Villa Park : Higher Rates Cited in Fund Transfer

City Council members this week voted to transfer about $584,000 of the city’s reserve funds in a state account to a county account for more interest earnings.

The city currently has $834,000 in a state-run investment fund, the Local Agency Investment Fund, which gives the city a 4.4% interest earning annually. When city officials transfer the money to a county-run investment fund, Villa Park will receive 7.8% interest annually.

The city has $517,000 in the county account and with the additional money, city officials anticipate making about $5,000 in interest by June.

“We have no intention of risking any of this city’s modest reserve account, nor do we have the resources to bring aboard anyone to make such investments,” Councilman Bob Patchin said. “It takes time and skill to manage money well and we have neither at this time.”

He said the money in the state account will be transferred to the county account within days and that all the interest earned will go into the city’s general fund to pay for street improvements and other similar projects.

City officials said about $250,000 has to stay in the state investment fund because that money can be withdrawn at any time. Money in the county account would take seven to 30 days to be withdrawn.