(KLZA)-- The Falls City Council approved a resolution Tuesday evening to enter the Declaration of Trust and become a participant of the Nebraska Class Trust.
The organization allows local government entities to invest surplus or excess funds in cooperation with other governmental entities.
City Administrator Anthony Nussbaum said the City could earn higher interest rates on this type of investment than what local banks can offer currently.
Nussbaum said the City still has the option to invest locally, and decisions on where to invest the money would come before the Council.
Ward IV Council member Derek Leyden, who works for F&M Bank, said that he would abstain from the vote on the resolution because of his occupation.
Although Leyden abstained, Leyden said currently local banks cannot match the interest rate being offered by the Trust. Leyden cautioned the Council about not investing locally. Leyden said municipal deposits are a big part of the banking industry, allowing the banks to lend money to those who need it. He noted that it is local banks that step up when local committees and organizations need money such and F & M Field, Morehead Field and Vandeberg Field at the Fiedler Sports complex that were supported by local banks. He said EDGE and the Chamber receive a lot of support from local banks.
Mayor Mark Harkendorff also suggested investments remain local since its local banks that lend money to people. He said that is more important than a little more interest.
The vote to approve the resolution was 6 in favor, with Leyden abstaining and Council member Jim Wisdom casting a nay vote.
© Many Signals Communications
MOST VIEWED STORIES
Atchison apt fire claim's toddler's life, injures others
Four arrested for illegal activity on Kickapoo Reservation
Two search warrants, two Horton homes, two arrests
Document forgery alleged in ATCO's Walnut Township
Two Brown Co officers honored for their bravery
Whiting woman pleads to theft of fire dept. funds
Wetmore man arrested on child sex-related charge
Flags across KS to fly half-staff Sunday
Severe storms reported Tuesday in NE KS
Atchison man nabbed for neighbor's 4 wheeler theft
Winning lottery ticket sold in Falls City about to expire
Two men arrested in Jackson Co for distribute of meth
Walnut Township Treasurer removed; votes unofficial until canvass
Tornado damage surveyed in NE KS
TX man to stand trial on charges in fatal Jackson Co crash
Local judge files for re-election
Trail rides ending at Indian Cave State Park
LATEST STORIES
Sheriff: phone call promises of free money is a scam
Moran works for Mayetta veteran's recognition
Atchison Commission to focus on manager vacancy Thursday
Falls city Council hears updates on grant programs
Work underway to draft new Missouri River management plan
Resurfacing project begins on K-9 in Marshall Co
Doniphan Co Commissioner files for re-election
Seneca Chamber receives Main Street designation
Walnut Township Treasurer removed; votes unofficial until canvass