This accounting information was presented to the town’s council members and the public during the treasurer’s report presented at the Feb 6 council meeting.

According to treasurer Daley, it was necessary to open a new account at Mayor Davis’s direction since it was determined that the town did not have a WyoStar savings account for general fund monies.

The reason for this move was “to get more interest earned” on some of the “substantial amount in our Rawlins National Bank” (account), said Daley. The town’s general fund account apparently had over two and a half million dollars in it before these move decisions were made.

The general fund account still has “$1,200,000” in it, Daley said in after meeting comments. It was determined that these extra funds could be earning a better interest rate in a WyoSTAR account than keeping them in a locally owned bank. The town puts all its funds in RNB, said Daley.

According to a Wyoming state website, WyoSTAR is a Local Government Investment Pool (LGIP) that was established by the state legislature in 1987 to provide “an investment opportunity for its Participants” … (which) “Produce returns which exceed many other short-term investment programs.”

All government entities can participate in the WyoSTAR program, including counties, municipalities, school districts and others. The town now has several such accounts including ones for the water and sewer funds.

“The Wyoming state treasurer has established an investment pool in which all WyoSTAR monies are co-mingled for investment purposes.” … Interest is calculated and credited monthly. The pool does not have a guaranteed rate of return, and Participants expose their investments to market losses as well as gains. … One of the most important features is the accessibility to funds without a penalty.”

In addition to establishing this new account, treasurer Daley reported, “We also found that we had some (other) funds (in the general fund account) that should be allocated” to the water and sewer JPD “so we moved $387,000 into the (water) WyoSTAR account. We also had $192,000 for our sewer fund that we also moved to their WyoSTAR account.”

As a result of these decisions, over $1,500,000 in local funds were removed from a local bank and the county and invested in a state-run fund that invests in “top grade investments” to gain more interest. There was no discussion about the difference between the bank’s interest rate and the expected rate of return on the WyoSTAR investments.

The council had no comment about the mayor’s investment decision. Mayor Davis said, “I think this is fantastic, that the town is moving money into its WyoSTAR accounts. Especially starting up one for the town itself.”