By Debra J. Groom
The Oswego County Legislature OKed a measure Thursday that will allow the county treasurer to get a better interest rate when he invests county money.
Treasurer Fred Beardsley said the county already has an investment policy. But the governor recently signed a law that allows a change in how county invetments are made, so the Legislature on Thursday approved a new investment policy.
Beardsley said banks were losing money when there were large investments made at the banks. This is because the bank had to put up collaterol of its own money on large deposits.
For example, he said if the county invested $100,000, the bank has to put up the $100,000 plus an amount for hte interest.
“With interest rates so low, the banks are losing money on this,” Beardsley said. “So many banks are refusing to take these investments.”
The change OKed by the governor allows the county to invest the money, which then goes to a holding company and then is divvied out to banks in smaller increments.
For example, Beardsley said if the county invests $1 million, the money goes to the holding company and then is given to different banks in $250,000 increments, called insured cash sweeps.
“It provides us with a higher interest rate and the banks will take the investments,” Beardsley said.
He said the county has had trouble making much money on its investments since interest rates have plummeted.
He said interest rates now are about 0.05 of a percent to about 0.15 of a percent.
“Our income on inteerst used to be about $1 million a year,” he said. “This year, we’ll be lucky to see $75,000.”
The legislature also approved a measure to transfer cemetery accounts in the custody of the county treasurer to the cemetery owners.
Beardsley said when he became treasurer, he checked all the bank accounts and found two accounts that were more than 40 years old. They were from cemeteries founded back in the 1880s.
“The cemeteries went defunct at one time and the money was transferred over to us,” Beardsley said.
He researched the cemeteries and found both — one in Richland and one in Pennellville — still are being kept up. So the money in the accounts will be given to those in charge of upkeep at the cemeteries to help with the maintenance.
The total being transferred is about $900.
The legislature also approved:
• Supporting a statewide indigent defense legal system. County Administrator Philip Church said having the state run the system to provide lawyers to low-income defendants would save the county about $1.5 million.
• Supporting an alternative to Gov. Andrew Cuomo’s proposed tax freeze that would lead to the state taking over mandated programs such as Medicaid, indigent defense and special education preschool.