Somerset, Pennsylvania – The Somerset County Treasurer and county commissioners agreed to transfer $10 million to money market accounts pending resolution of a bank investment dispute.
Lawyers for both parties have confirmed that both parties have agreed to a “stop-around” measure to take advantage of current interest rates above 3%, as the matter will likely go to court.
Anthony Deluca
Even after Commissioners Gerald Walker, Colleen Dawson and Commissioner Pamela Toker Ikes voted on a resolution depositing $10 million in the Somerset Trust and another 60-day CD, their disagreements led to Anthony Treasury Secretary Deluca earlier this week refused to release the funds. At First National Bank he made $10 million.
CD and other savings rates have skyrocketed in recent months, creating short-term income-generating opportunities to invest money in counties with sufficient cash balances and unused American Rescue Plan dollars. .
DeLuca disputes the fact that the commissioner approved the remittance resolution based on the bank’s rate request after asking for a quote days earlier.
He also objected to the commissioner’s choice of Somerset-based Somerset Trust to be part of the investment, but the bank’s interest rates are about three-tenths those of Pittsburgh-based First National Bank. Percentage points were low.
Somerset County’s three commissioners, Republicans Walker and Dawson and Democrat Toker Ix, said it was their prerogative to make such a decision. All three supported the move to invest in the Somerset-based bank. They called themselves longtime community partners. The difference would be about $657 in interest income, they said.
DeLuca said First National Bank also has a Somerset branch that employs local residents, so it has local ties. He insists there should be a vote on the issue, but Somerset County Attorney Michael Barbera said that was not correct because he is not the county sheriff.
“County law clearly identifies county commissioners as responsible managers and administrators of their respective county’s financial affairs,” Barbera wrote in a letter to accounting attorney David Leake.
Both sides claim the county code is on their side, but that could be an issue the court system could consider at a later date.
By agreeing to temporarily deposit the funds in a money market account, “neither the Treasurer nor the Commission have waived their right to pursue legal action,” Leak said.
rare step
Somerset County is one of Pennsylvania’s 24 sixth-tier counties, and the treasurer from several other sixth-tier counties said this week that county commissioners will have the final vote on investments and other transactions. He said it was the county board’s role, not the council’s role.
Still, Indiana and Bedford county treasurers indicated they worked closely with county commissioners to research rates and the “best option” before the vote took place.
“After going to a public (commissioner’s) meeting, I presented them with their voting options, and they voted,” Indiana County Treasurer Kimberly McCullough said, adding she made the recommendation. “It turns out we’re all on the same page about the best options.”
Bedford County Treasurer Melissa Cottle said Bedford County is relying on New York-based investment firm Three+One to narrow down the list of recommended routes the county can take. I was. As the treasurer, she will have the opportunity to meet with the commissioner and give her opinion in advance while the commissioner takes action on the final investment decision, she said.
For Leake, there are too many “gray areas” to make sure the process is right, even if it’s a popular route statewide. He believes DeLuca’s challenge will likely set a precedent.
Citing the state’s county code, he said, when it comes to depositing county funds, except noting that it should be done with the county’s “county commissioner with the treasurer.” He said the law didn’t go into too much detail.
“The law is clear, it’s their position to support the commissioners, and our position is that it’s not clear,” Leak said. This may be the first time.”
As of Friday, neither party has filed a legal challenge in court on the matter.
