The policy regarding the Scottville’s investments was updated in a move that will allow for more financial growth and stability in the future, according to City Manager Jimmy Newkirk.
During Monday’s meeting of the city commisison, Newkirk said the plan to update the investment policy was in the works since before he started in the position in May 2021. But commissioners wanted to wait until a permanent city manager was in place before officially moving forward with it.
“This was discussed and put on hold until (I) was hired,” Newkirk said. “The previous investment policy was drafted in 2006, and over the years (it) fell out of compliance with state regulations. So we put together a trimmed-down investment policy that wasn’t as cumbersome as what we had,” Newkirk said.
Newkirk said the policy doesn’t signal any immediate alterations to Scottville’s investments. By bringing the city into compliance with state law, it makes it possible for future changes to be made.
“Currently, the money isn’t really invested,” Newkirk said. “It’s deposited. … It’s about $200,000 that’s just sitting idle right now.”
Newkirk said West Shore Bank is holding the funds, but the city is not paying the bank to “do anything with it” that would result in growth or allow the funds to earn interest.
That’s going to change, but the details of how that will happen still have to be determined, he said.
“I’m sure we’ll do something with it — I can guarantee you we will. But that’s down the road,” he said. “We’re not going to sit on it. We’re going to move pretty quickly, and now we can because we’re in compliance with the state.
“If you’re not in compliance, you can’t touch it. You can’t do anything with it, even though it’s yours.”
SEATS FILLED
Commissioners approved one reappointment to the Downtown Development Authority and two new appointments to city’s parks and recreation board.
Joe Knowles, chair of the Downtown Development Authority, was reappointed for another term, but two other vacancies remain on that board, Newkirk said.
