JOHN COFFELTEditor

The policy that the county uses to regulate investments of its free cash may not have ever been approved by the County Commission.

Mayor Judd Matheny called an Investment Committee meeting on March 11, in part, to address an official policy for those investments and to select a contract for the county’s banking services, which the prior contract with First Bank had expired and was in its grace period.

“The first reference was Sept. 12, 2017, the policy was removed from the (County Commission Meeting) agenda,” Matheny said. “It doesn’t look like anything else happened, that I could find, between … 2017 and late 2022.

Coffee County Trustee John Marchesoni said that he had written the document in 2017, and brought it before the Investment Committee several times. At the Dec. 14, 2022 Investment Committee Meeting approved the policy. The Legislative Committee amended the policy to earmark interest funds into the general fund with the exception of the Library Fund and the Drug Fund which goes back to those source funds.

Marchesoni requested last minute that the amended policy be pulled from the Jan. 10, 2023 full commission agenda.

Citing T.C.A. code and Comptroller guidelines, Matheny said that since the county is operating without an approved policy the Investment Committee or the full commission would need to approve any investments made, until the full body tasked the Investment Committee with the reasonability.

Previously the Trustee alone had made those investments. Marchesoni balked at the suggestion, saying that the delay created by calling full meetings would cost the county money.

“A lot of times you have to look at the market,” he said. “You have to be active with market conditions and market times. You can’t wait 30 days to make a decision on an investment.”

He suggested sardonically that the members could meet here “every Tuesday morning at 7:30 a.m. and discuss the market and what we should be doing.”

Matheny said that state law is very specific concerning the matter. Pressing on, Matheny said that he intended to get the county in compliance with state law.

“We’re going to create an investment policy with this committee, we’re going to pass it and it’s either going to say the full committee is going to approve investments or the investment committee is going to approve investments,” he said.

Until that time the committee will meet to approve investments and then the full commission, Matheny pledged.

“Do we have one signature that moves $5 million or do we have four signatures that move it? Is there advance notice given to the banks before we move it? We don’t have a policy. We have to have a policy,” Matheny said.

According to a report distributed at the meeting, the county has $30 million invested, $5 million at local banks and $25 million out of state.

Those institutions include Coffee County Bank, Trader’s Bank, First Vision Bank and Multi-Bank Securities Interest rates center from around 5.222% to 5.5%. Dates listed for maturity are mostly listed as falling mostly between May and August, with two falling in the summer months.

Marchesoni, however, said after the meeting that he feels he has been operating in compliance within Tennessee codes.

In December 2022 Marchesoni took a Non-Corporate Resolution Form to invest with Multi-Bank to the investment committee where it received a 4-0 vote.

“We went to those committees for approval and received that approval. I don’t know where we’re not following procedure,” Marchesoni said.

At the Legislative Committee level during the January 2023, Commissioner Lynn Sebourn suggested coordination with Budget Director to clarify and assure fund types and responsibilities for funds. The discussion about a “Non-Corporate Resolution Form” was decided by the committee with County Attorney Ed North in agreement that no approval was necessary for this form.

Marchesoni feels that the voters have entrusted him with the responsibility of being mindful of the market to know what the best investment and the best term will be.

“We try to maximize our investments so the interest we earn can go back into the general fund an maintain a lower tax rate,” Marchesoni said.

Relevant TCA code 5-8-301 stipulates that any investments made to pursuant to subdivision (5) and (6), bonds of the state or nonconvertible debt securities (neither are used as investments) shall be approved by the county commission, however, the next provision states, “Counties are authorized to invest idle funds in … (b)onds, notes or Treasury bills of the United States.”

Marchesoni reads that section as implicit authorization to make investments separate from the requirements mandated in the proceeding section.

“That’s exactly what I asked for, that’s exactly what we did,” Marchesoni said.

Last year the county’s income revenues are on track to be about $3.6 million.

First Bank awarded banking contract

Manchester’s First Bank was awarded the contract to provide bank services to the county. Coffee County Bank and US Bank were the three to offer bids for the project.

First Bank has been providing banking services for the county for about 30 years. Currently, however, the county’s contract with First Bank had expired March 2 and the county is in a 45-day extension.

The contract will go before the full commission on April 9.

John has been with the Manchester Times since May 2011. John has won Tennessee Press Association awards for Best News Photo and placed in numerous other categories. John is a 1994 graduate of Tullahoma High School, a graduate of Motlow State Community College and earned a Bachelor of Arts in English from Middle Tennessee State University. He lives in Tullahoma, enjoys painting, dancing and exploring the outdoors.