tuesday night to move the money. Clifton said finding a bank that insures the more than 2 percent return on the town's investments was an easy choice.
"(It) was a no brainer," he said.
The town uses the Colorado trust based in Denver for its investments primarily because it always has had a high rate of return, Clifton said. According to its Web site, the trust is an organization that provides
services to "1,200 local government entities ... and is designed to provide local governments with a convenient method for investing in short-term investments." The trust's return is about .2 percent.
The city of Durango also keeps its money at local financial institutions, something it has been doing for years, to support the area's economy, Finance Director Julie Brown said.
"But, we do have money at different locations (like COLOTRUST)," she said.